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

Webster Financial Co. (NYSE:WBS)’s stock price gapped down before the market opened 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 trading hands.

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

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. Raymond James reaffirmed an “outperform” rating and set a $60.00 target price on shares of Webster Financial in a research note on Tuesday, March 26th. Keefe, Bruyette & Woods cut their target price on shares of Webster Financial from $64.00 to $58.00 and set an “outperform” rating on the stock in a research note on Wednesday. Morgan Stanley lifted their target price on shares of Webster Financial from $51.00 to $61.00 and gave the company an “overweight” rating in a research note on Wednesday, February 7th. Barclays cut their target price on shares of Webster Financial from $70.00 to $65.00 and set an “overweight” rating on the stock in a research note on Wednesday. Finally, Bank of America assumed coverage on shares of Webster Financial in a research note on Thursday, January 11th. They set a “buy” rating and a $60.00 target price on the stock. One research analyst has rated the stock with a sell rating, two have issued a hold rating and twelve have issued a buy rating to the company. According to MarketBeat.com, Webster Financial currently has an average rating of “Moderate Buy” and an average target price of $56.23.

Insider Buying and Selling

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

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Rise Advisors LLC purchased a new position in Webster Financial in the first quarter worth about $29,000. Spire Wealth Management raised its holdings in shares of Webster Financial by 79.1% during the fourth quarter. Spire Wealth Management now owns 607 shares of the financial services provider’s stock valued at $31,000 after purchasing an additional 268 shares during the last quarter. NBC Securities Inc. purchased a new position in shares of Webster Financial during the third quarter valued at approximately $32,000. Bruce G. Allen Investments LLC purchased a new position in shares of Webster Financial during the fourth quarter valued at approximately $42,000. Finally, Principal Securities Inc. purchased a new position in shares of Webster Financial during the fourth quarter valued at approximately $45,000. 85.58% of the stock is owned by hedge funds and other institutional investors.

Webster Financial Price Performance

The company has a quick ratio of 0.85, a current ratio of 0.86 and a debt-to-equity ratio of 0.54. The firm’s fifty day moving average price is $47.97 and its two-hundred day moving average price is $46.50. The stock has a market capitalization of $7.82 billion, a PE ratio of 9.33, a PEG ratio of 0.37 and a beta of 1.33.

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.