Wedbush Predicts Reduced Earnings for Webster Financial

Webster Financial Co. (NYSE:WBS - Free Report) - Analysts at Wedbush cut their Q1 2025 earnings per share estimates for Webster Financial in a note issued to investors on Tuesday, November 5th. Wedbush analyst D. Chiaverini now anticipates that the financial services provider will post earnings of $1.30 per share for the quarter, down from their previous estimate of $1.34. Wedbush currently has a "Neutral" rating and a $59.00 price target on the stock. The consensus estimate for Webster Financial's current full-year earnings is $5.23 per share. Wedbush also issued estimates for Webster Financial's Q2 2025 earnings at $1.37 EPS, Q3 2025 earnings at $1.46 EPS, Q4 2025 earnings at $1.52 EPS, FY2025 earnings at $5.65 EPS and FY2026 earnings at $6.50 EPS.

WBS has been the subject of several other reports. Morgan Stanley reduced their target price on Webster Financial from $57.00 to $54.00 and set an "equal weight" rating on the stock in a report on Monday, September 30th. Stephens set a $58.00 target price on shares of Webster Financial in a report on Thursday, October 17th. JPMorgan Chase & Co. lowered their price objective on shares of Webster Financial from $58.00 to $55.00 and set an "overweight" rating for the company in a research report on Wednesday, October 9th. Royal Bank of Canada raised their target price on shares of Webster Financial from $57.00 to $62.00 and gave the company an "outperform" rating in a research report on Friday, October 18th. Finally, Keefe, Bruyette & Woods lowered their price target on shares of Webster Financial from $58.00 to $55.00 and set an "outperform" rating for the company in a report on Tuesday, July 9th. Four analysts have rated the stock with a hold rating and nine have given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $57.85.

Webster Financial Price Performance

Shares of NYSE WBS traded up $9.27 during trading hours on Wednesday, hitting $60.12. 4,515,164 shares of the stock were exchanged, compared to its average volume of 1,254,118. The company's fifty day simple moving average is $47.68 and its two-hundred day simple moving average is $45.71. The company has a market cap of $10.31 billion, a PE ratio of 13.00, a price-to-earnings-growth ratio of 0.84 and a beta of 1.27. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.86 and a current ratio of 0.86. Webster Financial has a 1-year low of $38.54 and a 1-year high of $60.13.

Webster Financial (NYSE:WBS - Get Free Report) last announced its quarterly earnings data on Thursday, October 17th. The financial services provider reported $1.34 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.35 by ($0.01). The firm had revenue of $647.62 million for the quarter, compared to analyst estimates of $677.72 million. Webster Financial had a return on equity of 11.03% and a net margin of 18.80%. During the same quarter in the previous year, the company earned $1.55 earnings per share.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in WBS. Vanguard Group Inc. boosted its stake in Webster Financial by 0.3% during the 1st quarter. Vanguard Group Inc. now owns 17,926,270 shares of the financial services provider's stock valued at $910,117,000 after purchasing an additional 54,841 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Webster Financial by 1.6% during the first quarter. Price T Rowe Associates Inc. MD now owns 6,237,482 shares of the financial services provider's stock worth $316,678,000 after buying an additional 95,780 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in Webster Financial by 28.0% during the second quarter. Dimensional Fund Advisors LP now owns 5,522,044 shares of the financial services provider's stock worth $240,687,000 after buying an additional 1,206,575 shares in the last quarter. Earnest Partners LLC lifted its stake in Webster Financial by 0.4% during the 2nd quarter. Earnest Partners LLC now owns 3,086,111 shares of the financial services provider's stock valued at $134,524,000 after acquiring an additional 13,487 shares in the last quarter. Finally, American Century Companies Inc. boosted its holdings in Webster Financial by 12.9% during the 2nd quarter. American Century Companies Inc. now owns 2,640,425 shares of the financial services provider's stock worth $115,096,000 after acquiring an additional 301,935 shares during the last quarter. 85.58% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other Webster Financial news, CAO Albert Jen-Wen Wang sold 4,000 shares of the stock in a transaction that occurred on Monday, October 21st. The stock was sold at an average price of $52.43, for a total transaction of $209,720.00. Following the transaction, the chief accounting officer now directly owns 14,273 shares in the company, valued at approximately $748,333.39. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In related news, CAO Albert Jen-Wen Wang sold 4,000 shares of the business's stock in a transaction dated Monday, October 21st. The stock was sold at an average price of $52.43, for a total value of $209,720.00. Following the completion of the sale, the chief accounting officer now directly owns 14,273 shares of the company's stock, valued at $748,333.39. The trade was a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Mark Pettie sold 4,500 shares of the firm's stock in a transaction that occurred on Tuesday, October 22nd. The shares were sold at an average price of $51.14, for a total value of $230,130.00. Following the completion of the sale, the director now directly owns 32,780 shares of the company's stock, valued at $1,676,369.20. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 11,963 shares of company stock valued at $620,272 in the last ninety days. 0.72% of the stock is owned by company insiders.

Webster Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 12th. Stockholders of record on Friday, November 1st will be paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.66%. The ex-dividend date of this dividend is Friday, November 1st. Webster Financial's dividend payout ratio is 36.28%.

About Webster Financial

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of financial products and services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Consumer Banking.