Webster Financial Corp. (NYSE: WBS)’s stock price has soared by 2.03 in relation to previous closing price of 47.82. Nevertheless, the company has seen a gain of 1.88% in its stock price over the last five trading days. seekingalpha.com reported 2024-07-19 that Webster Financial Corporation stock was downgraded to “hold” in January after a 41% spike, but has since dropped 16.8%, and is now down some. Despite weak financial results in Q1 2024, shares are attractively priced on a relative basis, with low trading multiples compared to similar firms. With asset quality mixed and shares not yet cheap enough on an absolute basis, the stock isn’t ready for an upgrade just yet, though it’s inching closer that way.
Is It Worth Investing in Webster Financial Corp. (NYSE: WBS) Right Now?
The price-to-earnings ratio for Webster Financial Corp. (NYSE: WBS) is above average at 9.98x. The 36-month beta value for WBS is also noteworthy at 1.29. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 1 rating it as “overweight,” 8 rating it as “hold,” and 2 rating it as “sell.”
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The public float for WBS is 169.82M, and at present, short sellers hold a 1.94% of that float. The average trading volume of WBS on July 23, 2024 was 1.32M shares.
WBS’s Market Performance
WBS’s stock has seen a 1.88% increase for the week, with a 19.26% rise in the past month and a 5.17% gain in the past quarter. The volatility ratio for the week is 3.51%, and the volatility levels for the past 30 days are at 2.79% for Webster Financial Corp. The simple moving average for the last 20 days is 9.12% for WBS’s stock, with a simple moving average of 7.06% for the last 200 days.
Analysts’ Opinion of WBS
Many brokerage firms have already submitted their reports for WBS stocks, with Barclays repeating the rating for WBS by listing it as a “Overweight.” The predicted price for WBS in the upcoming period, according to Barclays is $70 based on the research report published on March 08, 2024 of the current year 2024.
JP Morgan, on the other hand, stated in their research note that they expect to see WBS reach a price target of $65, previously predicting the price at $60. The rating they have provided for WBS stocks is “Overweight” according to the report published on January 24th, 2024.
BofA Securities gave a rating of “Buy” to WBS, setting the target price at $60 in the report published on January 11th of the current year.
WBS Trading at 11.01% from the 50-Day Moving Average
After a stumble in the market that brought WBS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -8.62% of loss for the given period.
Volatility was left at 2.79%, however, over the last 30 days, the volatility rate increased by 3.51%, as shares surge +19.41% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +6.27% upper at present.
During the last 5 trading sessions, WBS rose by +1.88%, which changed the moving average for the period of 200-days by +27.16% in comparison to the 20-day moving average, which settled at $45.11. In addition, Webster Financial Corp. saw -3.88% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at WBS starting from CIULLA JOHN R, who sale 8,000 shares at the price of $48.04 back on Jul 15 ’24. After this action, CIULLA JOHN R now owns 237,049 shares of Webster Financial Corp., valued at $384,314 using the latest closing price.
BLEY DANIEL, the Chief Risk Officer of Webster Financial Corp., sale 498 shares at $42.11 during a trade that took place back on Jun 04 ’24, which means that BLEY DANIEL is holding 25,992 shares at $20,971 based on the most recent closing price.
Stock Fundamentals for WBS
Current profitability levels for the company are sitting at:
- 0.41 for the present operating margin
- 0.87 for the gross margin
The net margin for Webster Financial Corp. stands at 0.25. The total capital return value is set at 0.04. Equity return is now at value 10.03, with 1.13 for asset returns.
Based on Webster Financial Corp. (WBS), the company’s capital structure generated 0.36 points at debt to capital in total, while cash flow to debt ratio is standing at 0.21. The debt to equity ratio resting at 0.56. The interest coverage ratio of the stock is 1.26.
Currently, EBITDA for the company is 36.21 million with net debt to EBITDA at 4.02. When we switch over and look at the enterprise to sales, we see a ratio of 3.55. The receivables turnover for the company is 1.04for trailing twelve months and the total asset turnover is 0.04. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.05.
Conclusion
In summary, Webster Financial Corp. (WBS) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
