Webster Story

WBS -  USA Stock  

USD 55.85  0.28  0.50%

Webster Financial Profit Margin is relatively stable at the moment as compared to the past year. Webster Financial reported last year Profit Margin of 17.14. As of 04/20/2021, Return on Average Assets is likely to grow to 0.75, while Revenue Per Employee is likely to drop slightly above 348.3 K. While some baby boomers are getting worried about financial services space, it is reasonable to sum up Webster Financial Corp. We will evaluate why recent Webster Financial price moves suggest a bounce in May. In this post, I will also go over a few different drivers affecting Webster Financial's products and services, and explain how it may impact Webster Financial retail investors.
Published over two weeks ago
View all stories for Webster Financial | View All Stories
Reasons Webster Financial (NYSE:WBS) can excite retail investors
Webster Financial Corp's average rating is Buy from 11 analysts.
Our trade recommendation module provides unbiased trade advice that can be used to complement current average analyst sentiment on Webster Financial Corp. Our trade recommendation engine provides an advice for the entity potential to grow from the perspective of an investor's risk tolerance and investing horizon.

And What about dividends?

A dividend is the distribution of a portion of Webster Financial earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Webster Financial dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Webster one year expected dividend income is about $0.67 per share.
Webster Financial Preferred Dividends Income Statement Impact is relatively stable at the moment as compared to the past year. Webster Financial reported last year Preferred Dividends Income Statement Impact of 10.78 Million. As of 05/08/2021, Dividend Yield is likely to grow to 0.0244, while Payment of Dividends and Other Cash Distributions is likely to drop (100.5 M).
Last ReportedProjected for 2021
Preferred Dividends Income Statement Impact10.8 M11.8 M
Payment of Dividends and Other Cash Distributions-93.1 M-100.5 M
Dividend Yield 0.0218  0.0244 
Dividends per Basic Common Share 0.79  0.81 
Investing in stocks that pay dividends, such as stock of Webster Financial Corp, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Webster Financial must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Webster Financial. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Webster Financial's Liquidity

Webster Financial financial leverage refers to using borrowed capital as a funding source to finance Webster Financial Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Webster Financial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Webster Financial's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Webster Financial, but it might be worth checking our own buy vs. sell analysis

Breaking down Webster Financial Further

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Webster Financial has an asset utilization ratio of 4.22 percent. This connotes that the company is making $0.0422 for each dollar of assets. An increasing asset utilization means that Webster Financial Corp is more efficient with each dollar of assets it utilizes for everyday operations.
 2018 2019 2020 2021 (projected)
Cash and Equivalents329.5 M257.89 M263.1 M308.54 M
Total Assets27.61 B30.39 B32.59 B27.42 B

A growth case for Webster Financial

Latest Risk Adjusted Performance is up to 0.05. Price may fall again. Webster Financial Corp currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of -0.1. However, we advise investors to further question Webster Financial Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Webster Financial's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Webster Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Webster Financial

While many of the other players within the banks?regional industry are still a little expensive, even after the recent corrections, Webster Financial may offer a potential longer-term growth to retail investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither trade nor sell any shares of Webster Financial at this time. The Webster Financial Corp risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Webster Financial.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Webster Financial Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com