Webster Financial (NYSE:WBS) Sees Unusually-High Trading Volume – Still a Buy?

Webster Financial Corporation (NYSE:WBS) saw unusually-strong trading volume on Wednesday . Approximately 2,021,280 shares changed hands during trading, a decline of 10% from the previous session’s volume of 2,253,510 shares.The stock last traded at $72.7060 and had previously closed at $71.95.

More Webster Financial News

Here are the key news stories impacting Webster Financial this week:

• Positive Sentiment: Definitive sale agreed: Webster will be acquired by Banco Santander in a transaction valued at about $12.3 billion. Webster shareholders will receive $48.75 in cash plus 2.0548 Santander American Depository Shares per Webster share (deal value reported around $75.59/share), with closing expected in H2 2026. Webster Financial Corporation Enters Into Merger Agreement With Banco Santander, S.A. for 12.3 Billion
• Neutral Sentiment: Deal valuation context — Zacks highlights the $75.59/share implied takeout and explains what the cash+stock structure means for holders (mix of immediate cash and Santander equity exposure). This frames potential upside/continuation risk for investors who keep shares through closing. WBS Agrees to $12.3B Buyout by SAN: What This Means for Investors
• Neutral Sentiment: Analyst stance shifted to reflect the takeout: Jefferies and Investec moved WBS to Hold with price targets (~$74–$75), citing a fair takeout valuation and limited near?term upside before deal close — useful for traders who expected post?announcement rerating. Hold Rating on Webster Financial Reflects Fair Takeout Valuation and Limited Upside Ahead of Santander Acquisition
• Neutral Sentiment: Market logistics: trading was briefly halted for WBS ahead of the announcement (normal for material M&A news); inclusion chatter (Russell 1000 coverage) may affect passive flows but is secondary to the takeover. Webster Financial (NYSE:WBS) Surfaces In Russell 1000 ETF Financial coverage
• Negative Sentiment: Shareholder litigation risk: multiple investor?rights firms (Halper Sadeh, Johnson Fistel, Ademi LLP and others) have launched investigations into whether Webster’s board obtained a fair price and fulfilled fiduciary duties — this raises the possibility of lawsuits that could delay closing or force concessions. WBS Stock Alert: Halper Sadeh LLC is Investigating Whether the Sale of Webster Financial Corporation is Fair to Shareholders
• Negative Sentiment: Additional law?firm probes: Johnson Fistel and Ademi LLP also announced investigations into fiduciary duty concerns related to the proposed Santander acquisition, increasing legal/settlement risk around the transaction. Johnson Fistel Investigates Webster Financial Corporation (WBS) Shareholders Rights Following Proposed Sale to Banco Santander

Wall Street Analyst Weigh In

Several brokerages have commented on WBS. JPMorgan Chase & Co. raised their price objective on Webster Financial from $70.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, December 16th. Stephens reissued an “equal weight” rating and issued a $73.00 price target on shares of Webster Financial in a research note on Wednesday. Keefe, Bruyette & Woods upped their price objective on shares of Webster Financial from $75.00 to $77.00 and gave the stock an “outperform” rating in a research report on Monday, January 26th. Citigroup dropped their target price on shares of Webster Financial from $77.00 to $75.00 and set a “buy” rating on the stock in a research report on Monday, January 26th. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Webster Financial in a research note on Monday, December 29th. Eleven analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Webster Financial presently has an average rating of “Moderate Buy” and an average target price of $74.43.

Webster Financial Stock Up 0.4%

The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.40. The firm has a market capitalization of $11.65 billion, a PE ratio of 12.22, a price-to-earnings-growth ratio of 0.85 and a beta of 1.07. The business has a 50-day moving average price of $63.91 and a 200-day moving average price of $60.50.

Webster Financial (NYSE:WBS) last announced its quarterly earnings data on Friday, January 23rd. The financial services provider reported $1.59 EPS for the quarter, topping analysts’ consensus estimates of $1.52 by $0.07. Webster Financial had a return on equity of 11.10% and a net margin of 22.67%.The firm had revenue of $760.48 million for the quarter, compared to the consensus estimate of $731.95 million. During the same quarter last year, the business posted $1.43 earnings per share. Equities research analysts forecast that Webster Financial Corporation will post 5.88 earnings per share for the current fiscal year.

Webster Financial Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, February 19th. Shareholders of record on Monday, February 9th will be paid a dividend of $0.40 per share. The ex-dividend date of this dividend is Monday, February 9th. This represents a $1.60 dividend on an annualized basis and a yield of 2.2%. Webster Financial’s payout ratio is 27.07%.

Insiders Place Their Bets

In other news, CEO John R. Ciulla sold 8,000 shares of the firm’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $55.45, for a total transaction of $443,600.00. Following the completion of the sale, the chief executive officer owned 231,872 shares in the company, valued at $12,857,302.40. This trade represents a 3.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.54% of the stock is owned by insiders.

Institutional Investors Weigh In On Webster Financial

A number of institutional investors have recently modified their holdings of WBS. Versor Investments LP acquired a new position in Webster Financial during the 4th quarter worth about $434,000. First Eagle Investment Management LLC lifted its position in shares of Webster Financial by 9.9% during the fourth quarter. First Eagle Investment Management LLC now owns 227,302 shares of the financial services provider’s stock worth $14,306,000 after purchasing an additional 20,493 shares in the last quarter. Ethic Inc. grew its holdings in shares of Webster Financial by 57.6% in the fourth quarter. Ethic Inc. now owns 11,142 shares of the financial services provider’s stock valued at $701,000 after purchasing an additional 4,070 shares in the last quarter. International Assets Investment Management LLC acquired a new position in shares of Webster Financial in the fourth quarter valued at approximately $181,000. Finally, Sequoia Financial Advisors LLC increased its stake in Webster Financial by 51.7% during the 4th quarter. Sequoia Financial Advisors LLC now owns 11,878 shares of the financial services provider’s stock worth $748,000 after buying an additional 4,046 shares during the period. 85.58% of the stock is owned by institutional investors and hedge funds.

About Webster Financial

Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.

In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.