Azora Capital LP Sells 888,078 Shares of Webster Financial Corporation $WBS

Key Points

• Azora Capital LP has reduced its stake in Webster Financial Corporation by 38%, selling 888,078 shares and now holding approximately 1.45 million shares, representing 5.1% of its portfolio.
• The company reported a net margin of 20.06% with quarterly earnings of $1.52 per share, exceeding analyst expectations of $1.43.
• Webster Financial has announced a quarterly dividend of $0.40 per share and a share buyback plan authorized for up to $700 million.

Azora Capital LP decreased its holdings in Webster Financial Corporation (NYSE:WBS - Free Report) by 38.0% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 1,446,038 shares of the financial services provider's stock after selling 888,078 shares during the quarter. Webster Financial comprises approximately 5.1% of Azora Capital LP's portfolio, making the stock its 7th biggest holding. Azora Capital LP owned about 0.86% of Webster Financial worth $74,543,000 as of its most recent SEC filing.

Other large investors have also recently bought and sold shares of the company. Picton Mahoney Asset Management purchased a new position in Webster Financial in the first quarter worth $25,000. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in Webster Financial by 327.2% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 739 shares of the financial services provider's stock worth $38,000 after acquiring an additional 566 shares in the last quarter. TCTC Holdings LLC raised its position in Webster Financial by 118.4% in the first 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. Allworth Financial LP raised its position in Webster Financial by 43.7% in the first 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. Finally, Versant Capital Management Inc raised its position in Webster Financial by 171.2% in the first quarter. Versant Capital Management Inc now owns 1,025 shares of the financial services provider's stock worth $53,000 after acquiring an additional 647 shares in the last quarter. Hedge funds and other institutional investors own 85.58% of the company's stock.

Webster Financial Stock Down 0.6%

Webster Financial stock opened at $62.28 on Friday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.85 and a current ratio of 0.86. The firm has a market capitalization of $10.35 billion, a price-to-earnings ratio of 12.63, a price-to-earnings-growth ratio of 0.57 and a beta of 1.04. Webster Financial Corporation has a fifty-two week low of $39.43 and a fifty-two week high of $63.99. The stock's fifty day moving average is $58.08 and its two-hundred day moving average is $53.36.

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

Webster Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 21st. Investors of record on Monday, August 11th were paid a dividend of $0.40 per share. The ex-dividend date of this dividend was Monday, August 11th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.6%. Webster Financial's dividend payout ratio (DPR) is presently 32.45%.

Webster Financial announced that its board has approved a share repurchase plan on Thursday, May 1st that authorizes the company to buyback $700.00 million in outstanding shares. This buyback authorization authorizes the financial services provider to buy up to 8.7% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on WBS. Barclays increased their price objective on Webster Financial from $72.00 to $77.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 8th. Seaport Res Ptn cut Webster Financial from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 25th. Citigroup increased their price objective on Webster Financial from $65.00 to $71.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Raymond James Financial increased their price objective on Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a research report on Friday, July 18th. Finally, JPMorgan Chase & Co. upped their target price on Webster Financial from $55.00 to $65.00 and gave the company an "overweight" rating in a report on Tuesday, July 1st. Ten equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $66.77.

Insider Buying and Selling at Webster Financial

In related news, Director William L. Atwell sold 16,823 shares of the stock in a transaction on Monday, July 28th. The stock was sold at an average price of $59.20, for a total transaction of $995,921.60. Following the sale, the director owned 30,915 shares of the company's stock, valued at $1,830,168. This trade represents a 35.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider James Mi Griffin sold 2,065 shares of the stock in a transaction on Monday, July 21st. The shares were sold at an average price of $60.56, for a total value of $125,056.40. Following the sale, the insider directly owned 13,363 shares in the company, valued at approximately $809,263.28. The trade was a 13.38% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 37,638 shares of company stock valued at $2,199,861. 0.54% of the stock is owned by company insiders.

Webster Financial Company 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.

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