Webster Financial Corporation $WBS Shares Purchased by Systematic Financial Management LP

Key Points

• Systematic Financial Management LP increased its stake in Webster Financial Corporation by 1.0%, now owning over 1 million shares valued at approximately $51.8 million.
• Webster Financial's recent earnings showed an EPS of $1.52 for the quarter, exceeding forecasts, with a revenue increase of 16.5% year-over-year.
• The company authorized a $700 million stock repurchase program, indicating a belief that the stock is undervalued, and recently declared a quarterly dividend of $0.40.

Systematic Financial Management LP increased its stake in shares of Webster Financial Corporation (NYSE:WBS - Free Report) by 1.0% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,005,441 shares of the financial services provider's stock after purchasing an additional 9,626 shares during the quarter. Webster Financial accounts for 1.5% of Systematic Financial Management LP's holdings, making the stock its 5th largest holding. Systematic Financial Management LP owned about 0.60% of Webster Financial worth $51,830,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently bought and sold shares of the stock. Kovitz Investment Group Partners LLC grew 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 buying an additional 186 shares during the last quarter. Penbrook Management LLC grew its holdings in shares of Webster Financial by 5.2% during the first quarter. Penbrook Management LLC now owns 5,080 shares of the financial services provider's stock worth $262,000 after purchasing an additional 250 shares during the last quarter. Cetera Investment Advisers grew its holdings in shares of Webster Financial by 1.2% during the fourth quarter. Cetera Investment Advisers now owns 21,299 shares of the financial services provider's stock worth $1,176,000 after purchasing an additional 259 shares during the last quarter. Beverly Hills Private Wealth LLC increased its position in shares of Webster Financial by 4.5% during the first quarter. Beverly Hills Private Wealth LLC now owns 6,058 shares of the financial services provider's stock worth $312,000 after purchasing an additional 262 shares in the last quarter. Finally, Allworth Financial LP lifted its holdings 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 purchasing an additional 286 shares during the last quarter. Institutional investors and hedge funds own 85.58% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on WBS shares. JPMorgan Chase & Co. upped their target price on shares of Webster Financial from $55.00 to $65.00 and gave the company an "overweight" rating in a report on Tuesday, July 1st. Wells Fargo & Company raised their target price on shares of Webster Financial from $70.00 to $75.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Jefferies Financial Group began coverage on Webster Financial in a research report on Wednesday, May 21st. They issued a "buy" rating and a $65.00 target price on the stock. Raymond James Financial upped their target price on Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a research report on Friday, July 18th. Finally, Truist Financial restated a "buy" rating and set a $67.00 price objective (up previously from $61.00) on shares of Webster Financial in a research note on Friday, July 11th. Ten analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $66.77.

Webster Financial Stock Performance

Shares of Webster Financial stock traded up $0.89 on Tuesday, reaching $62.02. 1,290,872 shares of the company were exchanged, compared to its average volume of 1,147,820. Webster Financial Corporation has a 1-year low of $39.43 and a 1-year high of $63.99. The firm has a market cap of $10.31 billion, a price-to-earnings ratio of 12.58, a P/E/G ratio of 0.56 and a beta of 1.04. 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 company's 50-day moving average is $57.64 and its two-hundred day moving average is $53.28.

Webster Financial (NYSE:WBS - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The financial services provider reported $1.52 EPS for the quarter, topping analysts' consensus estimates of $1.43 by $0.09. The firm had revenue of $715.80 million during the quarter, compared to the consensus estimate of $716.59 million. Webster Financial had a return on equity of 10.84% and a net margin of 20.06%.The firm's revenue was up 16.5% on a year-over-year basis. During the same period in the prior year, the business earned $1.26 EPS. As a group, research analysts expect that Webster Financial Corporation will post 5.88 earnings per share for the current fiscal year.

Webster Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 21st. Investors of record on Monday, August 11th were given a $0.40 dividend. The ex-dividend date was Monday, August 11th. This represents a $1.60 annualized dividend and a yield of 2.6%. Webster Financial's dividend payout ratio (DPR) is currently 32.45%.

Webster Financial declared that its Board of Directors has initiated a share buyback plan on Thursday, May 1st that authorizes the company to repurchase $700.00 million in shares. This repurchase authorization authorizes the financial services provider to reacquire up to 8.7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Insider Activity

In other news, CAO Albert Jen-Wen Wang sold 3,250 shares of the business's stock in a transaction that occurred on Tuesday, July 22nd. The stock was sold at an average price of $60.31, for a total transaction of $196,007.50. Following the completion of the transaction, 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Charles L. Wilkins sold 5,000 shares of the stock in a transaction on 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 directly 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 disclosure for this sale can be found here. Insiders sold a total of 45,438 shares of company stock worth $2,609,985 over the last three months. Insiders own 0.54% of the company's stock.

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.