Morgan Stanley Cuts Webster Financial (NYSE:WBS) Price Target to $75.00

Webster Financial (NYSE:WBS) had its price target lowered by Morgan Stanley from $77.00 to $75.00 in a research report report published on Thursday,Benzinga reports. Morgan Stanley currently has an equal weight rating on the financial services provider’s stock.

Several other equities analysts have also issued reports on the company. UBS Group lowered Webster Financial from a “buy” rating to a “neutral” rating and decreased their target price for the stock from $77.00 to $75.00 in a research note on Thursday. Citigroup dropped their target price on Webster Financial from $77.00 to $75.00 and set a “buy” rating for the company in a research report on Monday, January 26th. Stephens reissued an “equal weight” rating and set a $73.00 price target on shares of Webster Financial in a research report on Wednesday. TD Cowen lowered shares of Webster Financial from a “strong-buy” rating to a “hold” rating in a research note on Wednesday. Finally, Keefe, Bruyette & Woods lifted their price objective on shares of Webster Financial from $75.00 to $77.00 and gave the company an “outperform” rating in a report on Monday, January 26th. Six research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $74.36.

Webster Financial Stock Performance

Shares of WBS stock opened at $73.28 on Thursday. 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 firm has a market cap of $11.82 billion, a P/E ratio of 12.40, a P/E/G ratio of 0.94 and a beta of 1.07. The firm’s 50 day moving average price is $64.69 and its 200-day moving average price is $60.75. Webster Financial has a one year low of $39.43 and a one year high of $73.50.

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

Webster Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, February 19th. Shareholders of record on Monday, February 9th will be paid a $0.40 dividend. The ex-dividend date is Monday, February 9th. This represents a $1.60 dividend on an annualized basis and a yield of 2.2%. Webster Financial’s dividend payout ratio (DPR) is currently 27.07%.

Insider Activity

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

Institutional Trading of Webster Financial

Hedge funds and other institutional investors have recently made changes to their positions in the company. BOKF NA acquired a new stake in shares of Webster Financial in the 3rd quarter valued at about $26,000. Flagship Harbor Advisors LLC purchased a new stake in Webster Financial in the fourth quarter valued at approximately $28,000. Root Financial Partners LLC purchased a new stake in Webster Financial in the third quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Webster Financial in the third quarter valued at approximately $29,000. Finally, Wilmington Savings Fund Society FSB purchased a new position in shares of Webster Financial during the third quarter worth approximately $33,000. Institutional investors and hedge funds own 85.58% of the company’s stock.

Key Stories Impacting Webster Financial

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

• Positive Sentiment: Santander agreed to acquire Webster in a transaction that market reports say will increase Santander’s U.S. scale and profitability — this takeover announcement is the primary bullish catalyst for WBS today. Santander to Buy Webster Bank
• Neutral Sentiment: Morgan Stanley trimmed its price target from $77 to $75 and moved to an “equal weight” stance — a modest target cut that still implies small upside vs. current levels, so it’s a minor, mixed signal. Benzinga

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.