Blue Trust Inc. Increases Stake in Webster Financial Co. (NYSE:WBS)

On February 1st, 2025, it was reported that Blue Trust Inc. has increased its stake in Webster Financial Co. (NYSE:WBS) by 6.4% during the fourth quarter of 2024. This was revealed in Blue Trust's latest 13F filing with the Securities and Exchange Commission (SEC). The company now holds 8,331 shares of Webster Financial after purchasing an additional 500 shares in the last quarter. The value of Blue Trust's holdings in the financial services company amounts to $460,000 according to the most recent SEC report.

Several other institutional investors have also been active in adjusting their positions in Webster Financial. For instance, State Street Corp raised its position by 4.8% in the third quarter, now owning 7,320,930 shares valued at approximately $341,229,000 after acquiring an additional 333,606 shares. Geode Capital Management LLC increased its stake by 1.9% during the same period, owning 2,969,928 shares worth around $138,465,000 after an addition of 54,613 shares.

Allspring Global Investments also increased its holdings in Webster Financial by 11.4% to reach 1,874,644 shares valued at $87,377,000 after acquiring 191,894 shares in the previous quarter. Similarly, Basswood Capital Management raised its holdings by 5.6% to 1,777,413 shares, which have an estimated worth of $82,845,000 after acquiring an additional 93,929 shares. Charles Schwab Investment Management also made a move, boosting its position by 2.4% to own 1,468,942 shares now valued at $68,467,000 after purchasing 34,373 shares in the last quarter. Overall, institutional investors hold about 85.58% of Webster Financial's stock.

Current Stock Performance

On Friday, Webster Financial's stock opened at $60.09. The company’s fifty-day moving average stands at $57.98, while the two-hundred-day moving average is at $52.04. Webster Financial has a debt-to-equity ratio of 0.34, with both its quick ratio and current ratio at 0.84. The stock has fluctuated between a fifty-two week low of $39.33 and a high of $63.99, boasting a market capitalization of $10.30 billion, a price-to-earnings ratio of 13.75, a PEG ratio of 1.06, and a beta of 1.30.

Quarterly Earnings Report

Webster Financial released its quarterly earnings on January 17th, reporting earnings of $1.43 per share, which surpassed analysts’ expectations of $1.35 by eight cents. The company achieved a return on equity of 10.82% with a net margin of 18.39%. The revenue for the quarter totaled $661 million, which was under the anticipated figure of $687.53 million. This marks a slight decline when compared to the same quarter from the previous year where the firm reported an EPS of $1.46. Market analysts project that Webster Financial will report earnings per share of 5.84 for the current year.

Dividend Announcement

Webster Financial has also recently declared a quarterly dividend of $0.40 per share, set to be distributed on February 20th. Shareholders of record as of February 10th will be eligible for this payout. The ex-dividend date falls on the same date, indicating that the annualized dividend stands at $1.60, providing a dividend yield of 2.66%. The company's dividend payout ratio (DPR) is 36.61%.

Analysis by Wall Street Firms

In terms of market analysis, various research firms have provided updates on Webster Financial. StockNews.com upgraded their assessment of the stock from “sell” to “hold” as of January 11th. Meanwhile, Stephens has set a price target of $58.00 per share, and UBS Group initiated coverage on Webster Financial with a “buy” rating and a target of $76.00. Additionally, JPMorgan Chase downgraded their target from $67.00 to $65.00 while maintaining an “overweight” rating on the stock. On the other hand, Wedbush increased their price target from $52.00 to $59.00 with a “neutral” rating. Currently, three analysts suggest holding the stock while nine have recommended buying it, leading to an average rating of “Moderate Buy” and a target price of $62.08 according to MarketBeat.com.

Insider Transactions

In other related news, insider Daniel Bley sold 500 shares on November 29th at an average price of $61.91, constituting a total value of $30,955. As a result, he now holds 17,279 shares valued at $1,069,742.89, reflecting a 2.81% drop in his ownership percentage. Additionally, CEO John R. Ciulla sold 8,000 shares on November 20th, with a total sale amounting to $474,640. Following his sale, he retains 218,924 shares valued at $12,988,760.92, indicating a 3.53% reduction in his holdings. In total, insiders have sold 25,287 shares valued at $1,485,050 over the past ninety days, with corporate insiders holding approximately 0.88% of the total stock.

Overview of Webster Financial

Webster Financial Corporation operates as the bank holding company for Webster Bank, providing a broad range of financial products and services to individuals, families, and businesses across the United States. Its operations are divided into three segments: Commercial Banking, HSA Bank, and Consumer Banking.

investment, stake, financial