Jefferies took its Webster Financial [WBS] rating to the equivalent of Buy from Hold, and the price target to $52.0, in a research note dated 2021-01-07. That figure represents around a 13.12% premium from where the company’s shares closed on Wednesday. Some new analysts also started their coverage, with RBC Capital Mkts’s analysts assigning the shares to “an Outperform” rating in a research note to investors issued in late June. Meanwhile, Compass Point had lowered its rating on WBS to “Neutral” from the earlier “Buy”, in a research note produced for clients April 22, 2020. In addition, there was an upgrade from Raymond James on April 06, 2020. The rater changed WBS from “a Mkt perform” to “a Strong buy”.
Is Webster Financial Corporation [NYSE:WBS] a Good Buy Right Now?
It should be noted that WBS technical indicators for short, intermediate as well as long term progress have placed an overall average of 100% as Buy. The average signal changed from 100% Buy in the last week and compares with 100% Buy in the past month. Data from Webster Financial Corporation’s Trend Spotter indicated that the signals were Strongest. The stock current average is 0.53 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 0.53 million shares while the medium term average advocated for 100% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 0.55 million shares.
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WBS Price Performance
On Wall Street, Webster Financial Corporation [NYSE:WBS] finished Wednesday’s session up 8.40% at $45.96. The stock went up to $46.97 at the same session while its lowest single-day price was $43.53. In the last five days, it saw a rise of about 10.24%, Webster Financial Corporation shares gained by almost 9.04% since the beginning of the year. However, the share price has dropped to as low as -14.25% below its one year high. On 01/06/21, the company shares recorded $46.97, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $41.07. The company’s shares have declined by -11.89% in the past year. The 50-day SMA achieved is $38.81 while the 200-day SMA is $29.86. Volume gained to 0.99 million from 0.37 million in the previous session.
Webster Financial Corporation [WBS] Valuation Measures
Notably, Webster Financial Corporation [WBS] stock cannot be classified as a good candidate in the listing of underestimated low-priced Banks – Regional companies to purchase soonest possible with the prevailing 12-month PE ratio of 17.22. The measure means the stock is exchanging at a premium as compared to the 11.75x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 3.95 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 2.42 which means WBS serves an unattractive investment opportunity compared to its competitors.
WBS Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 44.00 level, and in case of violation of this particular level, it will cause more drop to 42.05 level. On the upper level, 48.93 is still the key resistance. The stock may increase to the subsequent resistance at 47.44. The Relative Strength Index (RSI) pinned on the 14-day chart is 72.64, implying an overbought technical stance while the MACD stands at 0.97, meaning the price will decrease in the next trading period. Percent R indicator moved to 16.86%, implying bullish price movement. Stochastic %K at 63.01% suggest selling the stock.
What is the short interest in Webster Financial Corporation?
Short interest in the Webster Financial Corporation stock has plunged, decreasing by -0.16 million shares to a total 1.8 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020, stand at 1.64 million, data from Yahoo Finance shows. The increase of 8.89% suggests the stock saw some increased bearish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 2.30% of the overall float for the stock.
Webster Financial Corporation’s Biggest Shareholders: Who Owns Webster Financial Corporation [WBS]?
Filings by T. Rowe Price Associates, Inc. showed that the firm now holds a total of 12,715,811 shares or roughly 14.10% of the outstanding WBS shares. This means their shares have reduced by -12,313 from the 12,715,811 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, The Vanguard Group, Inc. updated stake is worth $309,165,325. Details in the latest 13F filings reveal that BlackRock Fund Advisors disposed off their -4.87% stake valued at $266,428,261 while Macquarie Investment Management B added theirs at $137,636,454. During the last quarter, BlackRock Fund Advisors liquidated -360,068 of its shares in Webster Financial Corporation while Macquarie Investment Management B bought 122,044 shares. The AllianceBernstein LP’s holdings currently number 3,175,715 shares at $145955861.4. According to the firm’s last 13F report, Wasatch Advisors, Inc. shares in the company at filing stood at 3,016,713 shares, roughly $114,152,420.
WBS Earnings Forecast For The Current Quarter
Webster Financial Corporation [WBS] is expected to report weak earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $228.36M and an earnings per share of $0.69 for Dec 2020. Looking further ahead, the company is expected to report revenue of $224.93M at an EPS of $0.77 for Mar 2021. The estimates represent downside of -1.60% and 26.78% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
WBS Earnings Estimates For The Current Year
For the financial year, Webster Financial Corporation [NYSE:WBS] is expected to bring in revenue of $897.55M. The returns are nearly $-57.58 million lower than the company’s actual revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 2.4, lower than that of FY19 by -$1.66. Estimates put this year’s earnings growth at -40.90%, 30.40% for the next, and at an annual 19.40% over the next 5-year period. As for sales, forecasts are for a decrease of -6.00% in the current fiscal year and a further -1.60% over the following year.