Webster Financial Co. Announces Quarterly Dividend of $0.40

Webster Financial Co. (NYSE:WBS) announced a quarterly dividend on January 29th. The company will pay shareholders a dividend of $0.40 per share on February 20th. Those eligible for this payment must be shareholders of record by February 10th. This dividend amounts to an annualized total of $1.60 per share, which translates to a dividend yield of 2.67%.

Webster Financial has a healthy dividend payout ratio of 24.0%, suggesting that its earnings sufficiently cover the dividend pay-outs. Analysts predict that Webster Financial will earn approximately $6.67 per share next year, indicating that the company will continue to manage its dividend obligations comfortably.

Stock Performance of Webster Financial

On January 29th, shares of Webster Financial rose by 1.0%, reaching a price of $59.95. A total of 804,835 shares exchanged hands during trading, with the average volume being 1,102,502 shares. Over the past year, the stock has fluctuated between a low of $39.33 and a high of $63.99. Currently, the stock boasts a market capitalization of $10.28 billion, with a price-to-earnings (PE) ratio of 13.72 and a price-to-earnings-growth (PEG) ratio of 1.06. The stock's performance is also characterized by a beta of 1.30. In terms of moving averages, Webster Financial has a 50-day simple moving average of $58.02 and a 200-day simple moving average of $51.84. Financially, the company has a quick ratio and current ratio of 0.84, along with a debt-to-equity ratio of 0.34.

On January 17th, Webster Financial reported its quarterly earnings results. The company posted earnings of $1.43 per share, surpassing analysts' expectations of $1.35 per share by $0.08. Although the company achieved a net margin of 18.39% and a return on equity of 10.82%, its quarterly revenue of $661 million fell short of the projected $687.53 million. Last year during the same period, Webster Financial earned $1.46 per share, and analysts forecast an average earnings per share of 5.83 for the current year.

Price Ratings from Analysts

Several analysts have provided updates regarding Webster Financial. UBS Group initiated coverage with a "buy" rating and set a price target of $76.00. Similarly, Wells Fargo upgraded their rating from "equal weight" to "overweight" and increased their price target from $70.00 to $75.00. StockNews.com changed their rating from "sell" to "hold" recently. Additionally, Wedbush raised their price target from $52.00 to $59.00 while assigning a "neutral" rating. Royal Bank of Canada also lifted their price target from $66.00 to $68.00 with an "outperform" rating. At this time, there are three analysts who have given the stock a hold rating, while nine analysts have rated it as a buy. The average rating across analysts is classified as a "Moderate Buy", with a consensus price target of $62.08.

Insider Transactions

In recent insider trading news, Charles L. Wilkins, an insider at Webster Financial, sold 5,000 shares on November 19th at an average price of $59.50, totaling $297,500.00. As a result of this transaction, he now holds 33,657 shares of company stock valued at approximately $2.00 million. This sale represents a decrease of 12.93% in his holdings. In another instance, insider Daniel Bley sold 500 shares on November 29th at an average price of $61.91 for a total of $30,955.00, signaling a 2.81% decrease in his holdings as well. In total, insiders sold 25,287 shares worth $1,485,050 in the past three months, accounting for 0.88% of the company's stock.

Overview of Webster Financial

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

Webster, Dividend, Earnings