Algebris UK Ltd Buys 205,501 Shares of Webster Financial Corporation (NYSE:WBS)

Key Points

• Algebris UK Ltd has significantly increased its stake in Webster Financial Corporation by 122.9%, owning 372,647 shares after acquiring an additional 205,501 shares in Q1.
• Webster Financial reported better-than-expected earnings, with an EPS of $1.52, surpassing analysts' estimates of $1.43, and a year-over-year revenue increase of 16.5%.
• The company announced a $700 million stock buyback plan, which represents up to 8.7% of its outstanding shares, indicating confidence in the stock's valuation.

Algebris UK Ltd increased its stake in Webster Financial Corporation (NYSE:WBS - Free Report) by 122.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 372,647 shares of the financial services provider's stock after purchasing an additional 205,501 shares during the period. Webster Financial makes up approximately 3.2% of Algebris UK Ltd's portfolio, making the stock its 16th biggest holding. Algebris UK Ltd owned approximately 0.22% of Webster Financial worth $17,784,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also bought and sold shares of the company. FMR LLC grew its holdings in shares of Webster Financial by 1.2% in the fourth quarter. FMR LLC now owns 8,493,426 shares of the financial services provider's stock worth $469,007,000 after purchasing an additional 99,908 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in Webster Financial by 0.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 6,620,818 shares of the financial services provider's stock valued at $365,601,000 after purchasing an additional 45,310 shares during the period. Capital International Investors grew its position in shares of Webster Financial by 0.9% in the 4th quarter. Capital International Investors now owns 4,130,379 shares of the financial services provider's stock worth $228,000,000 after buying an additional 35,039 shares during the last quarter. Earnest Partners LLC grew its position in shares of Webster Financial by 3.8% in the 4th quarter. Earnest Partners LLC now owns 3,154,160 shares of the financial services provider's stock worth $174,173,000 after buying an additional 116,508 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. boosted its holdings in Webster Financial by 4.0% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,948,701 shares of the financial services provider's stock valued at $162,828,000 after acquiring an additional 114,375 shares in the last quarter. Hedge funds and other institutional investors own 85.58% of the company's stock.

Webster Financial Stock Down 3.0%

NYSE WBS traded down $1.75 during mid-day trading on Friday, reaching $55.90. The stock had a trading volume of 1,070,463 shares, compared to its average volume of 1,318,527. Webster Financial Corporation has a 1 year low of $39.43 and a 1 year high of $63.99. The stock has a market cap of $9.40 billion, a PE ratio of 11.37, a price-to-earnings-growth ratio of 0.54 and a beta of 1.00. The company has a fifty day moving average price of $55.66 and a 200 day moving average price of $53.52. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.86 and a quick ratio of 0.85.

Webster Financial (NYSE:WBS - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The financial services provider reported $1.52 earnings per share for the quarter, beating analysts' consensus estimates of $1.43 by $0.09. The company had revenue of $715.80 million for the quarter, compared to the consensus estimate of $716.59 million. Webster Financial had a net margin of 20.06% and a return on equity of 10.84%. The firm's revenue for the quarter was up 16.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.26 earnings per share. On average, research analysts expect that Webster Financial Corporation will post 5.88 earnings per share for the current year.

Webster Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Monday, August 11th will be issued a $0.40 dividend. The ex-dividend date of this dividend is Monday, August 11th. This represents a $1.60 annualized dividend and a dividend yield of 2.9%. Webster Financial's payout ratio is presently 32.45%.

Webster Financial declared that its board has initiated a share repurchase program on Thursday, May 1st that allows the company to repurchase $700.00 million in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 8.7% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

WBS has been the topic of several recent analyst reports. JPMorgan Chase & Co. lifted their price target on shares of Webster Financial from $55.00 to $65.00 and gave the company an "overweight" rating in a report on Tuesday, July 1st. Jefferies Financial Group assumed coverage on shares of Webster Financial in a report on Wednesday, May 21st. They issued a "buy" rating and a $65.00 price target on the stock. Raymond James Financial upped their price target on Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a research note on Friday, July 18th. UBS Group reaffirmed a "buy" rating and issued a $69.00 price target on shares of Webster Financial in a research note on Wednesday, July 9th. Finally, Citigroup upped their price target on Webster Financial from $65.00 to $71.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Four research analysts have rated the stock with a hold rating and ten have given a buy rating to the company's stock. Based on data from MarketBeat.com, Webster Financial has a consensus rating of "Moderate Buy" and an average target price of $66.77.

Insider Buying and Selling

In related news, CAO Albert Jen-Wen Wang sold 3,250 shares of the firm's stock in a transaction that occurred on Tuesday, July 22nd. The shares were sold at an average price of $60.31, for a total value of $196,007.50. Following the transaction, the chief accounting officer owned 15,755 shares of the company's stock, valued at approximately $950,184.05. This trade represents a 17.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Jason A. Soto sold 2,500 shares of the firm's stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $61.21, for a total transaction of $153,025.00. Following the completion of the transaction, the insider directly owned 18,889 shares in the company, valued at approximately $1,156,195.69. The trade was a 11.69% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 40,838 shares of company stock valued at $2,318,109 over the last ninety days. 0.54% of the stock is owned by insiders.

Webster Financial Profile

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of financial products and services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Consumer Banking.