Webster Financial (NYSE:WBS) Sees Unusually-High Trading Volume – Still a Buy?

Webster Financial Corporation (NYSE:WBS) saw unusually-high trading volume on Wednesday . Approximately 4,383,888 shares changed hands during trading, an increase of 15% from the previous session’s volume of 3,809,242 shares.The stock last traded at $79.06 and had previously closed at $77.95.

Analyst Upgrades and Downgrades

Several analysts have commented on the company. Barclays lifted their price target on Webster Financial from $75.00 to $78.00 and gave the company an “equal weight” rating in a report on Monday. Royal Bank Of Canada raised their target price on shares of Webster Financial from $75.00 to $76.00 and gave the stock a “sector perform” rating in a research report on Wednesday, July 22nd. UBS Group started coverage on shares of Webster Financial in a report on Tuesday, April 7th. They issued a “neutral” rating and a $69.00 target price for the company. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Webster Financial in a research report on Friday, June 12th. Finally, Keefe, Bruyette & Woods cut their price target on shares of Webster Financial from $79.00 to $77.50 and set an “outperform” rating on the stock in a research note on Friday, May 1st. Four investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $74.25.

Webster Financial Stock Performance

The stock’s 50-day moving average is $75.30 and its 200-day moving average is $72.04. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 0.46. The stock has a market cap of $12.81 billion, a price-to-earnings ratio of 12.85 and a beta of 1.01.

Webster Financial (NYSE:WBS) last announced its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.60 earnings per share for the quarter, missing analysts’ consensus estimates of $1.61 by ($0.01). Webster Financial had a net margin of 22.78% and a return on equity of 11.23%. The business had revenue of $769.23 million for the quarter, compared to analyst estimates of $755.80 million. During the same period last year, the firm earned $1.52 earnings per share. The company’s quarterly revenue was up 3.4% on a year-over-year basis. On average, analysts expect that Webster Financial Corporation will post 6.55 EPS for the current year.

Webster Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Monday, August 10th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Monday, August 10th. Webster Financial’s dividend payout ratio is 26.02%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. BOKF NA acquired a new position in shares of Webster Financial during the third quarter worth about $26,000. New England Capital Financial Advisors LLC grew its stake in shares of Webster Financial by 246.8% in the first quarter. New England Capital Financial Advisors LLC now owns 437 shares of the financial services provider’s stock valued at $30,000 after buying an additional 311 shares in the last quarter. Flagship Harbor Advisors LLC purchased a new stake in shares of Webster Financial during the 4th quarter valued at about $28,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Webster Financial during the 3rd quarter valued at about $29,000. Finally, Atlas Capital Advisors Inc. acquired a new position in Webster Financial during the 4th quarter worth approximately $31,000. 85.58% of the stock is owned by hedge funds and other institutional investors.

Webster Financial Company Profile

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.