Albert Jen-Wen Wang, Chief Accounting Officer at Webster Financial Corp (NYSE:WBS), recently sold 4,000 shares of the company's common stock. The shares were sold at an average price of $52.4311, totaling approximately $209,724. Following this transaction, Wang holds 14,273 shares in the company. This sale was disclosed in a filing with the Securities and Exchange Commission.
In other recent news, Webster Financial Corporation demonstrated strong performance in its third-quarter earnings report. The company's deposits rose by 3.6%, loans increased by 0.7%, and the total asset growth reached $79 billion. The adjusted EPS stood at $1.34, while the CET1 ratio exceeded its 11% target. RBC Capital Markets reaffirmed its Outperform rating for the bank and raised its price target from $57 to $62, reflecting confidence in Webster Financial's strategy and execution.
Webster Financial also provided forecasts for the fourth quarter of 2024, anticipating a loan growth of 1% to 1.5%, and a 1% decline in deposits due to seasonal factors. The company projects Q4 net interest income to be between $590 million and $600 million, and foresees a loan growth around 5% for 2025. Despite a slight increase in non-accrual loans and net charge-offs rising to $36 million, the company expects credit quality to improve by the first half of 2025. Lastly, Webster Financial is preparing for its assets to grow to $100 billion over the next 3-4 years.
InvestingPro Insights
As Webster Financial Corp's Chief Accounting Officer Albert Jen-Wen Wang reduces his stake, investors might be interested in a broader financial perspective of the company. According to InvestingPro data, Webster Financial Corp currently has a market capitalization of $8.91 billion and trades at a P/E ratio of 11.8, suggesting a relatively modest valuation compared to industry peers.
One of the InvestingPro Tips highlights that Webster Financial has maintained dividend payments for 38 consecutive years, a testament to the company's financial stability and commitment to shareholder returns. This consistency is particularly noteworthy in the banking sector, where dividend sustainability can be a key indicator of financial health. The current dividend yield stands at 3.11%, which may be attractive to income-focused investors.
Despite the recent insider sale, another InvestingPro Tip indicates that analysts predict the company will be profitable this year. This positive outlook is supported by the company's operating income margin of 47.59% for the last twelve months, showcasing strong operational efficiency.
It's worth noting that InvestingPro offers 13 additional tips for Webster Financial Corp, providing a more comprehensive analysis for investors seeking deeper insights into the company's financial position and future prospects.
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