Webster Financial (NYSE:WBS) Downgraded by Barclays to “Hold”

Webster Financial (NYSE:WBS) was downgraded by equities research analysts at Barclays from a “strong-buy” rating to a “hold” rating in a note issued to investors on Wednesday,Zacks.com reports.

WBS has been the topic of several other research reports. Raymond James Financial increased their price target on shares of Webster Financial from $65.00 to $73.00 and gave the stock an “outperform” rating in a research report on Wednesday, January 7th. Jefferies Financial Group set a $75.00 target price on Webster Financial in a report on Wednesday. TD Cowen lowered Webster Financial from a “strong-buy” rating to a “hold” rating in a research report on Wednesday. Citigroup dropped their price target on Webster Financial from $77.00 to $75.00 and set a “buy” rating on the stock in a research report on Monday, January 26th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Webster Financial in a report on Monday, December 29th. Seven research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, Webster Financial presently has a consensus rating of “Hold” and an average price target of $74.36.

Webster Financial Stock Performance

Webster Financial stock opened at $72.04 on Wednesday. The company has a market cap of $11.62 billion, a price-to-earnings ratio of 12.19, a price-to-earnings-growth ratio of 0.93 and a beta of 1.07. Webster Financial has a 12 month low of $39.43 and a 12 month high of $73.50. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.86 and a quick ratio of 0.86. The stock’s 50-day moving average is $64.42 and its 200-day moving average is $60.67.

Webster Financial (NYSE:WBS) last announced its earnings results on Friday, January 23rd. The financial services provider reported $1.59 EPS for the quarter, beating the consensus estimate of $1.52 by $0.07. The business had revenue of $760.48 million for the quarter, compared to the consensus estimate of $731.95 million. Webster Financial had a return on equity of 11.10% and a net margin of 22.67%.During the same period last year, the business posted $1.43 EPS. Equities analysts anticipate that Webster Financial will post 5.88 earnings per share for the current year.

Insider Activity

In related news, CEO John R. Ciulla sold 8,000 shares of the stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $55.45, for a total value of $443,600.00. Following the completion of the transaction, the chief executive officer owned 231,872 shares in the company, valued at $12,857,302.40. This represents a 3.34% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Corporate insiders own 0.54% of the company’s stock.

Institutional Investors Weigh In On Webster Financial

Several hedge funds and other institutional investors have recently bought and sold shares of WBS. BOKF NA bought a new position in shares of Webster Financial during the 3rd quarter valued at about $26,000. Flagship Harbor Advisors LLC bought a new stake in Webster Financial during the fourth quarter worth approximately $28,000. Root Financial Partners LLC bought a new stake in Webster Financial during the third quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd acquired a new position in Webster Financial in the third quarter worth approximately $29,000. Finally, Wilmington Savings Fund Society FSB bought a new position in shares of Webster Financial in the third quarter valued at $33,000. 85.58% of the stock is currently owned by institutional investors.

More Webster Financial News

Here are the key news stories impacting Webster Financial this week:

• Positive Sentiment: Santander agreed to buy Webster in a roughly $12.2–$12.3B cash-and-stock deal that values WBS near $75.59 per share — a concrete exit price that benefits holders and explains recent trading. Zacks: WBS Agrees to Buyout
• Neutral Sentiment: Morgan Stanley trimmed its price target to $75 and moved to “equal weight,” leaving only modest upside vs. the deal price — a small technical adjustment rather than a rejection of the transaction. Benzinga: Morgan Stanley PT Cut
• Neutral Sentiment: Other analysts (Investec/Jefferies) framed the takeover as a fair/takeout valuation that limits further upside, supporting “hold”/neutral stances and target levels near the deal price. TipRanks: Hold Rating Notes
• Negative Sentiment: Multiple broker downgrades (TD Cowen, Jefferies, Stephens among others) to “hold”/“equal weight” have increased selling pressure and signaled limited upside ahead of deal close. Zacks: Analyst Downgrades
• Negative Sentiment: Several shareholder-law firms (Kahn Swick & Foti, Halper Sadeh, Johnson Fistel) have opened investigations into the adequacy of price and process for the sale, introducing litigation/closing-risk uncertainty. BusinessWire: KSF Investigation
• Negative Sentiment: Santander’s own shares moved lower after the deal announcement, a reminder that acquirer stock performance (and financing/market reaction) could affect deal dynamics or perceived execution risk. MSN: Santander Shares Down

About Webster Financial

Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.

In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.