GABELLI & Co INVESTMENT ADVISERS INC. Acquires New Position in Webster Financial Corporation $WBS

Key Points

• GABELLI & Co INVESTMENT ADVISERS INC. opened a new position in Webster Financial in the first quarter, buying 127,282 shares worth about $8.8 million. The stake made WBS its 23rd largest holding and represented about 1.3% of the fund’s portfolio.
• Analyst sentiment remains cautious overall: Webster Financial has a consensus Hold rating with a consensus price target of $74.04. Recent updates included mixed target changes from UBS, RBC, and KBW, while Weiss Ratings reiterated a buy rating.
• The company recently reported quarterly earnings of $1.60 per share, narrowly missing estimates, while revenue also came in below expectations. Webster Financial also paid a $0.40 quarterly dividend, equal to a 2.1% annualized yield.

GABELLI & Co INVESTMENT ADVISERS INC. acquired a new stake in Webster Financial Corporation (NYSE:WBS - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 127,282 shares of the financial services provider's stock, valued at approximately $8,836,000. Webster Financial accounts for approximately 1.3% of GABELLI & Co INVESTMENT ADVISERS INC.'s holdings, making the stock its 23rd largest position. GABELLI & Co INVESTMENT ADVISERS INC. owned about 0.08% of Webster Financial as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also added to or reduced their stakes in WBS. Dimensional Fund Advisors LP raised its stake in shares of Webster Financial by 1.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 7,920,300 shares of the financial services provider's stock valued at $498,509,000 after acquiring an additional 107,335 shares in the last quarter. Invesco Ltd. boosted its holdings in shares of Webster Financial by 2.9% in the fourth quarter. Invesco Ltd. now owns 5,516,110 shares of the financial services provider's stock valued at $347,184,000 after purchasing an additional 156,636 shares during the period. Price T Rowe Associates Inc. MD grew its stake in Webster Financial by 15.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,246,364 shares of the financial services provider's stock worth $330,207,000 after purchasing an additional 713,294 shares in the last quarter. Capital International Investors grew its stake in Webster Financial by 0.4% in the fourth quarter. Capital International Investors now owns 4,177,281 shares of the financial services provider's stock worth $263,058,000 after purchasing an additional 16,676 shares in the last quarter. Finally, Norges Bank purchased a new position in Webster Financial during the 4th quarter worth $142,035,000. 85.58% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. UBS Group assumed coverage on Webster Financial in a research report on Tuesday, April 7th. They set a "neutral" rating and a $69.00 target price for the company. Royal Bank Of Canada increased 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. Keefe, Bruyette & Woods cut their price target on Webster Financial from $79.00 to $77.50 and set an "outperform" rating on the stock in a research note on Friday, May 1st. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Webster Financial in a report on Friday, June 12th. Four analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Webster Financial presently has a consensus rating of "Hold" and a consensus price target of $74.04.

Webster Financial Price Performance

NYSE WBS opened at $76.06 on Friday. The firm's fifty day simple moving average is $74.60 and its two-hundred day simple moving average is $71.37. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 0.46. Webster Financial Corporation has a 12-month low of $52.69 and a 12-month high of $77.69. The firm has a market capitalization of $12.32 billion, a P/E ratio of 12.37 and a beta of 1.00.

Webster Financial (NYSE:WBS - Get Free Report) last issued its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.60 EPS for the quarter, missing the consensus estimate of $1.61 by ($0.01). Webster Financial had a net margin of 22.78% and a return on equity of 11.23%. The business had revenue of $739.99 million for the quarter, compared to analysts' expectations of $755.80 million. During the same quarter in the prior year, the company posted $1.52 EPS. The business's revenue for the quarter was up 3.4% on a year-over-year basis. Analysts forecast that Webster Financial Corporation will post 6.55 EPS for the current fiscal year.

Webster Financial Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Shareholders of record on Monday, May 11th were issued a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend was Monday, May 11th. Webster Financial's dividend payout ratio (DPR) is currently 26.02%.

About Webster Financial

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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