Webster Financial (NYSE:WBS) Shares Gap Down on Disappointing Earnings

Webster Financial Co. (NYSE:WBS) shares gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $47.17, but opened at $45.82. Webster Financial shares last traded at $45.35, with a volume of 478,059 shares.

The financial services provider reported $1.35 earnings per share for the quarter, missing analysts’ consensus estimates of $1.37 by ($0.02). Webster Financial had a return on equity of 12.55% and a net margin of 21.09%. The company had revenue of $667.10 million during the quarter, compared to analyst estimates of $680.72 million. During the same period in the prior year, the firm earned $1.49 EPS. Webster Financial’s quarterly revenue was up .2% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of research firms have recently commented on WBS. Jefferies Financial Group dropped their price objective on Webster Financial from $65.00 to $56.00 and set a “buy” rating on the stock in a research note on Monday, April 8th. Raymond James reiterated an “outperform” rating and issued a $60.00 price objective on shares of Webster Financial in a research note on Tuesday, March 26th. Barclays dropped their price objective on Webster Financial from $70.00 to $65.00 and set an “overweight” rating on the stock in a research note on Wednesday. Keefe, Bruyette & Woods dropped their price objective on Webster Financial from $64.00 to $58.00 and set an “outperform” rating on the stock in a research note on Wednesday. Finally, Morgan Stanley lifted their price objective on Webster Financial from $51.00 to $61.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 7th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and twelve have assigned a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $56.23.

Insider Activity

In other news, COO Luis Massiani sold 13,500 shares of the company’s stock in a transaction that occurred on Tuesday, January 30th. The stock was sold at an average price of $51.63, for a total value of $697,005.00. Following the sale, the chief operating officer now directly owns 89,621 shares in the company, valued at approximately $4,627,132.23. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. In other news, insider Daniel Bley sold 2,000 shares of the business’s stock in a transaction that occurred on Thursday, February 29th. The stock was sold at an average price of $47.60, for a total value of $95,200.00. Following the transaction, the insider now directly owns 27,955 shares of the company’s stock, valued at approximately $1,330,658. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Luis Massiani sold 13,500 shares of the business’s stock in a transaction that occurred on Tuesday, January 30th. The stock was sold at an average price of $51.63, for a total value of $697,005.00. Following the completion of the transaction, the chief operating officer now directly owns 89,621 shares in the company, valued at $4,627,132.23. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 25,975 shares of company stock worth $1,341,095. Company insiders own 0.88% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank acquired a new position in Webster Financial during the 4th quarter worth $97,217,000. FMR LLC lifted its holdings in Webster Financial by 22.6% during the 3rd quarter. FMR LLC now owns 7,258,411 shares of the financial services provider’s stock worth $292,587,000 after buying an additional 1,339,862 shares in the last quarter. American Century Companies Inc. lifted its holdings in Webster Financial by 1,773.9% during the 3rd quarter. American Century Companies Inc. now owns 1,324,457 shares of the financial services provider’s stock worth $53,389,000 after buying an additional 1,253,778 shares in the last quarter. Azora Capital LP lifted its holdings in Webster Financial by 146.3% during the 4th quarter. Azora Capital LP now owns 1,477,198 shares of the financial services provider’s stock worth $74,983,000 after buying an additional 877,540 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in Webster Financial by 12.3% during the 4th quarter. Dimensional Fund Advisors LP now owns 3,916,013 shares of the financial services provider’s stock worth $198,785,000 after buying an additional 430,331 shares in the last quarter. 85.58% of the stock is owned by institutional investors and hedge funds.

Webster Financial Stock Performance

The firm has a fifty day simple moving average of $47.97 and a 200-day simple moving average of $46.50. The company has a current ratio of 0.86, a quick ratio of 0.85 and a debt-to-equity ratio of 0.54. The stock has a market cap of $7.82 billion, a price-to-earnings ratio of 9.33, a P/E/G ratio of 0.37 and a beta of 1.33.

Webster Financial Company Profile

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.