Webster Financial Corp (NYSE:WBS) Chairman and CEO John R. Ciulla has sold a total of 8,000 shares of the company's common stock over two consecutive days, transactions that have amounted to over $384,000.
On September 18, Ciulla sold 5,584 shares at a weighted average price of $48.0062, netting approximately $268,066. The price range for these shares was from $48.00 to $48.035. Following this transaction, his direct ownership in the company stood at 231,465 shares.
The next day, on September 19, he sold an additional 2,416 shares at a weighted average price of $48.1212, with total proceeds of around $116,260. These shares were sold at prices ranging from $48.00 to $48.17. After this sale, Ciulla's direct holdings decreased to 229,049 shares.
These sales were conducted under a Rule 10b5-1 trading plan, which was adopted by Ciulla on February 13, 2024. Such plans allow company insiders to establish pre-arranged plans to sell stocks at a predetermined time to avoid accusations of insider trading.
Aside from these sales, the report also disclosed that Ciulla holds 16,351.5050 shares indirectly through a 401(k) Plan.
The transactions were reported in a Form 4 filed with the Securities and Exchange Commission on September 20, 2024, with all details provided as per regulatory requirements.
In other recent news, Webster Financial Corporation has experienced some significant developments. Morgan Stanley downgraded the company's stock to Equalweight from Overweight, citing concerns over the bank's net interest income prospects due to slower loan growth and potential rate cuts. The firm also noted an increase in classified and nonperforming loans, indicating a deterioration in the bank's credit quality. Despite these concerns, Morgan Stanley increased its price target for Webster Financial to $57.00, up from $54.00.
Webster Financial reported solid growth in its second-quarter results for 2024, with adjusted earnings per share standing at $1.26. The company also noted an increase in core deposits and loans and anticipates a loan growth of 4-5% and deposit growth around 5% for the full year. However, RBC Capital reduced its price target for the company to $51 from $54, while maintaining an Outperform rating, following the release of these results and a revised outlook for 2024 that anticipates slower balance sheet and revenue growth.
These are recent developments that provide investors with insights into the bank's potential risks, growth trajectory, and financial health. It's important to note that these assessments and projections come from Morgan Stanley and RBC Capital, and may not necessarily indicate the company's future performance.
InvestingPro Insights
Amidst the news of Webster Financial Corp's (NYSE:WBS) Chairman and CEO John R. Ciulla selling shares, investors may be curious about the company's current financial health and market performance. According to InvestingPro data, Webster Financial has a market capitalization of $8.25 billion, with a Price to Earnings (P/E) ratio of 10.41, indicating a potentially undervalued stock compared to earnings. The company's Price to Book (P/B) ratio stands at 0.97 as of the last twelve months ending Q2 2024, suggesting that the stock might be trading at nearly its book value.
InvestingPro Tips reveal that Webster Financial has a high shareholder yield and has maintained dividend payments for an impressive 38 consecutive years. This consistent return to shareholders could be a sign of the company's commitment to returning value, which is underscored by a dividend yield of 3.31% as of the last dividend's ex-date on July 29, 2024. Additionally, the company has experienced a strong return over the last three months, with a price total return of 19.18%, reflecting positively on investor sentiment and stock performance.
Investors looking for deeper insights can find additional InvestingPro Tips for Webster Financial Corp, which provide further analysis and metrics that could influence investment decisions. Currently, there are 14 more tips available on InvestingPro, offering a comprehensive look at the company's financials and market prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.