Hsbc Holdings PLC Raises Stake in Webster Financial Corporation $WBS

Key Points

• HSBC Holdings PLC dramatically increased its stake in Webster Financial during the first quarter, boosting holdings by 4,807.2% to 637,642 shares worth about $44 million.
• Webster Financial beat quarterly expectations, reporting $1.57 EPS versus $1.53 expected and revenue of $764.05 million, up 4.4% year over year.
• The stock is drawing a mixed Wall Street view: the consensus rating is Hold with an average price target of $73.96, while the company also paid a quarterly dividend of $0.40 per share, or $1.60 annualized.

Hsbc Holdings PLC raised its holdings in shares of Webster Financial Corporation (NYSE:WBS - Free Report) by 4,807.2% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 637,642 shares of the financial services provider's stock after acquiring an additional 624,648 shares during the period. Hsbc Holdings PLC owned about 0.39% of Webster Financial worth $43,993,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in WBS. BOKF NA purchased a new stake in shares of Webster Financial in the 3rd quarter valued at $26,000. Flagship Harbor Advisors LLC bought a new position in shares of Webster Financial during the 4th quarter valued at $28,000. Caitong International Asset Management Co. Ltd purchased a new position in Webster Financial in the 3rd quarter worth $29,000. New England Capital Financial Advisors LLC raised its position in Webster Financial by 246.8% in the 1st quarter. New England Capital Financial Advisors LLC now owns 437 shares of the financial services provider's stock worth $30,000 after purchasing an additional 311 shares during the period. Finally, Atlas Capital Advisors Inc. purchased a new position in Webster Financial in the 4th quarter worth $31,000. 85.58% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. UBS Group assumed coverage on shares of Webster Financial in a research report on Tuesday, April 7th. They set a "neutral" rating and a $69.00 price target for the company. Keefe, Bruyette & Woods decreased their price objective on Webster Financial from $79.00 to $77.50 and set an "outperform" rating on the stock in a report on Friday, May 1st. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Webster Financial in a research note on Friday, June 12th. Four equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Webster Financial currently has a consensus rating of "Hold" and an average price target of $73.96.

Webster Financial Stock Down 0.8%

Shares of NYSE WBS opened at $75.38 on Tuesday. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.60. Webster Financial Corporation has a 52 week low of $52.69 and a 52 week high of $77.69. The firm's fifty day moving average is $74.25 and its 200 day moving average is $71.06. The company has a market cap of $12.21 billion, a price-to-earnings ratio of 12.34 and a beta of 1.00.

Webster Financial (NYSE:WBS - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The financial services provider reported $1.57 earnings per share for the quarter, beating the consensus estimate of $1.53 by $0.04. The business had revenue of $764.05 million during the quarter, compared to analysts' expectations of $735.26 million. Webster Financial had a net margin of 22.95% and a return on equity of 11.31%. The firm's revenue for the quarter was up 4.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.30 EPS. On average, equities research analysts expect that Webster Financial Corporation will post 6.57 earnings per share for the current year.

Webster Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Monday, May 11th were paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend was Monday, May 11th. Webster Financial's dividend payout ratio is 26.19%.

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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