Fox Run Management L.L.C. Trims Holdings in Webster Financial Corporation $WBS

Key Points

• Fox Run Management L.L.C. has reduced its stake in Webster Financial Corporation by 51.2%, now holding 8,404 shares valued at approximately $433,000.
• Webster Financial recently announced a stock repurchase program authorizing the buyback of up to $700 million in shares, indicating management's belief that their stock is undervalued.
• The company has declared a quarterly dividend of $0.40 per share, with an annualized payout of $1.60, reflecting a 2.7% dividend yield.

Fox Run Management L.L.C. reduced its stake in Webster Financial Corporation (NYSE:WBS - Free Report) by 51.2% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,404 shares of the financial services provider's stock after selling 8,814 shares during the quarter. Fox Run Management L.L.C.'s holdings in Webster Financial were worth $433,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also bought and sold shares of WBS. Bessemer Group Inc. grew its position in Webster Financial by 166.1% during the first quarter. Bessemer Group Inc. now owns 1,027 shares of the financial services provider's stock valued at $53,000 after acquiring an additional 641 shares during the last quarter. GAMMA Investing LLC grew its position in Webster Financial by 48.3% during the first quarter. GAMMA Investing LLC now owns 3,032 shares of the financial services provider's stock valued at $156,000 after acquiring an additional 987 shares during the last quarter. Allworth Financial LP grew its position in Webster Financial by 43.7% during the first quarter. Allworth Financial LP now owns 941 shares of the financial services provider's stock valued at $45,000 after acquiring an additional 286 shares during the last quarter. First Foundation Advisors grew its position in Webster Financial by 9.4% during the first quarter. First Foundation Advisors now owns 11,003 shares of the financial services provider's stock valued at $567,000 after acquiring an additional 950 shares during the last quarter. Finally, TCTC Holdings LLC grew its position in Webster Financial by 118.4% during the first quarter. TCTC Holdings LLC now owns 832 shares of the financial services provider's stock valued at $43,000 after acquiring an additional 451 shares during the last quarter. 85.58% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Webster Financial news, insider Charles L. Wilkins sold 5,000 shares of the business's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $53.25, for a total value of $266,250.00. Following the completion of the transaction, the insider owned 31,534 shares of the company's stock, valued at approximately $1,679,185.50. The trade was a 13.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Albert Jen-Wen Wang sold 3,250 shares of the company's stock in a transaction dated Tuesday, July 22nd. The shares were sold at an average price of $60.31, for a total transaction of $196,007.50. Following the sale, the chief accounting officer directly owned 15,755 shares of the company's stock, valued at $950,184.05. The trade was a 17.10% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 45,438 shares of company stock worth $2,609,985 in the last quarter. Insiders own 0.54% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have commented on WBS. JPMorgan Chase & Co. increased their price target on shares of Webster Financial from $55.00 to $65.00 and gave the company an "overweight" rating in a research report on Tuesday, July 1st. Keefe, Bruyette & Woods raised their target price on shares of Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a report on Friday, July 18th. Seaport Res Ptn cut shares of Webster Financial from a "strong-buy" rating to a "hold" rating in a report on Friday, July 25th. Citigroup raised their target price on shares of Webster Financial from $65.00 to $71.00 and gave the stock a "buy" rating in a report on Friday, July 18th. Finally, Wells Fargo & Company lifted their price target on shares of Webster Financial from $70.00 to $75.00 and gave the company an "overweight" rating in a report on Friday, July 18th. Ten equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $66.77.

Webster Financial Stock Down 0.3%

Shares of WBS traded down $0.1880 during trading hours on Thursday, hitting $58.1720. The company had a trading volume of 832,006 shares, compared to its average volume of 1,179,754. The firm has a fifty day moving average price of $57.03 and a 200-day moving average price of $53.31. 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 stock has a market capitalization of $9.67 billion, a price-to-earnings ratio of 11.80, a P/E/G ratio of 0.53 and a beta of 1.04. 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 results on Thursday, July 17th. The financial services provider reported $1.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.43 by $0.09. The firm had revenue of $715.80 million during 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 quarterly revenue was up 16.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.26 EPS. On average, equities research analysts forecast that Webster Financial Corporation will post 5.88 EPS for the current fiscal year.

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

Webster Financial Dividend Announcement

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

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.