Boston Partners Buys 187,648 Shares of Webster Financial Corporation (NYSE:WBS)

Key Points

• Boston Partners increased its stake in Webster Financial Corporation by 38.6%, acquiring an additional 187,648 shares, bringing its total ownership to 673,424 shares valued at approximately $34.7 million.
• Webster Financial announced a quarterly dividend of $0.40 per share, with a yield of 2.7%, and has also approved a stock repurchase program worth $700 million to buy back up to 8.7% of its outstanding shares.
• Analysts have given Webster Financial a positive outlook, with ten buy ratings and an average price target of $66.77, reflecting confidence in the company's performance and growth potential.

Boston Partners lifted its holdings in Webster Financial Corporation (NYSE:WBS - Free Report) by 38.6% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 673,424 shares of the financial services provider's stock after acquiring an additional 187,648 shares during the quarter. Boston Partners owned approximately 0.40% of Webster Financial worth $34,703,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also modified their holdings of WBS. Picton Mahoney Asset Management bought a new position in Webster Financial in the first quarter valued at about $25,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in Webster Financial by 327.2% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 739 shares of the financial services provider's stock valued at $38,000 after purchasing an additional 566 shares during the period. TCTC Holdings LLC boosted its stake in Webster Financial by 118.4% in the 1st quarter. TCTC Holdings LLC now owns 832 shares of the financial services provider's stock worth $43,000 after purchasing an additional 451 shares during the period. Allworth Financial LP grew its holdings in shares of Webster Financial by 43.7% during the first quarter. Allworth Financial LP now owns 941 shares of the financial services provider's stock worth $45,000 after purchasing an additional 286 shares in the last quarter. Finally, Versant Capital Management Inc raised its stake in shares of Webster Financial by 171.2% during 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. Institutional investors and hedge funds own 85.58% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on WBS shares. Keefe, Bruyette & Woods increased their price target on shares of Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a research note on Friday, July 18th. Citigroup upped their price target on shares of Webster Financial from $65.00 to $71.00 and gave the company a "buy" rating in a research note on Friday, July 18th. Jefferies Financial Group initiated coverage on shares of Webster Financial in a report on Wednesday, May 21st. They issued a "buy" rating and a $65.00 price target on the stock. UBS Group reiterated a "buy" rating and issued a $69.00 price target on shares of Webster Financial in a report on Wednesday, July 9th. Finally, JPMorgan Chase & Co. upped their price target on shares of Webster Financial from $55.00 to $65.00 and gave the company an "overweight" rating in a research note on Tuesday, July 1st. Four investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $66.77.

Insider Buying and Selling

In related news, CAO Albert Jen-Wen Wang sold 3,250 shares of the stock in a transaction dated Tuesday, July 22nd. The shares were sold at an average price of $60.31, for a total value of $196,007.50. Following the completion of the transaction, the chief accounting officer owned 15,755 shares in the company, valued at $950,184.05. This represents a 17.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Jason A. Soto sold 2,500 shares of the stock in a transaction on Monday, July 21st. The shares were sold at an average price of $61.21, for a total value of $153,025.00. Following the transaction, the insider directly owned 18,889 shares of the company's stock, valued at approximately $1,156,195.69. The trade was a 11.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 47,638 shares of company stock valued at $2,721,745 in the last ninety days. Insiders own 0.54% of the company's stock.

Webster Financial Trading Down 1.4%

NYSE:WBS traded down $0.84 during trading hours on Friday, reaching $57.59. 1,227,626 shares of the company were exchanged, compared to its average volume of 1,326,952. The firm has a market cap of $9.57 billion, a price-to-earnings ratio of 11.68, a PEG ratio of 0.53 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 stock has a 50 day simple moving average of $56.69 and a 200 day simple moving average of $53.26. Webster Financial Corporation has a 52-week low of $39.43 and a 52-week high of $63.99.

Webster Financial (NYSE:WBS - Get Free Report) last posted its quarterly earnings data on Thursday, July 17th. The financial services provider reported $1.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 net margin of 20.06% and a return on equity of 10.84%. The business's quarterly revenue was up 16.5% on a year-over-year basis. During the same quarter last year, the firm posted $1.26 earnings per share. As a group, analysts predict that Webster Financial Corporation will post 5.88 EPS for the current year.

Webster Financial Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Shareholders of record on Monday, August 11th will be paid a $0.40 dividend. The ex-dividend date is Monday, August 11th. This represents a $1.60 annualized dividend and a dividend yield of 2.8%. Webster Financial's dividend payout ratio (DPR) is presently 32.45%.

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

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.