TD Cowen Downgrades Webster Financial (NYSE:WBS) to Hold

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

Several other brokerages also recently commented on WBS. Stephens restated an “equal weight” rating and issued a $73.00 target price on shares of Webster Financial in a research note on Wednesday. Wells Fargo & Company cut their price objective on shares of Webster Financial from $75.00 to $70.00 and set an “overweight” rating for the company in a research report on Monday, October 20th. Truist Financial cut shares of Webster Financial from a “buy” rating to a “hold” rating and set a $74.00 price objective for the company. in a research note on Wednesday. Royal Bank Of Canada cut shares of Webster Financial from an “outperform” rating to a “sector perform” rating and set a $75.00 target price on the stock. in a research note on Wednesday. Finally, JPMorgan Chase & Co. raised their price target on shares of Webster Financial from $70.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, December 16th. Eight investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Webster Financial has a consensus rating of “Hold” and a consensus target price of $74.50.

Webster Financial Stock Up 0.7%

Webster Financial stock opened at $72.42 on Wednesday. The firm has a 50 day simple moving average of $64.17 and a 200 day simple moving average of $60.59. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.40. Webster Financial has a 1-year low of $39.43 and a 1-year high of $73.50. The firm has a market capitalization of $11.68 billion, a price-to-earnings ratio of 12.25, a P/E/G ratio of 0.92 and a beta of 1.07.

Webster Financial (NYSE:WBS) last posted its quarterly earnings results on Friday, January 23rd. The financial services provider reported $1.59 EPS for the quarter, topping analysts’ consensus estimates of $1.52 by $0.07. The firm had revenue of $760.48 million during the quarter, compared to analyst estimates 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 company earned $1.43 earnings per share. On average, analysts predict that Webster Financial will post 5.88 earnings per share for the current year.

Insider Activity at Webster Financial

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Grove Bank & Trust increased its position in shares of Webster Financial by 18.7% during the 4th quarter. Grove Bank & Trust now owns 1,005 shares of the financial services provider’s stock valued at $63,000 after purchasing an additional 158 shares during the last quarter. Farther Finance Advisors LLC boosted its stake in Webster Financial by 39.7% in the fourth quarter. Farther Finance Advisors LLC now owns 560 shares of the financial services provider’s stock worth $35,000 after buying an additional 159 shares in the last quarter. Curi Capital LLC grew its position in Webster Financial by 0.3% during the second quarter. Curi Capital LLC now owns 68,500 shares of the financial services provider’s stock valued at $3,740,000 after acquiring an additional 182 shares during the last quarter. Brown Brothers Harriman & Co. grew its position in Webster Financial by 27.9% during the third quarter. Brown Brothers Harriman & Co. now owns 839 shares of the financial services provider’s stock valued at $50,000 after acquiring an additional 183 shares during the last quarter. Finally, BCGM Wealth Management LLC raised its stake in shares of Webster Financial by 1.2% during the second quarter. BCGM Wealth Management LLC now owns 16,161 shares of the financial services provider’s stock worth $882,000 after acquiring an additional 186 shares in the last quarter. 85.58% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Webster Financial

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

• Positive Sentiment: Definitive merger agreement: Webster will be acquired by Banco Santander in a $12.3 billion cash‑and‑stock deal that pays Webster shareholders $48.75 in cash plus 2.0548 Santander American Depository Shares per WBS share (implying roughly $75.59/share based on Santander stock). The deal is expected to close in the second half of 2026 and provides an outsized near‑term valuation for WBS holders. Webster Financial Corporation Enters Into Merger Agreement
• Neutral Sentiment: Analysts mark limited upside post‑takeover: Several sell‑side analysts have moved to Hold and set price targets near the takeout level (around $74–$75), noting the acquisition caps upside for WBS shares before deal close. That reduces incentive for speculative buyers above the tender/implied price. Hold Rating on Webster Financial
• Neutral Sentiment: Trading dynamics: WBS experienced a temporary trading halt when the deal was announced and is now trading with materially higher volume — an indication of takeover-related flows rather than fresh fundamental news. (Halts and heavy volume are typical around deal announcements and can increase intraday volatility.)
• Negative Sentiment: Multiple shareholder law firms have launched investigations and shareholder alerts questioning whether Webster’s board obtained a fair price and followed proper process; firms involved include Kahn Swick & Foti, Halper Sadeh, Johnson Fistel and Ademi. Potential litigation or challenges could delay closing, increase transaction costs, or pressure deal terms. KSF Investor Alert Halper Sadeh Alert Johnson Fistel Investigation Ademi Firm Alert

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.