Bank of Nova Scotia Invests $154.80 Million in Webster Financial Corporation $WBS

Key Points

• Bank of Nova Scotia acquired 2.03 million Webster Financial shares worth approximately $154.8 million, giving it a 1.25% stake. Institutional investors collectively own 85.58% of the company.
• Webster Financial reported quarterly revenue of $769.2 million, ahead of estimates, while earnings per share of $1.60 narrowly missed consensus. Revenue increased 3.4% year over year.
• The company declared a quarterly dividend of $0.40 per share, equivalent to a 2.1% annualized yield. Analysts maintain a consensus “Hold” rating with an average price target of $74.25.

Bank of Nova Scotia purchased a new stake in Webster Financial Corporation (NYSE:WBS - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 2,025,607 shares of the financial services provider's stock, valued at approximately $154,797,000. Bank of Nova Scotia owned approximately 1.25% of Webster Financial at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of Webster Financial during the 2nd quarter worth $1,182,130,000. Norges Bank bought a new stake in Webster Financial during the fourth quarter worth about $142,035,000. Alyeska Investment Group L.P. grew its stake in Webster Financial by 7,442.8% during the third quarter. Alyeska Investment Group L.P. now owns 2,032,937 shares of the financial services provider's stock worth $120,838,000 after buying an additional 2,005,985 shares in the last quarter. Whitebox Advisors LLC acquired a new stake in Webster Financial during the first quarter worth about $133,634,000. Finally, Assenagon Asset Management S.A. bought a new position in Webster Financial in the 1st quarter valued at about $109,754,000. 85.58% of the stock is currently owned by institutional investors.

Webster Financial Price Performance

Shares of NYSE WBS opened at $77.57 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 company has a market cap of $12.57 billion, a price-to-earnings ratio of 12.61 and a beta of 1.01. Webster Financial Corporation has a 12 month low of $52.69 and a 12 month high of $79.74. The stock has a 50-day moving average price of $76.83 and a two-hundred day moving average price of $73.24.

Webster Financial (NYSE:WBS - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.60 earnings per share for the quarter, missing analysts' consensus estimates of $1.61 by ($0.01). The company 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%. The company's revenue for the quarter was up 3.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.52 earnings per share. As a group, analysts forecast that Webster Financial Corporation will post 6.59 earnings per share for the current fiscal year.

Webster Financial Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, August 20th. Stockholders of record on Monday, August 10th were issued a dividend of $0.40 per share. The ex-dividend date was Monday, August 10th. This represents a $1.60 annualized dividend and a dividend yield of 2.1%. Webster Financial's dividend payout ratio is 26.02%.

Analyst Ratings Changes

Several brokerages have recently commented on WBS. Keefe, Bruyette & Woods dropped their target price on shares of Webster Financial from $79.00 to $77.50 and set an "outperform" rating for the company in a research report on Friday, May 1st. Barclays increased their price target on shares of Webster Financial from $75.00 to $78.00 and gave the stock an "equal weight" rating in a research report on Monday, August 3rd. Royal Bank Of Canada lifted their price objective on shares of Webster Financial from $75.00 to $76.00 and gave the company a "sector perform" rating in a research note on Wednesday, July 22nd. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Webster Financial in a research report on Friday, June 12th. Four research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $74.25.

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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