Webster Financial (NYSE:WBS) Hits New 12-Month High – Still a Buy?

Webster Financial Corporation (NYSE:WBS)’s stock price hit a new 52-week high during trading on Monday . The stock traded as high as $73.98 and last traded at $73.4380, with a volume of 513539 shares. The stock had previously closed at $73.09.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on WBS shares. TD Cowen downgraded Webster Financial from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, February 4th. Citigroup cut shares of Webster Financial from a “buy” rating to a “hold” rating and set a $75.00 price target for the company. in a research note on Friday, February 13th. Stephens reissued an “equal weight” rating and issued a $73.00 price objective on shares of Webster Financial in a research report on Wednesday, February 4th. Wells Fargo & Company reaffirmed an “equal weight” rating and issued a $70.00 target price on shares of Webster Financial in a report on Friday, February 6th. Finally, Santander cut Webster Financial to a “hold” rating in a report on Wednesday, February 4th. Four equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $74.36.

Webster Financial Stock Down 0.5%

The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.86 and a current ratio of 0.86. The stock has a market cap of $11.69 billion, a P/E ratio of 12.26 and a beta of 1.07. The stock’s fifty day simple moving average is $66.99 and its 200-day simple moving average is $61.99.

Webster Financial (NYSE:WBS) last issued its quarterly earnings results on Friday, January 23rd. The financial services provider reported $1.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 quarter in the prior year, the business posted $1.43 earnings per share. As a group, research analysts forecast that Webster Financial Corporation will post 5.88 earnings per share for the current fiscal year.

Webster Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, February 19th. Shareholders of record on Monday, February 9th were issued a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend was Monday, February 9th. Webster Financial’s dividend payout ratio (DPR) is currently 27.07%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP boosted its holdings in shares of Webster Financial by 1.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 7,920,300 shares of the financial services provider’s stock valued at $498,509,000 after purchasing an additional 107,335 shares in the last quarter. Invesco Ltd. raised its holdings in shares of Webster Financial by 2.9% during the 4th quarter. Invesco Ltd. now owns 5,516,110 shares of the financial services provider’s stock worth $347,184,000 after buying an additional 156,636 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Webster Financial by 15.7% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,246,364 shares of the financial services provider’s stock worth $330,207,000 after buying an additional 713,294 shares during the last quarter. Capital International Investors boosted its stake in Webster Financial by 0.4% in the fourth quarter. Capital International Investors now owns 4,177,281 shares of the financial services provider’s stock valued at $263,058,000 after buying an additional 16,676 shares in the last quarter. Finally, American Century Companies Inc. grew its position in Webster Financial by 14.5% in the second quarter. American Century Companies Inc. now owns 3,453,778 shares of the financial services provider’s stock valued at $188,576,000 after acquiring an additional 438,131 shares during the last quarter. 85.58% of the stock is currently owned by institutional investors and hedge funds.

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.