Evans Javier L., Chief Human Resources Officer at Webster Financial Corp (NYSE:WBS), recently sold 10,137 shares of the company's common stock. The sale, which took place on November 6, 2024, was executed at an average price of $57.41 per share, totaling approximately $581,971. Following this transaction, Javier retains ownership of 22,657 shares of Webster Financial's common stock. Additionally, recent dividends have increased Javier's holdings by 195.359 shares since the last reported filing.
In other recent news, Webster Financial Corporation reported strong third-quarter earnings, with net interest income and margin trends exceeding expectations. The company's total asset growth reached $79 billion, with deposits growing by 3.6% and loans increasing by 0.7%. Additionally, the firm's CET1 ratio exceeded its 11% target, while the efficiency ratio remained at 45%.
Webster Financial also declared its latest quarterly dividends for common and preferred stockholders, with a cash dividend of $0.40 per share on its common stock and dividends on its preferred stock. RBC Capital Markets raised Webster Financial's price target to $62 from $57, maintaining an Outperform rating, reflecting confidence in the bank's strategy and execution.
For the fourth quarter, the company anticipates a loan growth of 1% to 1.5% and expects a 1% decline in deposits due to seasonal factors. Webster Financial also projects Q4 net interest income between $590 million and $600 million. Looking forward to 2025, the company forecasts a loan growth around 5% and is preparing for its assets to grow to $100 billion over the next 3-4 years. These are recent developments in the company's financial trajectory.
InvestingPro Insights
The recent stock sale by Webster Financial Corp's Chief Human Resources Officer comes at a time when the company's stock has shown significant momentum. According to InvestingPro data, Webster Financial has experienced a strong return of 33.87% over the last month and an impressive 54.61% over the past year. This robust performance aligns with an InvestingPro Tip highlighting the company's "significant return over the last week," suggesting a positive short-term trend for the stock.
Despite the recent insider sale, Webster Financial's financial health appears solid. The company boasts a P/E ratio of 13.15, indicating a relatively attractive valuation compared to industry peers. Moreover, an InvestingPro Tip notes that Webster Financial "has maintained dividend payments for 38 consecutive years," underscoring its commitment to shareholder returns. This is further supported by a current dividend yield of 2.66%, which may appeal to income-focused investors.
It's worth noting that while the company has shown strong stock performance, an InvestingPro Tip cautions that Webster Financial "suffers from weak gross profit margins." This could be a factor for investors to monitor in assessing the company's long-term profitability.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips on Webster Financial, providing a deeper insight into the company's financial position and market outlook.
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