Webster Financial Co. Announces Quarterly Dividend of $0.40 (NYSE:WBS)

Webster Financial Co. (NYSE:WBS) announced on January 29th that it will pay a quarterly dividend. Shareholders who are on the record as of February 10th will receive a dividend of $0.40 per share on February 20th. This translates to an annualized dividend of $1.60 and gives investors a dividend yield of 2.67%.

Webster Financial has a payout ratio of 24.0%, suggesting that the dividends are well-covered by the company’s earnings. Research forecasts predict that the company will achieve earnings of $6.67 per share in the next year. This indicates that Webster Financial can sustain its annual dividend of $1.60, maintaining the same payout ratio of 24.0%.

Stock Performance

On January 29th, the stock of Webster Financial saw a rise of 1.0%, closing at $59.95. During this trading session, 804,835 shares exchanged hands, which is lower than the average volume of 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 company has a market capitalization of $10.28 billion, a price-to-earnings (P/E) ratio of 13.72, and a price-to-earnings-growth (PEG) ratio of 1.06. Additionally, the stock has a beta of 1.30. Its 50-day and 200-day simple moving averages stand at $58.02 and $51.84, respectively. Moreover, the company has a quick ratio and a current ratio both at 0.84 and a debt-to-equity ratio of 0.34.

On January 17th, Webster Financial released its quarterly earnings report. For the reported quarter, the company recorded earnings of $1.43 per share, outperforming analysts' expectations of $1.35 by $0.08. The financial services provider achieved a net margin of 18.39% and a return on equity of 10.82%. The reported revenue during the quarter was $661.00 million, which fell short of the anticipated $687.53 million. Compared to the same quarter last year, when earnings were $1.46 per share, analysts predict an average earnings per share of 5.83 for the current year.

Analyst Insights

Recently, several research analysts have provided their insights regarding WBS shares. UBS Group commenced their coverage on Webster Financial, highlighting a “buy” rating with a price target of $76.00. Wells Fargo & Company upgraded the stock from “equal weight” to “overweight” and revised their price target from $70.00 to $75.00. StockNews.com also upgraded their rating from “sell” to “hold.” Furthermore, Wedbush increased their price objective from $52.00 to $59.00 while maintaining a “neutral” rating. Finally, Royal Bank of Canada raised their price target from $66.00 to $68.00, reaffirming an “outperform” rating. So far, three analysts have given a hold recommendation while nine have rated it as a buy, leading to an overall average rating categorized as a “Moderate Buy” with a consensus target price of $62.08.

Insider Transactions

In related news, insider Charles L. Wilkins sold 5,000 shares of Webster Financial on November 19th for an average price of $59.50, totaling $297,500.00. Following this transaction, Wilkins retains 33,657 shares valued at $2,002,591.50, marking a 12.93% decrease in ownership. Insider Daniel Bley sold 500 shares on November 29th at an average price of $61.91, resulting in a total sale of $30,955.00. After this transaction, Bley owns 17,279 shares worth approximately $1,069,742.89, reflecting a 2.81% ownership decrease. Over the past three months, insiders have divested a total of 25,287 shares valued at $1,485,050, with insiders holding 0.88% of the company’s stock.

Company Overview

Webster Financial Corporation operates as the bank holding company for Webster Bank, providing a wide array of financial products and services to individuals, families, and businesses across the United States. The company operates through three main segments: Commercial Banking, HSA Bank, and Consumer Banking.

Webster, Dividend, Finance