Can Webster Financial Corporation (WBS) Add Value To Your Portfolio?


As of Friday close, Webster Financial Corporation’s (NYSE:WBS) stock was down -$2.51, moving down -6.16 percent to $38.24. The average number of shares traded per day over the past five days has been 4,763,300 shares. 2 times new highs have been achieved over the past 5 days, with a -$4.79 fall in that time frame. In the last twenty days, the average volume was 2,113,565, while in the previous 50 days, it was 1,409,696.

Since last month, WBS stock retreated -30.49%. Shares of the company fell to $36.60 on 03/16/23, the lowest level in the past month. A 52-week high of $60.48 was reached on 02/14/23 after having rallying from a 52-week low of $36.60. Since the beginning of this year, WBS’s stock price has dropped by -19.22% or -$9.10, and marked a new high 12 times. However, the stock has declined by -36.77% since its 52-week high.

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WBS stock investors should be aware that Webster Financial Corporation (WBS) stock had its last reported insider trading activity 191 days ago on Sep 08. Massiani Luis, the Chief Operating Officer of the company, disposed of 20,000 shares for $47.35 on Sep 08. It resulted in a $947,039 divestment by the insider. Massiani Luis sold 8,000 shares at an average price of $46.43 on Aug 05. The insider now owns 152,910 shares following the transaction. On May 18, Chief Human Resources Officer Evans Javier L. sold 1,975 shares at $47.02 apiece. The transaction was valued at $92,866.

Valuation Metrics

Right now, Webster Financial Corporation (WBS) has a P/E ratio of about 10.65. The stock’s beta is 1.30. Besides these, the trailing price-to-sales (P/S) ratio of 3.06, the price-to-book (PB) ratio of 0.85, and the price-to-cash flow ratio of 6.61 may also be considered.

The latest dividend of $0.40 per share was paid out, remained unchanged from last year’s $0.40. On Monday April 22 2019, a $0.07 dividend increase was announced.

Financial Health

According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 0.14, and the total debt-to-equity ratio was 0.14. In the year ended December 30, operating margins totaled 76.80%. Based on annual data, WBS earned $2.03 billion in gross profit and brought in $2.28 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 18.10%. Return on equity (ROE) for the past 12 months was 8.10%.

In Webster Financial Corporation’s quarter-end financial report for December 30, it reported total debt of $1.07 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. While analysts expected Webster Financial Corporation to report $1.66 quarterly earnings, the actual figure was $1.6 per share, beating the consensus estimate by -3.60%. The value of shareholders’ equity is $174.01 million.

Technical Picture

This quick technical analysis looks at Webster Financial Corporation’s (WBS) price momentum. With a historical volatility rate of 91.38%, the RSI 9-day stood at 25.51% on 17 March.

With respect to its five-day moving average, the current Webster Financial Corporation price is down by -11.13% percent or -$4.79. At present, WBS shares trade -30.79% below its 20-day simple moving average and -24.83% percent below its 100-day simple moving average. However, the stock is currently trading approximately -18.34% below its SMA50 and -22.10% below its SMA200.

Stochastic coefficient K was 13.62% and Stochastic coefficient D was 12.68%, while ATR was 2.89. Given the Stochastic reading of 9.62% for the 14-day period, the RSI (14) reading has been calculated as 26.66%. As of today, the MACD Oscillator reading stands at -3.39, while the 14-day reading stands at -6.87.

Analyst Ratings

UBS launched its rating on Webster Financial Corporation (NYSE: WBS) to a Buy in a note to investors on March 15, 2023. Webster Financial Corporation (WBS) has been rated Overweight by analysts. According to 0 brokerage firms, WBS is a sell, and 3 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate Webster Financial Corporation stock as buy, with 8 recommending it as overweight.

With a median target price of $61.50, the current consensus forecast for the stock is $54.00 – $75.00. Based on these forecasts, analysts predict Webster Financial Corporation (WBS) will achieve an average price target of $63.29.


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