Webster Financial (NYSE:WBS) Hits New 1-Year High – Still a Buy?

by · The Cerbat Gem

Webster Financial Corporation (NYSE:WBSGet Free Report)’s share price hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $67.25 and last traded at $67.2190, with a volume of 412851 shares. The stock had previously closed at $65.92.

Trending Headlines about Webster Financial

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

  • Positive Sentiment: Q4 earnings beat — Adjusted EPS of $1.59 topped consensus and net income rose year-over-year; revenue of ~$760.5M also exceeded estimates, driven by loan growth. These beats are the primary fundamental drivers supporting the shares. Business Wire: Webster Reports Fourth Quarter 2025
  • Positive Sentiment: Loan-led revenue growth highlighted by multiple outlets — analysts point to core loan expansion as a key revenue driver this quarter, supporting margin stability. Zacks: Q4 Earnings and Revenues Top Estimates
  • Positive Sentiment: Analyst bullish case: Seeking Alpha keeps WBS as a Buy with a $70 target, citing low‑cost, sticky deposit mix (notably the HSA franchise), resilient credit quality, and strong capital — factors that can sustain earnings and limit rate‑sensitivity vs. peers. Seeking Alpha: Low-Cost Deposit Growth Can Drive Further Upside
  • Neutral Sentiment: Earnings call transcript and slides are available for deeper read — management commentary and slides will be useful to assess sustainability of loan growth, deposit trends, and one-time items included in results. Seeking Alpha: Q4 2025 Earnings Call Transcript
  • Neutral Sentiment: Analyst estimate revisions were active ahead of the print — some shops updated forecasts pre-earnings, which can amplify intraday moves even when results beat. Benzinga: Analysts Revise Forecasts Ahead Of Earnings
  • Negative Sentiment: CRE exposure is a noted risk — Seeking Alpha flags roughly $1.3B in rent‑regulated loans and other CRE concentrations; while reserves and capital are positioned well, this portfolio remains a potential headwind if localized stress emerges. Seeking Alpha: CRE Exposure Note
  • Negative Sentiment: Market reaction: despite the beat, the stock is trading lower on the session with above-average volume — suggests profit-taking, where investors are parsing one-time items (gains on debt redemption, charitable items) and portfolio risks rather than the headline beat. MarketBeat: WBS Stock Page

Analyst Upgrades and Downgrades

WBS has been the topic of a number of analyst reports. Wells Fargo & Company reduced their price objective on shares of Webster Financial from $75.00 to $70.00 and set an “overweight” rating on the stock in a report on Monday, October 20th. Royal Bank Of Canada reissued an “outperform” rating and issued a $72.00 target price on shares of Webster Financial in a report on Monday, January 12th. UBS Group reaffirmed a “buy” rating on shares of Webster Financial in a report on Tuesday, January 6th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Webster Financial in a report on Monday, December 29th. Finally, Truist Financial reissued a “buy” rating and set a $72.00 target price on shares of Webster Financial in a research report on Friday, January 9th. Thirteen analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $72.77.

Read Our Latest Analysis on WBS

Webster Financial Trading Down 3.2%

The business has a 50-day moving average of $62.60 and a 200-day moving average of $60.15. The stock has a market capitalization of $10.34 billion, a price-to-earnings ratio of 11.94, a PEG ratio of 0.55 and a beta of 1.05. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.85 and a current ratio of 0.85.

Webster Financial (NYSE:WBSGet Free Report) last issued its quarterly earnings data on Friday, January 23rd. The financial services provider reported $1.59 earnings per share for the quarter, beating analysts’ consensus estimates of $1.52 by $0.07. The company had revenue of $760.48 million during the quarter, compared to analysts’ expectations of $731.95 million. Webster Financial had a return on equity of 11.07% and a net margin of 21.32%.During the same quarter in the previous year, the business earned $1.43 earnings per share. As a group, research analysts forecast that Webster Financial Corporation will post 5.88 EPS for the current year.

Webster Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, November 20th. Investors of record on Monday, November 10th were paid a dividend of $0.40 per share. The ex-dividend date was Monday, November 10th. This represents a $1.60 dividend on an annualized basis and a yield of 2.5%. Webster Financial’s dividend payout ratio is currently 29.80%.

Insider Transactions at Webster Financial

In other Webster Financial news, CEO John R. Ciulla sold 8,000 shares of the firm’s stock in a transaction on Monday, November 17th. The shares were sold at an average price of $55.45, for a total transaction of $443,600.00. Following the transaction, the chief executive officer directly owned 231,872 shares of the company’s stock, valued at approximately $12,857,302.40. This trade represents a 3.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 0.54% of the company’s stock.

Hedge Funds Weigh In On Webster Financial

A number of hedge funds and other institutional investors have recently made changes to their positions in WBS. BOKF NA purchased a new stake in Webster Financial during the 3rd quarter valued at approximately $26,000. Flagship Harbor Advisors LLC acquired a new position in shares of Webster Financial in the fourth quarter valued at approximately $28,000. Root Financial Partners LLC purchased a new stake in shares of Webster Financial during the third quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Webster Financial during the third quarter worth $29,000. Finally, Wilmington Savings Fund Society FSB purchased a new position in Webster Financial in the 3rd quarter valued at $33,000. Hedge funds and other institutional investors own 85.58% of the company’s stock.

About Webster Financial

(Get Free Report)

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.

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