Webster Financial logged a -8.21% change during today's morning session, and is now trading at a price of $45.25 per share. The S&P 500 index moved -0.4% and the Nasdaq posted a -0.35% change.
Webster Financial shares moved -14.76% over the last 52 weeks, with a high of $58.56 and a low of $39.77. During this time, the stock lagged the S&P 500 index by -7.96%. As of January 2022, the company's 50-day average price is $50.67. Webster Financial Corporation is the banking holding company for Webster Bank, a National Association that provides a variety of banking, investment, and financial services to individuals, families, and businesses in the United States. The mid-cap Finance company is based in Stamford, CT. Webster Financial has returned a 3.25% dividend yield over the last 12 months.
Compared to the Finance sector's average of 14.34, Webster Financial has a trailing twelve month P/E ratio of 12.16 and, according to its EPS guidance of 7.4, an expected P/E ratio of 6.11. Webster Financial's PEG ratio is 0.32 based on its 38.0% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by Webster Financial's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 0.93, which still suggests that company's shares are possibly undervalued.
Furthermore, Webster Financial is likely undervalued in terms of its equity because its P/B ratio is 1.058 compared to its sector average of 1.57. The company's shares are currently trading -27.36% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 3.86 * 44.67) = $62.29
10 analysts are following Webster Financial and have set target prices ranging from $55.0 to $75.0 per share. On average, they have given the company a rating of buy. At the current price of $45.25, WBS is trading -30.33% away from its average analyst target price of $64.95 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an average amount of shares sold short since 4% of the company's shares are tied to short positions. Institutions own 88% of Webster Financial's shares, while the insider ownership rate stands at 1%.
