James Mi Griffin, the Head of Consumer Banking at Webster Financial Corp (NYSE:WBS), recently sold a portion of his company stock. According to a filing with the Securities and Exchange Commission, Griffin disposed of 2,557 shares of common stock on November 6, 2024, at a price of $57.79 per share, totaling approximately $147,769.
Following this transaction, Griffin retains direct ownership of 12,883 shares of Webster Financial's common stock. In addition to his direct holdings, Griffin also maintains an indirect interest in 5,177.548 shares through a 401(k) plan.
These transactions are part of routine portfolio adjustments by executives and are closely monitored by investors for insights into the company's insider activities.
In other recent news, Webster Financial Corporation declared its latest quarterly dividends for common and preferred stockholders, with a cash dividend of $0.40 per common share and varying dividends for preferred stock. The company also reported strong third-quarter earnings, with total asset growth reaching $79 billion, deposits increasing by 3.6%, and loans growing by 0.7%. The firm's CET1 ratio exceeded its 11% target, while the efficiency ratio remained at 45%.
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. 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. These are among the recent developments that underline the steady performance and future growth potential of Webster Financial Corporation.
InvestingPro Insights
While James Mi Griffin's recent stock sale might raise eyebrows, it's crucial to consider Webster Financial's broader financial picture. According to InvestingPro data, the company boasts a market capitalization of $9.89 billion and a P/E ratio of 13.15, suggesting a relatively attractive valuation compared to industry peers.
InvestingPro Tips highlight that Webster Financial has maintained dividend payments for an impressive 38 consecutive years, demonstrating a commitment to shareholder returns. This consistency aligns with the company's solid financial footing, as evidenced by its profitability over the last twelve months.
Furthermore, Webster Financial has shown strong market performance, with a significant 54.61% price total return over the past year. This robust growth is complemented by a 33.87% return in the last month alone, indicating positive momentum that may interest investors despite the insider sale.
It's worth noting that InvestingPro offers 10 additional tips for Webster Financial, providing a more comprehensive analysis for those seeking deeper insights into the company's prospects. These additional tips can be particularly valuable in contextualizing executive stock transactions and overall company performance.
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