John R. Ciulla, Chairman and CEO of Webster Financial Corp (NYSE:WBS), sold 8,000 shares of the company's common stock on November 20, 2024. The shares were sold at an average price of $59.3337, amounting to a total transaction value of $474,669. This sale was conducted under a pre-established Rule 10b5-1 trading plan, which was adopted earlier this year on February 13, 2024.
Following this transaction, Ciulla holds 218,924 shares directly. Additionally, he maintains indirect ownership of 16,351.505 shares through a 401(k) plan. The transaction was part of a series of recent activities by Ciulla, which included other non-monetary transactions involving the disposition of shares.
In other recent news, Webster Financial Corporation has 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%. 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 common share and preferred stock dividends for Series F and G.
RBC Capital Markets raised Webster Financial's price target to $62 from $57, maintaining an Outperform rating. This adjustment follows Webster's robust third-quarter results and reflects confidence in the bank's strategy and execution. The company anticipates a loan growth of 1% to 1.5% in Q4 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.
InvestingPro Insights
While John R. Ciulla's recent sale of Webster Financial Corp (NYSE:WBS) shares might raise eyebrows, it's important to contextualize this transaction within the company's broader financial landscape. According to InvestingPro data, Webster Financial Corp boasts a market capitalization of $10.38 billion and a P/E ratio of 13.69, suggesting a relatively attractive valuation compared to industry peers.
InvestingPro Tips highlight that WBS has maintained dividend payments for an impressive 38 consecutive years, underscoring the company's commitment to shareholder returns. This consistency in dividend payments aligns with the company's stable financial position, despite Ciulla's recent stock sale.
Moreover, WBS is currently trading near its 52-week high, with a strong return over the last three months of 33.04%. This positive momentum indicates investor confidence in the company's prospects, potentially offsetting concerns about insider selling.
It's worth noting that analysts predict the company will be profitable this year, and WBS has indeed been profitable over the last twelve months. This profitability, combined with a dividend yield of 2.69%, presents an attractive proposition for value-oriented investors.
For those seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Webster Financial Corp, providing deeper insights into the company's financial health and market position.
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