WBS - Webster Financial: Not Banking On Further Appreciation (Rating Downgrade)

2024-01-29 17:05:54 ET

Summary

• Webster Financial Corporation stock has risen 41% in the past year, outperforming the S&P 500.
• The company's deposits and net interest income have grown, but non-interest income has decreased.
• Despite being a healthy institution, Webster Financial stock is now considered fairly valued and is downgraded to a "hold."

Over the past year, or close to it, I have been doing my utmost to become more focused on writing about financial companies, particularly regional banks. One of the firms that I ended up writing about in a bullish article that I published in July 2023 was Webster Financial Corporation ( WBS ), a bank holding company and financial holding company that engaged in many traditional banking and financial services products. At that time, I mentioned how far shares had fallen because of the banking crisis that began in March of that year. Even though shares had recovered nicely from the bottom, I believed that they offered tremendous upside potential. This was based on the idea that deposits were continuing to grow and that the overall revenue and profit side of the business was doing quite well....

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