Is Webster Financial a Buy After Investment Firm Compass Wealth Made the Stock Its Top Holding?

Core Insights - Compass Wealth Management LLC initiated a new position in Webster Financial, purchasing 96,518 shares valued at approximately $31.84 million, increasing its total reportable holdings to 148 positions [1][6]. Company Overview - Webster Financial reported a trailing twelve-month (TTM) revenue of $2.72 billion and a net income of $830.61 million, with a dividend yield of 2.8% [3]. - As of October 30, 2025, Webster Financial's share price was $56.59, reflecting a 9% increase over the past year, although it underperformed the S&P 500 by 8 percentage points [2][3]. Financial Performance - In the third quarter of 2025, Webster Financial achieved revenue of $732.6 million, up from $647.6 million in 2024, indicating strong growth [6]. - The diluted earnings per share (EPS) for Q3 was $1.54, an increase from $1.10 in the previous year, showcasing consistent growth in both revenue and EPS throughout 2025 [7][9]. Business Model - Webster Financial operates as a regional banking institution with a diversified business model that includes commercial banking, health savings account administration, and retail financial services [5][8]. - The company serves a wide range of customer segments, including individuals, families, small to mid-sized businesses, and employers, focusing on commercial clients and HSA account holders [8]. Investment Appeal - The reasonable price-to-earnings ratio of about 11, combined with strong sales growth and rising EPS, suggests that Webster Financial is a compelling investment opportunity for long-term holding [9].