Northern Trust Corp Reduces Position in Webster Financial Corporation $WBS

Key Points

• Northern Trust Corp reduced its position in Webster Financial Corporation by 2.6%, now holding 1,488,050 shares, valued at approximately $76.7 million.
• Analysts are optimistic about Webster Financial, with multiple firms raising target prices; the stock currently has a consensus rating of "Moderate Buy" with a target price of $66.77.
• Webster Financial recently announced a quarterly dividend of $0.40 per share, with an annualized yield of 2.6% and a stock buyback plan authorized for $700 million.

Northern Trust Corp cut its position in Webster Financial Corporation (NYSE:WBS - Free Report) by 2.6% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,488,050 shares of the financial services provider's stock after selling 40,409 shares during the period. Northern Trust Corp owned 0.88% of Webster Financial worth $76,709,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently modified their holdings of the company. Kovitz Investment Group Partners LLC increased its position in shares of Webster Financial by 3.2% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 5,912 shares of the financial services provider's stock valued at $326,000 after purchasing an additional 186 shares during the last quarter. Penbrook Management LLC grew its position in shares of Webster Financial by 5.2% in the 1st quarter. Penbrook Management LLC now owns 5,080 shares of the financial services provider's stock valued at $262,000 after buying an additional 250 shares during the last quarter. Cetera Investment Advisers grew its position in shares of Webster Financial by 1.2% in the 4th quarter. Cetera Investment Advisers now owns 21,299 shares of the financial services provider's stock valued at $1,176,000 after buying an additional 259 shares during the last quarter. Beverly Hills Private Wealth LLC grew its position in shares of Webster Financial by 4.5% in the 1st quarter. Beverly Hills Private Wealth LLC now owns 6,058 shares of the financial services provider's stock valued at $312,000 after buying an additional 262 shares during the last quarter. Finally, Allworth Financial LP grew its position in shares of Webster Financial by 43.7% in the 1st quarter. Allworth Financial LP now owns 941 shares of the financial services provider's stock valued at $45,000 after buying an additional 286 shares during the last quarter. 85.58% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research analysts recently commented on the stock. Truist Financial reaffirmed a "buy" rating and issued a $67.00 target price (up from $61.00) on shares of Webster Financial in a research report on Friday, July 11th. Raymond James Financial increased their target price on shares of Webster Financial from $65.00 to $68.00 and gave the company an "outperform" rating in a research report on Friday, July 18th. Citigroup increased their target price on shares of Webster Financial from $65.00 to $71.00 and gave the company a "buy" rating in a research report on Friday, July 18th. UBS Group reaffirmed a "buy" rating and issued a $69.00 target price on shares of Webster Financial in a research report on Wednesday, July 9th. Finally, Wells Fargo & Company increased their target price on shares of Webster Financial from $70.00 to $75.00 and gave the company an "overweight" rating in a research report on Friday, July 18th. Ten analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $66.77.

Webster Financial Stock Up 5.6%

Shares of NYSE:WBS opened at $61.4160 on Monday. The stock has a market cap of $10.21 billion, a P/E ratio of 12.46, a P/E/G ratio of 0.56 and a beta of 1.04. The firm has a fifty day moving average price of $57.22 and a 200 day moving average price of $53.21. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.86 and a quick ratio of 0.85. Webster Financial Corporation has a 1-year low of $39.43 and a 1-year high of $63.99.

Webster Financial (NYSE:WBS - Get Free Report) last issued its quarterly earnings results on Thursday, July 17th. The financial services provider reported $1.52 earnings per share for the quarter, topping analysts' consensus estimates 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 analysts' expectations of $716.59 million. During the same quarter in the prior year, the business earned $1.26 EPS. Webster Financial's quarterly revenue was up 16.5% compared to the same quarter last year. Sell-side analysts predict that Webster Financial Corporation will post 5.88 EPS for the current year.

Webster Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 21st. Stockholders of record on Monday, August 11th were issued a $0.40 dividend. The ex-dividend date of this dividend was Monday, August 11th. This represents a $1.60 annualized dividend and a dividend yield of 2.6%. Webster Financial's payout ratio is presently 32.45%.

Webster Financial announced that its Board of Directors has authorized a stock buyback plan on Thursday, May 1st that permits the company to repurchase $700.00 million in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 8.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, insider Jason A. Soto sold 2,500 shares of Webster Financial stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $61.21, for a total value of $153,025.00. Following the sale, the insider owned 18,889 shares of the company's stock, valued at $1,156,195.69. The trade was a 11.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Albert Jen-Wen Wang sold 3,250 shares of Webster Financial 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 completion of the sale, the chief accounting officer directly owned 15,755 shares in the company, valued at approximately $950,184.05. The trade was a 17.10% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 45,438 shares of company stock valued at $2,609,985. Corporate insiders own 0.54% of the company's stock.

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.

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