Bank of America Corp DE Buys 1,504,075 Shares of Webster Financial Corporation $WBS

Key Points

• Bank of America increased its Webster Financial stake by 67.6%, purchasing 1.5 million additional shares to own 3.73 million shares, or 2.3% of the company valued at approximately $258.8 million.
• Institutional ownership remains high at 85.58%, with several funds adding shares during the first quarter, including Amundi, Janus Henderson and California State Teachers Retirement System.
• Webster Financial shares rose 0.9% to $77.94, near their 12-month high, while analysts maintain a consensus “Hold” rating and a $74.25 target price. The company also declared a quarterly dividend of $0.40 per share, yielding about 2.1% annually.

Bank of America Corp DE raised its stake in Webster Financial Corporation (NYSE:WBS - Free Report) by 67.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 3,727,744 shares of the financial services provider's stock after buying an additional 1,504,075 shares during the quarter. Bank of America Corp DE owned 2.30% of Webster Financial worth $258,780,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Janus Henderson Group PLC increased its stake in Webster Financial by 45.5% in the first quarter. Janus Henderson Group PLC now owns 106,800 shares of the financial services provider's stock valued at $7,419,000 after purchasing an additional 33,400 shares in the last quarter. Amundi grew its holdings in shares of Webster Financial by 282.5% in the 1st quarter. Amundi now owns 339,328 shares of the financial services provider's stock valued at $23,556,000 after buying an additional 250,604 shares during the period. California State Teachers Retirement System grew its holdings in shares of Webster Financial by 18.5% in the 1st quarter. California State Teachers Retirement System now owns 192,741 shares of the financial services provider's stock valued at $13,380,000 after buying an additional 30,039 shares during the period. Quantinno Capital Management LP increased its position in shares of Webster Financial by 17.0% in the 1st quarter. Quantinno Capital Management LP now owns 112,305 shares of the financial services provider's stock valued at $7,796,000 after buying an additional 16,334 shares in the last quarter. Finally, Whitebox Advisors LLC acquired a new stake in Webster Financial during the 1st quarter worth $133,634,000. Institutional investors own 85.58% of the company's stock.

Analyst Ratings Changes

Several research analysts have weighed in on WBS shares. UBS Group started coverage on Webster Financial in a report on Tuesday, April 7th. They set a "neutral" rating and a $69.00 target price on the stock. Royal Bank Of Canada raised their price target on Webster Financial from $75.00 to $76.00 and gave the stock a "sector perform" rating in a research report on Wednesday, July 22nd. Keefe, Bruyette & Woods cut their price objective on Webster Financial from $79.00 to $77.50 and set an "outperform" rating on the stock in a report on Friday, May 1st. Weiss Ratings reiterated a "buy (b)" rating on shares of Webster Financial in a research report on Friday, June 12th. Finally, Barclays increased their target price on Webster Financial from $75.00 to $78.00 and gave the stock an "equal weight" rating in a research note on Monday. Four equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $74.25.

Webster Financial Trading Up 0.9%

NYSE:WBS opened at $77.94 on Tuesday. Webster Financial Corporation has a twelve month low of $52.69 and a twelve month high of $77.96. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.46. The business has a 50 day moving average price of $75.20 and a two-hundred day moving average price of $71.94. The company has a market cap of $12.63 billion, a P/E ratio of 12.67 and a beta of 1.01.

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

Webster Financial Dividend Announcement

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. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Monday, August 10th. Webster Financial's dividend payout ratio is currently 26.02%.

Webster Financial Company Profile

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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