Magnetar Financial LLC Takes Position in Webster Financial Corporation $WBS

Key Points

• Magnetar Financial LLC initiated a new position in Webster Financial in Q3, buying 75,620 shares worth about $4.495 million; institutional investors now own roughly 85.58% of the company, with large additions from Capital International and Bank of Montreal.
• Webster beat recent quarterly estimates with EPS of $1.59 (vs. $1.52 expected) and revenue of $760.48M (vs. $731.95M expected), and trades with a market cap near $11.09 billion and a P/E of 11.64.
• The company pays a $0.40 quarterly dividend (annualized $1.60, ~2.3% yield) and carries a consensus analyst rating of "Hold" with an average price target of $74.50.

Magnetar Financial LLC purchased a new position in Webster Financial Corporation (NYSE:WBS - Free Report) during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm purchased 75,620 shares of the financial services provider's stock, valued at approximately $4,495,000.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in WBS. Capital International Investors grew its stake in Webster Financial by 2.2% in the 3rd quarter. Capital International Investors now owns 4,160,605 shares of the financial services provider's stock worth $247,340,000 after acquiring an additional 89,723 shares in the last quarter. Bank of Montreal Can raised its stake in shares of Webster Financial by 65.2% during the third quarter. Bank of Montreal Can now owns 2,070,013 shares of the financial services provider's stock valued at $123,042,000 after acquiring an additional 817,218 shares in the last quarter. Vestcor Inc bought a new stake in shares of Webster Financial during the third quarter valued at approximately $1,194,000. Fieldview Capital Management LLC purchased a new stake in shares of Webster Financial in the third quarter valued at approximately $243,000. Finally, Russell Investments Group Ltd. boosted its holdings in shares of Webster Financial by 0.8% in the third quarter. Russell Investments Group Ltd. now owns 286,748 shares of the financial services provider's stock valued at $17,044,000 after purchasing an additional 2,223 shares during the period. Institutional investors own 85.58% of the company's stock.

Webster Financial Stock Down 0.5%

WBS stock opened at $68.77 on Thursday. Webster Financial Corporation has a one year low of $39.43 and a one year high of $74.00. The firm's 50 day moving average price is $68.34 and its 200-day moving average price is $62.90. The firm has a market cap of $11.09 billion, a PE ratio of 11.64 and a beta of 1.03. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.86 and a current ratio of 0.86.

Webster Financial (NYSE:WBS - Get Free Report) last issued its quarterly earnings data on Friday, January 23rd. The financial services provider reported $1.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.52 by $0.07. Webster Financial had a net margin of 22.67% and a return on equity of 11.10%. The firm had revenue of $760.48 million for the quarter, compared to analyst estimates of $731.95 million. During the same period in the previous year, the firm earned $1.43 EPS. On average, equities research analysts anticipate that Webster Financial Corporation will post 5.88 EPS for the current year.

Webster Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, February 19th. Investors of record on Monday, February 9th were issued a $0.40 dividend. The ex-dividend date of this dividend was Monday, February 9th. This represents a $1.60 annualized dividend and a yield of 2.3%. Webster Financial's dividend payout ratio (DPR) is 27.07%.

Analyst Ratings Changes

Several brokerages have issued reports on WBS. Keefe, Bruyette & Woods increased their target price on Webster Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a research report on Monday, March 2nd. TD Cowen lowered shares of Webster Financial from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, February 4th. Truist Financial cut shares of Webster Financial from a "buy" rating to a "hold" rating and set a $74.00 price target on the stock. in a report on Wednesday, February 4th. Wells Fargo & Company raised shares of Webster Financial from a "strong sell" rating to a "hold" rating in a report on Wednesday, March 4th. Finally, Royal Bank Of Canada downgraded Webster Financial from a "moderate buy" rating to a "hold" rating and set a $75.00 price target on the stock. in a research report on Wednesday, February 4th. Four research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $74.50.

Webster Financial Profile

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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