Navigating the Volatility of Webster Financial Corp.’s (WBS) Stock

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The stock of Webster Financial Corp. (WBS) has seen a -2.49% decrease in the past week, with a -5.01% drop in the past month, and a 2.03% flourish in the past quarter. The volatility ratio for the week is 2.29%, and the volatility levels for the past 30 days are at 2.99% for WBS. The simple moving average for the last 20 days is -2.94% for WBS’s stock, with a simple moving average of -5.01% for the last 200 days.

Is It Worth Investing in Webster Financial Corp. (NYSE: WBS) Right Now?

Webster Financial Corp. (NYSE: WBS) has a price-to-earnings ratio that is above its average at 9.64x. The stock has a 36-month beta value of 1.28. Opinions on the stock are mixed, with 2 analysts rating it as a “buy,” 1 as “overweight,” 8 as “hold,” and 2 as “sell.”

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The public float for WBS is 169.82M, and at present, short sellers hold a 1.90% of that float. On October 03, 2024, the average trading volume of WBS was 1.35M shares.

WBS) stock’s latest price update

Webster Financial Corp. (NYSE: WBS) has experienced a decline in its stock price by -1.18 compared to its previous closing price of 44.86. However, the company has seen a fall of -2.49% in its stock price over the last five trading days. businesswire.com reported 2024-09-18 that STAMFORD, Conn.–(BUSINESS WIRE)–Webster Lowers Prime Lending Rate to 8.00 Percent.

Analysts’ Opinion of WBS

Many brokerage firms have already submitted their reports for WBS stocks, with Morgan Stanley repeating the rating for WBS by listing it as a “Equal-Weight.” The predicted price for WBS in the upcoming period, according to Morgan Stanley is $57 based on the research report published on August 05, 2024 of the current year 2024.

Barclays, on the other hand, stated in their research note that they expect to see WBS reach a price target of $70. The rating they have provided for WBS stocks is “Overweight” according to the report published on March 08th, 2024.

JP Morgan gave a rating of “Overweight” to WBS, setting the target price at $65 in the report published on January 24th of the current year.

WBS Trading at -3.23% 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 -16.97% of loss for the given period.

Volatility was left at 2.99%, however, over the last 30 days, the volatility rate increased by 2.29%, as shares sank -3.04% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.65% lower at present.

During the last 5 trading sessions, WBS fell by -2.49%, which changed the moving average for the period of 200-days by -16.63% in comparison to the 20-day moving average, which settled at $45.60. In addition, Webster Financial Corp. saw -12.67% 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 5,584 shares at the price of $48.01 back on Sep 18 ’24. After this action, CIULLA JOHN R now owns 231,465 shares of Webster Financial Corp., valued at $268,067 using the latest closing price.

CIULLA JOHN R, the Chairman and CEO of Webster Financial Corp., sale 2,416 shares at $48.12 during a trade that took place back on Sep 19 ’24, which means that CIULLA JOHN R is holding 229,049 shares at $116,261 based on the most recent closing price.

Stock Fundamentals for WBS

Current profitability levels for the company are sitting at:

  • 0.27 for the present operating margin
  • 0.88 for the gross margin

The net margin for Webster Financial Corp. stands at 0.22. The total capital return value is set at 0.03. Equity return is now at value 9.38, with 1.06 for asset returns.

Based on Webster Financial Corp. (WBS), the company’s capital structure generated 0.31 points at debt to capital in total, while cash flow to debt ratio is standing at 0.25. The debt to equity ratio resting at 0.45. The interest coverage ratio of the stock is 0.86.

Currently, EBITDA for the company is 36.21 million with net debt to EBITDA at 11.72. When we switch over and look at the enterprise to sales, we see a ratio of 2.75. The receivables turnover for the company is 2.96for trailing twelve months and the total asset turnover is 0.05. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.05.

Conclusion

To sum up, Webster Financial Corp. (WBS) has seen a mixed performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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