WBS Should I Buy
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Webster Financial Corp (WBS) is not a strong buy for a beginner, long-term investor at this time. The stock is currently under acquisition by Banco Santander, which limits its upside potential as the acquisition price is already set at $75.59 per share. Additionally, hedge funds are selling, and analysts have downgraded the stock post-acquisition announcement. While the company's recent financial performance is strong, the lack of significant upside and the acquisition-related uncertainty make it a hold rather than a buy.
The technical indicators are mixed. The MACD is positive but contracting, RSI is neutral at 55.953, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The current price of $71.11 is above the pivot level of $70.288, with resistance levels at $73.545 and $75.557. However, the stock's acquisition limits its technical upside.
Strong financial performance in Q4 2025, with revenue up 12.87% YoY and net income up 44.80% YoY.
Acquisition by Banco Santander provides a clear exit strategy for shareholders at $75.59 per share.
Hedge funds are selling, with a significant increase of 3232.90% in selling activity over the last quarter.
Analysts have downgraded the stock post-acquisition announcement, with price targets aligning closely to the acquisition price.
Limited upside potential due to acquisition price cap.
Investigation into the fairness of the acquisition deal by Monteverde & Associates.
Webster Financial delivered strong Q4 2025 results, with revenue increasing by 12.87% YoY to $737.68 million and net income rising by 44.80% YoY to $248.70 million. EPS also grew significantly by 53.47% YoY to $1.55, showcasing robust growth trends.
Analysts have downgraded the stock to 'Hold' or 'Equal Weight' following the acquisition announcement. Price targets have been adjusted to align with the acquisition price of $75.59, with no significant upside expected. Recent downgrades include Wells Fargo, Barclays, and Truist.
