AlphaQuest LLC Increases Position in Webster Financial Corporation $WBS

Key Points

• AlphaQuest LLC significantly increased its holdings in Webster Financial Corporation by 175.2%, acquiring an additional 37,246 shares, bringing its total ownership to 58,505 shares valued at $3,016,000.
• Numerous large investors, including Dimensional Fund Advisors and Invesco, have also raised their stakes in Webster Financial, with institutional investors now owning 85.58% of the company's stock.
• Webster Financial reported a strong quarterly earnings result, beating expectations with $1.52 earnings per share and a 16.5% increase in revenue compared to the previous year, reflecting robust financial performance.

AlphaQuest LLC increased its stake in shares of Webster Financial Corporation (NYSE:WBS - Free Report) by 175.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 58,505 shares of the financial services provider's stock after acquiring an additional 37,246 shares during the quarter. Webster Financial comprises approximately 0.3% of AlphaQuest LLC's portfolio, making the stock its 19th largest holding. AlphaQuest LLC's holdings in Webster Financial were worth $3,016,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Bessemer Group Inc. raised its stake in Webster Financial by 166.1% during the 1st quarter. Bessemer Group Inc. now owns 1,027 shares of the financial services provider's stock worth $53,000 after acquiring an additional 641 shares in the last quarter. GAMMA Investing LLC raised its stake in Webster Financial by 48.3% during the 1st quarter. GAMMA Investing LLC now owns 3,032 shares of the financial services provider's stock worth $156,000 after acquiring an additional 987 shares in the last quarter. Allworth Financial LP raised its stake in Webster Financial by 43.7% during the 1st quarter. Allworth Financial LP now owns 941 shares of the financial services provider's stock worth $45,000 after acquiring an additional 286 shares in the last quarter. First Foundation Advisors raised its stake in Webster Financial by 9.4% during the 1st quarter. First Foundation Advisors now owns 11,003 shares of the financial services provider's stock worth $567,000 after acquiring an additional 950 shares in the last quarter. Finally, TCTC Holdings LLC raised its stake in Webster Financial by 118.4% during the 1st quarter. TCTC Holdings LLC now owns 832 shares of the financial services provider's stock worth $43,000 after acquiring an additional 451 shares in the last quarter. 85.58% of the stock is currently owned by institutional investors and hedge funds.

Webster Financial Stock Performance

Shares of WBS stock traded up $3.2360 during mid-day trading on Friday, hitting $61.4160. The stock had a trading volume of 1,512,648 shares, compared to its average volume of 1,162,491. Webster Financial Corporation has a fifty-two week low of $39.43 and a fifty-two week high of $63.99. The firm has a market cap of $10.21 billion, a PE ratio of 12.46, a PEG ratio of 0.56 and a beta of 1.04. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.86 and a quick ratio of 0.85. The company's 50-day simple moving average is $57.22 and its 200-day simple moving average is $53.21.

Webster Financial (NYSE:WBS - Get Free Report) last released its earnings results on Thursday, July 17th. The financial services provider reported $1.52 EPS for the quarter, topping the consensus estimate of $1.43 by $0.09. Webster Financial had a net margin of 20.06% and a return on equity of 10.84%. The company had revenue of $715.80 million during the quarter, compared to analysts' expectations of $716.59 million. During the same quarter last year, the business earned $1.26 EPS. The business's revenue was up 16.5% on a year-over-year basis. Sell-side analysts anticipate that Webster Financial Corporation will post 5.88 earnings per share for the current year.

Webster Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 21st. Stockholders of record on Monday, August 11th were paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.6%. The ex-dividend date was Monday, August 11th. Webster Financial's dividend payout ratio (DPR) is 32.45%.

Webster Financial declared that its Board of Directors has initiated a share buyback plan on Thursday, May 1st that authorizes the company to repurchase $700.00 million in shares. This repurchase authorization authorizes the financial services provider to reacquire up to 8.7% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Analyst Ratings Changes

Several research analysts have issued reports on the stock. JPMorgan Chase & Co. raised their price objective on shares of Webster Financial from $55.00 to $65.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 1st. UBS Group reissued a "buy" rating and set a $69.00 price objective on shares of Webster Financial in a research report on Wednesday, July 9th. Raymond James Financial raised their price objective on shares of Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a research report on Friday, July 18th. Seaport Res Ptn downgraded shares of Webster Financial from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 25th. Finally, Citigroup raised their price objective on shares of Webster Financial from $65.00 to $71.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Ten analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Webster Financial has an average rating of "Moderate Buy" and an average price target of $66.77.

Insiders Place Their Bets

In other news, insider Javier L. Evans sold 7,800 shares of the stock in a transaction dated Wednesday, May 28th. The shares were sold at an average price of $52.58, for a total value of $410,124.00. Following the completion of the transaction, the insider owned 19,820 shares in the company, valued at $1,042,135.60. This trade represents a 28.24% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO John R. Ciulla sold 8,000 shares of the stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $57.95, for a total transaction of $463,600.00. Following the completion of the transaction, the chief executive officer owned 239,872 shares of the company's stock, valued at $13,900,582.40. This represents a 3.23% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 45,438 shares of company stock worth $2,609,985. Insiders own 0.54% of the company's stock.

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.