STAMFORD, Conn.—Griffin James MI, the Head of Consumer Banking at Webster Financial Corp (NYSE:WBS), recently executed a stock sale valued at approximately $100,084, according to a regulatory filing. The transactions, completed on November 26, involved the sale of a total of 1,610 shares of common stock. The shares were sold at prices ranging from $62.15 to $62.20 each.
Following the sale, Griffin retains direct ownership of 11,273 shares. Additionally, he holds 5,177.548 shares indirectly through a 401(k) plan. These transactions are part of routine financial management for executives at publicly traded companies, providing insights into their stock holdings and investment strategies.
In other recent news, Webster Financial Corporation declared its latest quarterly dividends on common and preferred stock. The company's Board of Directors announced a quarterly cash dividend of $0.40 per share on its common stock. In addition, dividends were declared on its Series F and Series G Preferred Stock. Webster Financial also reported strong third-quarter earnings, with net interest income and margin trends exceeding expectations, total asset growth reaching $79 billion, and deposits growing by 3.6% and loans by 0.7%.
RBC Capital Markets upgraded Webster Financial's price target to $62 from $57, maintaining an Outperform rating, following the company's robust third-quarter results. The company anticipates a loan growth of 1% to 1.5% in Q4 and 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. Despite a slight increase in non-accrual loans and net charge-offs rising to $36 million from $33 million in the previous quarter, the company expects improvement in credit quality by the first half of 2025. The company remains committed to prudent capital management, focusing on organic growth and potential acquisitions.
InvestingPro Insights
Webster Financial Corp (NYSE:WBS) has been showing strong performance in recent months, which adds context to the recent stock sale by Griffin James MI. According to InvestingPro data, the company's stock has seen impressive returns, with a 22.19% price total return over the past month and a 34.1% return over the last three months. This upward trend is further emphasized by the fact that WBS is trading near its 52-week high, with the current price at 97.12% of that peak.
Despite the recent sale by the Head of Consumer Banking, there are several positive indicators for Webster Financial Corp. An InvestingPro Tip highlights that the company has maintained dividend payments for 38 consecutive years, demonstrating a commitment to shareholder returns. This is supported by a current dividend yield of 2.58%, which may be attractive to income-focused investors.
From a valuation perspective, WBS appears reasonably priced with a P/E ratio of 14.06, suggesting that the stock might not be overvalued despite its recent strong performance. The company's profitability is also noteworthy, with an operating income margin of 47.59% for the last twelve months as of Q3 2023.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights with 8 more tips available for Webster Financial Corp. These tips could provide valuable guidance on the company's financial health and future prospects.
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