“We are maintaining our Neutral rating on shares of WBS with the stock trading at a premium to peers on forward P/E 2019 (12.1x vs. 11.2x) and price-to-tangible book (1.9x vs. 1.7x). Webster’s commercial banking and HSA units continue to produce strong growth. With an 85% loan-to-deposit ratio, >70% of loans pricing on a floating or periodic basis, and 0.80% cost of interest-bearing liabilities, the bank reaped the benefits from the Fed’s rate hiking agenda. Fed now likely to cut the Fed Funds rate as early as next week, Webster has started to pare back its asset sensitivity through purchases of investment securities and residential mortgages. Consequently, we have two Fed Funds cuts in our model and now expect NIM compression over the next few quarters.”
According to TipRanks.com, Zwick is a 1-star analyst with an average return of -1.9% and a 43.3% success rate. Zwick covers the Financial sector, focusing on stocks such as Atlantic Union Bankshares Corporation, The First Of Long Island Corp, and Provident Financial Services.
Webster Financial has an analyst consensus of Moderate Buy, with a price target consensus of $53.75, which is a 9.8% upside from current levels. In a report issued on July 9, UBS also maintained a Hold rating on the stock with a $47 price target.
Based on Webster Financial’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $98.65 million. In comparison, last year the company had a net profit of $81.46 million.
Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock.
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Webster Financial Corp. operates as a holding company for Webster Bank NA. It engages in providing financial services to individuals, families and businesses. It offers equipment financing, commercial real estate lending and asset-based lending services.