Is Webster Financial Stock a Good Investment?
Webster Financial Investment Advice | WBS |
- Examine Webster Financial's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Webster Financial's leadership team and their track record. Good management can help Webster Financial navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Regional Banks space and any emerging trends that could impact Webster Financial's business and its evolving consumer preferences.
- Compare Webster Financial's performance and market position to its competitors. Analyze how Webster Financial is positioned in terms of product offerings, innovation, and market share.
- Check if Webster Financial pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Webster Financial's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Webster Financial stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Webster Financial is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Webster Financial Stock
Researching Webster Financial's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 88.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.19. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Webster Financial has Price/Earnings To Growth (PEG) ratio of 1.93. The entity last dividend was issued on the 1st of November 2024. The firm had 2:1 split on the 15th of April 1998.
To determine if Webster Financial is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Webster Financial's research are outlined below:
| Webster Financial had very high historical volatility over the last 90 days | |
| Webster Financial has a poor financial position based on the latest SEC disclosures | |
| Over 88.0% of the company outstanding shares are owned by institutional investors | |
| On 12th of November 2024 Webster Financial paid $ 0.4 per share dividend to its current shareholders | |
| Latest headline from gurufocus.com: Webster Financial Corp Stock Price Up 3.02 percent on Nov 25 |
Webster Financial Quarterly Liabilities And Stockholders Equity |
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Webster Financial uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Webster Financial. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Webster Financial's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 18th of April 2024 Upcoming Quarterly Report | View | |
| 18th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 28th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Webster Financial's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Webster Financial's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2010-04-22 | 2010-03-31 | -0.12 | -0.08 | 0.04 | 33 | ||
2011-10-14 | 2011-09-30 | 0.4 | 0.45 | 0.05 | 12 | ||
2010-10-15 | 2010-09-30 | 0.17 | 0.22 | 0.05 | 29 | ||
2008-10-21 | 2008-09-30 | 0.22 | 0.17 | -0.05 | 22 | ||
1997-10-14 | 1997-09-30 | 0.48 | 0.53 | 0.05 | 10 | ||
1996-10-18 | 1996-09-30 | 0.41 | 0.46 | 0.05 | 12 | ||
1996-07-17 | 1996-06-30 | 0.38 | 0.43 | 0.05 | 13 | ||
2008-04-22 | 2008-03-31 | 0.57 | 0.51 | -0.06 | 10 |
Know Webster Financial's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Webster Financial is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Webster Financial backward and forwards among themselves. Webster Financial's institutional investor refers to the entity that pools money to purchase Webster Financial's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Macquarie Group Ltd | 2024-06-30 | 3.1 M | Earnest Partners Llc | 2024-06-30 | 3.1 M | Geode Capital Management, Llc | 2024-09-30 | 3 M | T. Rowe Price Investment Management,inc. | 2024-09-30 | 2.8 M | Bank Of America Corp | 2024-06-30 | 2.6 M | Bank Of New York Mellon Corp | 2024-06-30 | 2.4 M | Davis Asset Management, L.p. | 2024-09-30 | 2 M | Alliancebernstein L.p. | 2024-06-30 | 2 M | Norges Bank | 2024-06-30 | 2 M | Vanguard Group Inc | 2024-09-30 | 18.1 M | Blackrock Inc | 2024-06-30 | 15.5 M |
Webster Financial's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 10.77 B.Market Cap |
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Webster Financial's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | 0.01 | |
| Return On Capital Employed | 0.01 | 0.01 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | 0.10 | 0.07 |
Determining Webster Financial's profitability involves analyzing its financial statements and using various financial metrics to determine if Webster Financial is a good buy. For example, gross profit margin measures Webster Financial's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Webster Financial's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Webster Financial's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Webster Financial. Check Webster Financial's Beneish M Score to see the likelihood of Webster Financial's management manipulating its earnings.
Evaluate Webster Financial's management efficiency
Webster Financial has Return on Asset of 0.0102 % which means that on every $100 spent on assets, it made $0.0102 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0893 %, implying that it generated $0.0893 on every 100 dollars invested. Webster Financial's management efficiency ratios could be used to measure how well Webster Financial manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Webster Financial's Return On Tangible Assets are comparatively stable compared to the past year. Return On Assets is likely to gain to 0.01 in 2024, whereas Return On Capital Employed is likely to drop 0.01 in 2024. At this time, Webster Financial's Total Assets are comparatively stable compared to the past year. Non Current Assets Total is likely to gain to about 91.7 B in 2024, whereas Total Current Assets are likely to drop slightly above 3.4 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 50.59 | 55.67 | |
| Tangible Book Value Per Share | 34.09 | 48.82 | |
| Enterprise Value Over EBITDA | 17.79 | 20.05 | |
| Price Book Value Ratio | 1.00 | 1.54 | |
| Enterprise Value Multiple | 17.79 | 20.05 | |
| Price Fair Value | 1.00 | 1.54 | |
| Enterprise Value | 5 B | 2.9 B |
Webster Financial's management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Dividend Yield 0.0259 | Forward Dividend Yield 0.0259 | Forward Dividend Rate 1.6 | Beta 1.257 |
Basic technical analysis of Webster Stock
As of the 26th of November, Webster Financial maintains the Market Risk Adjusted Performance of 0.1836, downside deviation of 1.79, and Mean Deviation of 1.84. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Webster Financial, as well as the relationship between them. Please check out Webster Financial information ratio, as well as the relationship between the potential upside and kurtosis to decide if Webster Financial is priced fairly, providing market reflects its latest price of 62.02 per share. Given that Webster Financial has jensen alpha of 0.1504, we strongly advise you to confirm Webster Financial's prevalent market performance to make sure the company can sustain itself at a future point.Webster Financial's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Webster Financial insiders, such as employees or executives, is commonly permitted as long as it does not rely on Webster Financial's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Webster Financial insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Webster Financial's Outstanding Corporate Bonds
Webster Financial issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Webster Financial uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Webster bonds can be classified according to their maturity, which is the date when Webster Financial has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| US947890AJ87 Corp BondUS947890AJ87 | View |
Understand Webster Financial's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Webster Financial's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1254 | |||
| Market Risk Adjusted Performance | 0.1836 | |||
| Mean Deviation | 1.84 | |||
| Semi Deviation | 1.45 | |||
| Downside Deviation | 1.79 | |||
| Coefficient Of Variation | 648.53 | |||
| Standard Deviation | 3.15 | |||
| Variance | 9.9 | |||
| Information Ratio | 0.1133 | |||
| Jensen Alpha | 0.1504 | |||
| Total Risk Alpha | (0.01) | |||
| Sortino Ratio | 0.1988 | |||
| Treynor Ratio | 0.1736 | |||
| Maximum Drawdown | 22.25 | |||
| Value At Risk | (2.69) | |||
| Potential Upside | 3.89 | |||
| Downside Variance | 3.22 | |||
| Semi Variance | 2.11 | |||
| Expected Short fall | (2.18) | |||
| Skewness | 3.4 | |||
| Kurtosis | 16.78 |
| Risk Adjusted Performance | 0.1254 | |||
| Market Risk Adjusted Performance | 0.1836 | |||
| Mean Deviation | 1.84 | |||
| Semi Deviation | 1.45 | |||
| Downside Deviation | 1.79 | |||
| Coefficient Of Variation | 648.53 | |||
| Standard Deviation | 3.15 | |||
| Variance | 9.9 | |||
| Information Ratio | 0.1133 | |||
| Jensen Alpha | 0.1504 | |||
| Total Risk Alpha | (0.01) | |||
| Sortino Ratio | 0.1988 | |||
| Treynor Ratio | 0.1736 | |||
| Maximum Drawdown | 22.25 | |||
| Value At Risk | (2.69) | |||
| Potential Upside | 3.89 | |||
| Downside Variance | 3.22 | |||
| Semi Variance | 2.11 | |||
| Expected Short fall | (2.18) | |||
| Skewness | 3.4 | |||
| Kurtosis | 16.78 |
Consider Webster Financial's intraday indicators
Webster Financial intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Webster Financial stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 19591.91 | |||
| Daily Balance Of Power | (0.65) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 62.17 | |||
| Day Typical Price | 62.12 | |||
| Price Action Indicator | (0.54) | |||
| Period Momentum Indicator | (0.80) |
Webster Financial Corporate Filings
F4 | 21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 8th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 17th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 12th of July 2024 Other Reports | ViewVerify |
Webster Stock media impact
Far too much social signal, news, headlines, and media speculation about Webster Financial that are available to investors today. That information is available publicly through Webster media outlets and privately through word of mouth or via Webster internal channels. However, regardless of the origin, that massive amount of Webster data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Webster Financial news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Webster Financial relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Webster Financial's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Webster Financial alpha.
Webster Financial Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Webster Financial can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Webster Financial Historical Investor Sentiment
Investor biases related to Webster Financial's public news can be used to forecast risks associated with an investment in Webster. The trend in average sentiment can be used to explain how an investor holding Webster can time the market purely based on public headlines and social activities around Webster Financial. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Webster Financial's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Webster Financial and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Webster Financial news discussions. The higher the estimate score, the more favorable the investor's outlook on Webster Financial.
Webster Financial Corporate Directors
| Mark Pettie | Independent Director | Profile | |
| Emlen CFA | Director Relations | Profile | |
| Laurence Morse | Independent Director | Profile | |
| William Whiston | Independent Director | Profile |
Already Invested in Webster Financial?
The danger of trading Webster Financial is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Webster Financial is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Webster Financial. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Webster Financial is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Webster Stock Analysis
When running Webster Financial's price analysis, check to measure Webster Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Webster Financial is operating at the current time. Most of Webster Financial's value examination focuses on studying past and present price action to predict the probability of Webster Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Webster Financial's price. Additionally, you may evaluate how the addition of Webster Financial to your portfolios can decrease your overall portfolio volatility.