Arrowstreet Capital Limited Partnership Boosts Stake in Webster Financial Corporation $WBS

Key Points

• Arrowstreet Capital increased its Webster Financial stake by 4,779.9% in the first quarter, adding 197,696 shares to own 201,832 shares valued at approximately $14 million. Institutional investors collectively own 85.58% of the company.
• Webster Financial reported quarterly revenue of $769.23 million, ahead of estimates, while EPS of $1.60 narrowly missed the $1.61 consensus. Shares opened at $77.30, near their 12-month high of $77.69.
• The company declared a quarterly dividend of $0.40 per share, representing a 2.1% annualized yield. Analysts maintain a consensus “Hold” rating with an average price target of $74.04.

Arrowstreet Capital Limited Partnership boosted its position in shares of Webster Financial Corporation (NYSE:WBS - Free Report) by 4,779.9% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 201,832 shares of the financial services provider's stock after buying an additional 197,696 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 0.12% of Webster Financial worth $14,011,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in the company. BOKF NA bought a new stake in Webster Financial in the third quarter worth $26,000. New England Capital Financial Advisors LLC lifted its position in Webster Financial by 246.8% during the first quarter. New England Capital Financial Advisors LLC now owns 437 shares of the financial services provider's stock valued at $30,000 after purchasing an additional 311 shares during the last quarter. Flagship Harbor Advisors LLC purchased a new position in shares of Webster Financial in the 4th quarter worth $28,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Webster Financial in the 3rd quarter worth $29,000. Finally, Atlas Capital Advisors Inc. purchased a new stake in shares of Webster Financial during the 4th quarter valued at about $31,000. Hedge funds and other institutional investors own 85.58% of the company's stock.

Webster Financial Stock Performance

Shares of Webster Financial stock opened at $77.30 on Friday. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 0.46. The stock's fifty day moving average price is $75.07 and its 200-day moving average price is $71.78. The firm has a market cap of $12.52 billion, a P/E ratio of 12.57 and a beta of 1.00. Webster Financial Corporation has a 12 month low of $52.69 and a 12 month high of $77.69.

Webster Financial (NYSE:WBS - Get Free Report) last issued its earnings results on Tuesday, July 21st. The financial services provider reported $1.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.61 by ($0.01). The business had revenue of $769.23 million for the quarter, compared to the consensus estimate of $755.80 million. Webster Financial had a return on equity of 11.23% and a net margin of 22.78%.The firm's revenue was up 3.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.52 earnings per share. On average, equities research analysts expect that Webster Financial Corporation will post 6.55 earnings per share for the current fiscal year.

Webster Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Monday, August 10th will be paid a dividend of $0.40 per share. The ex-dividend date is Monday, August 10th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.1%. Webster Financial's dividend payout ratio (DPR) is currently 26.02%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on WBS shares. Weiss Ratings reiterated a "buy (b)" rating on shares of Webster Financial in a report on Friday, June 12th. UBS Group began coverage on Webster Financial in a report on Tuesday, April 7th. They set a "neutral" rating and a $69.00 price target on the stock. Keefe, Bruyette & Woods lowered their price target on Webster Financial from $79.00 to $77.50 and set an "outperform" rating for the company in a research report on Friday, May 1st. Finally, Royal Bank Of Canada lifted their price objective on shares of Webster Financial from $75.00 to $76.00 and gave the stock a "sector perform" rating in a research note on Wednesday, July 22nd. Four analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Webster Financial has an average rating of "Hold" and a consensus price target of $74.04.

About Webster Financial

Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.

In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.

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