Is Webster Financial Corporation (WBS) A Good Investment?

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Webster Financial Corporation (NYSE:WBS) finished Friday with an addition of $0.21 to close at $47.34, an upside of 0.45 percent. An average of 585,620 shares of common stock have been traded in the last five days. There was a gain of $1.08 in the past week, and it reached a new high 9 times over the past 12 months. The last 20 days have seen an average of 1,250,205 shares traded, while the 50-day average volume stands at 1,013,746.

WBS stock has decreased by -12.88% in the last month. The company shares reached their 1-month lowest point of $43.41 on 12/16/22. With the stock rallying to its 52-week high on 01/12/22, shares of the company touched a low of $40.72 and a high of $65.00 in 52 weeks. It has reached a new high 8 times so far this year and lost -15.22% or -$8.50 in price. In spite of this, the price is down -27.17% from the 52-week high.


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Insider Transactions

WBS stock investors should be aware that Webster Financial Corporation (WBS) stock had its last reported insider trading activity 114 days ago on Sep 08. In this transaction, the insider spent $947,039. Chief Operating Officer, Massiani Luis, disposed of 8,000 shares at a price of $46.43 on Aug 05. The insider now owns more than $371,447 worth of shares. Prior to that, Chief Human Resources Officer Evans Javier L. went on to Sale 1,975 shares at $47.02 each on May 18. An amount of $92,866 was transacted.

Valuation Metrics

Webster Financial Corporation (WBS) has a trailing price-to-earnings (P/E) ratio of 13.93. The stock’s beta is 1.26. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.59, the price-to-book (PB) ratio at 1.09, and the price-to-cash flow ratio at 7.79.

The company has a payout ratio of 47.00%. The company’s most recent quarterly dividend payment was $0.40 a share, without any change from last year. Its latest increase dividend $0.07 reported on Monday April 22 2019.

Financial Health

Further, the company has a long term debt to equity ratio of 0.14 and a total debt to equity ratio of 0.14 for the quarter ending September 29. Its gross profit as reported stood at $901.09 million compared to revenue of $942.84 million.

Earnings Surprise

For the three-month period that ended September 29, Webster Financial Corporation had $1.07 billion in total debt. The analyst consensus anticipated Webster Financial Corporation’s latest quarter earnings to come in at $1.41 per share, but it turned out to be $1.46, a 3.50% surprise. At the end of the quarter ending September 29, Webster Financial Corporation’s stock balance sheet showed total debt was $5.85 billion. Shareholders own equity worth $174.01 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Webster Financial Corporation (WBS) price momentum. RSI 9-day as of the close on 30 December was 51.36%, suggesting the stock is Neutral, with historical volatility in this time frame at 12.06%.

As of today, WBS’s price is $46.85 +2.33% or $1.08 from its 5-day moving average. WBS is currently trading -11.88% lower than its 20-day SMA and +2.22% higher than its 100-day SMA. However, the stock’s current price level is -2.49% below the SMA50 and -19.95% below the SMA200.

The stochastic %K and %D were 69.85% and 64.47%, respectively, and the average true range (ATR) was 1.08. With the 14-day stochastic at 78.13% and the average true range at 1.20, the RSI (14) stands at 45.57%. The stock has reached 0.49 on the 9-day MACD Oscillator while the 14-day reading was at 0.83.

Analyst Ratings

Morgan Stanley launched coverage on Webster Financial Corporation (NYSE: WBS) in its analyst report released on December 05, 2022. The firm assigned the stock an Overweight rating. The consensus rating for Webster Financial Corporation (WBS) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell WBS, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 7 others rate it as a “buy”.

What is WBS’s price target for the next 12 months?

Analysts predict a range of price targets between $50.00 and $75.00, with a median target of $60.00. Taking a look at these predictions, the average price target given by analysts for Webster Financial Corporation (WBS) stock is $61.73.

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