Morgan Stanley Issues Pessimistic Forecast for Webster Financial (NYSE:WBS) Stock Price

Webster Financial (NYSE:WBS) had its price objective reduced by investment analysts at Morgan Stanley from $77.00 to $75.00 in a report released on Thursday,Benzinga reports. The brokerage presently has an “equal weight” rating on the financial services provider’s stock. Morgan Stanley’s target price would suggest a potential upside of 3.95% from the company’s current price.

Several other analysts have also commented on the stock. Jefferies Financial Group set a $75.00 target price on shares of Webster Financial in a research note on Wednesday. Weiss Ratings reiterated a “buy (b-)” rating on shares of Webster Financial in a report on Monday, December 29th. TD Cowen downgraded shares of Webster Financial from a “strong-buy” rating to a “hold” rating in a research report on Wednesday. Santander lowered shares of Webster Financial to a “hold” rating in a research note on Wednesday. Finally, Barclays set a $75.00 price objective on Webster Financial in a report on Wednesday. Eight research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat, Webster Financial has a consensus rating of “Moderate Buy” and a consensus price target of $74.36.

Webster Financial Stock Down 0.2%

Shares of WBS stock traded down $0.11 during mid-day trading on Thursday, hitting $72.15. The stock had a trading volume of 2,309,762 shares, compared to its average volume of 2,954,265. Webster Financial has a 12-month low of $39.43 and a 12-month high of $73.50. The firm’s 50-day moving average is $64.17 and its two-hundred day moving average is $60.59. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.86 and a quick ratio of 0.86. The firm has a market capitalization of $11.64 billion, a P/E ratio of 12.20, a price-to-earnings-growth ratio of 0.92 and a beta of 1.07.

Webster Financial (NYSE:WBS) last posted its earnings results on Friday, January 23rd. The financial services provider reported $1.59 EPS for the quarter, beating analysts’ consensus estimates of $1.52 by $0.07. The company had revenue of $760.48 million for the quarter, compared to the consensus estimate of $731.95 million. Webster Financial had a return on equity of 11.10% and a net margin of 22.67%.During the same quarter in the previous year, the business earned $1.43 earnings per share. On average, analysts predict that Webster Financial will post 5.88 earnings per share for the current fiscal year.

Insider Buying and Selling at Webster Financial

In related news, CEO John R. Ciulla sold 8,000 shares of the firm’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $55.45, for a total value of $443,600.00. Following the completion of the transaction, the chief executive officer owned 231,872 shares in the company, valued at $12,857,302.40. This trade represents a 3.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.54% of the company’s stock.

Institutional Investors Weigh In On Webster Financial

A number of institutional investors have recently made changes to their positions in the stock. Assenagon Asset Management S.A. boosted its holdings in Webster Financial by 959.3% during the 3rd quarter. Assenagon Asset Management S.A. now owns 358,294 shares of the financial services provider’s stock worth $21,297,000 after acquiring an additional 324,471 shares during the last quarter. Campbell & CO Investment Adviser LLC bought a new position in shares of Webster Financial during the 3rd quarter worth $1,991,000. Norges Bank purchased a new stake in Webster Financial in the 2nd quarter worth about $131,780,000. Pzena Investment Management LLC lifted its holdings in Webster Financial by 1.5% during the second quarter. Pzena Investment Management LLC now owns 1,612,758 shares of the financial services provider’s stock valued at $88,057,000 after purchasing an additional 23,605 shares during the last quarter. Finally, M&T Bank Corp increased its stake in shares of Webster Financial by 550.7% in the second quarter. M&T Bank Corp now owns 44,295 shares of the financial services provider’s stock worth $2,418,000 after purchasing an additional 37,488 shares in the last quarter. Institutional investors own 85.58% of the company’s stock.

More Webster Financial News

Here are the key news stories impacting Webster Financial this week:

• Positive Sentiment: Acquisition: Banco Santander agreed to acquire Webster in a cash‑and‑stock transaction that provides a near‑term exit and a takeover premium for WBS shareholders; the deal is the main driver pushing WBS higher. Webster Financial Corporation Enters Into Merger Agreement With Banco Santander
• Neutral Sentiment: Market mechanics: Trading in WBS was temporarily halted when the deal was announced (standard for material M&A news); Santander shares moved lower on the acquisition reaction, which is a cross‑market dynamic but not directly negative for WBS’s deal value. Santander shares down after deal
• Negative Sentiment: Analyst downgrades: Multiple firms (TD Cowen, Jefferies, Stephens and others) cut WBS to Hold/Equal Weight or removed “strong‑buy” ratings, citing that the Santander takeout caps upside and leaves limited room for further share appreciation ahead of closing. Those downgrades pressure sentiment and can weigh on near‑term performance. Stephens downgrades Webster
• Negative Sentiment: Shareholder litigation risk: Several investor‑rights firms (Kahn Swick & Foti, Halper Sadeh, Johnson Fistel, Ademi and others) have opened investigations into whether the sale price and process are fair, creating potential for litigation, deal delay or pressure for a higher bid — a source of uncertainty for investors. Kahn Swick & Foti investor alert Halper Sadeh investigation

Webster Financial Company Profile

Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.

In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.