Cambiar Investors LLC Makes New $8.92 Million Investment in Webster Financial Corporation $WBS

Key Points

• Cambiar Investors LLC has acquired a new stake in Webster Financial Corporation, purchasing 172,932 shares valued at approximately $8.92 million.
• Analysts have generally positive outlooks for Webster Financial, with multiple firms raising their target prices, resulting in a consensus rating of "Moderate Buy" and an average target price of $66.77.
• The company recently declared a quarterly dividend of $0.40 per share, expected to be paid on August 21st, and also authorized a stock buyback program worth $700 million.

Cambiar Investors LLC purchased a new stake in Webster Financial Corporation (NYSE:WBS - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 172,932 shares of the financial services provider's stock, valued at approximately $8,915,000. Cambiar Investors LLC owned approximately 0.10% of Webster Financial as of its most recent SEC filing.

A number of other hedge funds have also recently modified their holdings of the business. American Century Companies Inc. boosted its holdings in shares of Webster Financial by 1.6% during the 1st quarter. American Century Companies Inc. now owns 3,015,647 shares of the financial services provider's stock valued at $155,457,000 after buying an additional 48,942 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Webster Financial by 7.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 7,108,082 shares of the financial services provider's stock valued at $366,408,000 after buying an additional 487,264 shares in the last quarter. Boston Partners boosted its holdings in shares of Webster Financial by 38.6% during the 1st quarter. Boston Partners now owns 673,424 shares of the financial services provider's stock valued at $34,703,000 after buying an additional 187,648 shares in the last quarter. Persistent Asset Partners Ltd boosted its holdings in shares of Webster Financial by 234.5% during the 1st quarter. Persistent Asset Partners Ltd now owns 20,773 shares of the financial services provider's stock valued at $1,071,000 after buying an additional 14,562 shares in the last quarter. Finally, Nuveen LLC purchased a new position in shares of Webster Financial in the 1st quarter worth about $23,603,000. Institutional investors own 85.58% of the company's stock.

Insider Activity

In related news, CEO John R. Ciulla sold 8,000 shares of the business's stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $57.95, for a total transaction of $463,600.00. Following the completion of the transaction, the chief executive officer directly owned 239,872 shares in the company, valued at approximately $13,900,582.40. The trade was a 3.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider James Mi Griffin sold 2,065 shares of the business's stock in a transaction that occurred 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 transaction, the insider owned 13,363 shares of the company's stock, valued at approximately $809,263.28. This trade represents a 13.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 45,438 shares of company stock worth $2,609,985. Company insiders own 0.54% of the company's stock.

Webster Financial Stock Performance

Shares of NYSE WBS traded down $0.1880 during midday trading on Thursday, hitting $58.1720. 832,006 shares of the company's stock traded hands, compared to its average volume of 1,303,819. Webster Financial Corporation has a 1 year low of $39.43 and a 1 year high of $63.99. The stock has a market capitalization of $9.67 billion, a price-to-earnings ratio of 11.80, a price-to-earnings-growth ratio of 0.53 and a beta of 1.04. 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 fifty day moving average of $56.93 and a 200 day moving average of $53.32.

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

Webster Financial declared that its board has authorized a stock buyback program on Thursday, May 1st that allows the company to repurchase $700.00 million in shares. This repurchase authorization allows the financial services provider to repurchase up to 8.7% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Webster Financial Announces Dividend

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

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on WBS shares. Jefferies Financial Group started coverage on Webster Financial in a research report on Wednesday, May 21st. They issued a "buy" rating and a $65.00 price target for the company. Keefe, Bruyette & Woods lifted their price target on Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a research report on Friday, July 18th. Raymond James Financial lifted their price target on Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a research report on Friday, July 18th. Barclays lifted their price target on Webster Financial from $72.00 to $77.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 8th. Finally, Citigroup lifted their price target on Webster Financial from $65.00 to $71.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Ten analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $66.77.

About Webster Financial

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.