STAMFORD, Conn.—Christopher J. Motl, President of Commercial Banking at Webster Financial Corp (NYSE:WBS), recently sold 6,000 shares of the company's common stock. The shares were sold at an average price of $55.952, totaling approximately $335,712. Following this transaction, Motl holds 49,491 shares directly. Additionally, he has indirect ownership of 8,357.476 shares through a 401(k) plan. The transaction was disclosed in a filing with the Securities and Exchange Commission.
In other recent news, Webster Financial Corporation has announced strong third-quarter earnings with net interest income and margin trends exceeding expectations. The company's total asset growth reached $79 billion, with deposits growing by 3.6% and loans increasing by 0.7%. The firm's CET1 ratio exceeded its 11% target, while the efficiency ratio remained at 45%. Webster Financial has also declared its latest quarterly dividends for common and preferred stockholders.
RBC Capital Markets raised Webster Financial's price target to $62 from $57, maintaining an Outperform rating. This adjustment follows Webster's robust third-quarter results and reflects confidence in the bank's strategy and execution.
Webster Financial anticipates a loan growth of 1% to 1.5% in Q4 and expects a 1% decline in deposits due to seasonal factors. The company 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.
InvestingPro Insights
While Christopher J. Motl's recent sale of Webster Financial Corp (NYSE:WBS) shares might raise eyebrows, a closer look at the company's performance and market position reveals a more nuanced picture. According to InvestingPro data, Webster Financial has demonstrated strong returns recently, with a 33.87% price total return over the past month and an impressive 54.61% return over the last year.
The company's financial health appears robust, with a market capitalization of $9.89 billion and a price-to-earnings ratio of 13.15, suggesting a relatively attractive valuation compared to industry peers. Moreover, Webster Financial has maintained dividend payments for 38 consecutive years, as highlighted by an InvestingPro Tip, indicating a commitment to shareholder returns.
Despite the recent insider sale, there are positive signals for investors. Another InvestingPro Tip notes that analysts predict the company will be profitable this year, which aligns with the reported operating income margin of 47.59% for the last twelve months. This profitability, coupled with the stock's current price at 95.74% of its 52-week high, suggests potential for further growth.
It's worth noting that InvestingPro offers 10 additional tips for Webster Financial, providing a more comprehensive analysis for investors seeking deeper insights. These tips, along with real-time metrics, can be invaluable for understanding the full picture beyond insider transactions.
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