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

Webster Financial Co. (NYSE:WBS)’s share price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. 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 for the quarter, missing the consensus estimate of $1.37 by ($0.02). The firm had revenue of $667.10 million for the quarter, compared to analysts’ expectations of $680.72 million. Webster Financial had a net margin of 21.09% and a return on equity of 12.55%. Webster Financial’s revenue for the quarter was up .2% compared to the same quarter last year. During the same period last year, the firm earned $1.49 earnings per share.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on WBS shares. StockNews.com cut shares of Webster Financial from a “hold” rating to a “sell” rating in a research note on Tuesday, April 16th. Barclays dropped their price target 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. Royal Bank of Canada dropped their price target on shares of Webster Financial from $57.00 to $54.00 and set an “outperform” rating on the stock in a research note on Wednesday. Morgan Stanley lifted their price target 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. Finally, Bank of America started coverage on shares of Webster Financial in a research note on Thursday, January 11th. They issued a “buy” rating and a $60.00 price target on the stock. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and twelve have given a buy rating to the company. Based on data from MarketBeat, Webster Financial presently has an average rating of “Moderate Buy” and a consensus target price of $56.23.

Insiders Place Their Bets

In other Webster Financial news, COO Luis Massiani sold 13,500 shares of Webster Financial stock in a transaction on 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 approximately $4,627,132.23. The sale was disclosed in a filing with the SEC, which is available at the SEC website. In other 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 transaction, the chief operating officer now owns 89,621 shares of the company’s stock, valued at approximately $4,627,132.23. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Christopher J. Motl sold 10,475 shares of the business’s stock in a transaction dated Tuesday, January 30th. The shares were sold at an average price of $52.40, for a total transaction of $548,890.00. Following the transaction, the insider now directly owns 63,306 shares in the company, valued at approximately $3,317,234.40. The disclosure for this sale can be found here. Insiders have sold a total of 25,975 shares of company stock valued at $1,341,095 in the last 90 days. 0.88% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. EverSource Wealth Advisors LLC boosted its position in shares of Webster Financial by 29.7% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,114 shares of the financial services provider’s stock valued at $57,000 after acquiring an additional 255 shares during the last quarter. DekaBank Deutsche Girozentrale raised its holdings in Webster Financial by 1.3% in the 3rd quarter. DekaBank Deutsche Girozentrale now owns 19,924 shares of the financial services provider’s stock valued at $785,000 after buying an additional 263 shares during the period. Spire Wealth Management raised its holdings in Webster Financial by 79.1% in the 4th quarter. Spire Wealth Management now owns 607 shares of the financial services provider’s stock valued at $31,000 after buying an additional 268 shares during the period. Mariner LLC raised its holdings in Webster Financial by 2.4% in the 3rd quarter. Mariner LLC now owns 13,812 shares of the financial services provider’s stock valued at $557,000 after buying an additional 320 shares during the period. Finally, Teacher Retirement System of Texas raised its holdings in Webster Financial by 2.5% in the 3rd quarter. Teacher Retirement System of Texas now owns 13,537 shares of the financial services provider’s stock valued at $546,000 after buying an additional 332 shares during the period. Institutional investors and hedge funds own 85.58% of the company’s stock.

Webster Financial Stock Performance

The stock has a market capitalization of $7.82 billion, a PE ratio of 9.33, a price-to-earnings-growth ratio of 0.37 and a beta of 1.33. The firm’s fifty day moving average is $47.97 and its 200-day moving average is $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.

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.