T. Rowe Price Investment Management Inc. Reduces Stock Holdings in Webster Financial Corporation $WBS

Key Points

• T. Rowe Price Investment Management Inc. has reduced its stake in Webster Financial Corporation by 8.6%, selling 252,968 shares and now holding 2,695,733 shares worth approximately $138.97 million.
• Webster Financial's board has approved a $700 million stock repurchase plan, indicating the company's belief that its stock is currently undervalued.
• Following recent earnings, Webster Financial reported a 16.5% year-over-year revenue growth and a return on equity of 10.84%, with a consensus estimate predicting 5.88 EPS for the current year.

T. Rowe Price Investment Management Inc. lowered its position in Webster Financial Corporation (NYSE:WBS - Free Report) by 8.6% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,695,733 shares of the financial services provider's stock after selling 252,968 shares during the quarter. T. Rowe Price Investment Management Inc. owned 1.60% of Webster Financial worth $138,966,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Picton Mahoney Asset Management acquired a new stake in Webster Financial in the 1st quarter worth about $25,000. Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in Webster Financial by 327.2% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 739 shares of the financial services provider's stock worth $38,000 after buying an additional 566 shares during the last quarter. TCTC Holdings LLC boosted its stake in Webster Financial by 118.4% in the 1st quarter. TCTC Holdings LLC now owns 832 shares of the financial services provider's stock worth $43,000 after buying an additional 451 shares during the last quarter. Allworth Financial LP boosted its stake in Webster Financial by 43.7% in the 1st quarter. Allworth Financial LP now owns 941 shares of the financial services provider's stock worth $45,000 after buying an additional 286 shares during the last quarter. Finally, Versant Capital Management Inc boosted its stake in Webster Financial by 171.2% in the 1st quarter. Versant Capital Management Inc now owns 1,025 shares of the financial services provider's stock worth $53,000 after buying an additional 647 shares during the last quarter. Hedge funds and other institutional investors own 85.58% of the company's stock.

Webster Financial Stock Performance

NYSE WBS opened at $58.1720 on Friday. The firm has a market capitalization of $9.67 billion, a P/E ratio of 11.80, a P/E/G ratio of 0.53 and a beta of 1.04. Webster Financial Corporation has a 1-year low of $39.43 and a 1-year high of $63.99. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.86 and a quick ratio of 0.85. The business's 50-day simple moving average is $57.03 and its 200-day simple moving average is $53.31.

Webster Financial (NYSE:WBS - Get Free Report) last announced its earnings results on Thursday, July 17th. The financial services provider reported $1.52 EPS for the quarter, beating the consensus estimate of $1.43 by $0.09. The business had revenue of $715.80 million for 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 company's revenue was up 16.5% on a year-over-year basis. During the same period last year, the business posted $1.26 EPS. Equities analysts predict that Webster Financial Corporation will post 5.88 EPS for the current year.

Webster Financial announced that its Board of Directors has approved a stock repurchase plan on Thursday, May 1st that authorizes the company to buyback $700.00 million in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 8.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its stock is undervalued.

Webster Financial Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, August 21st. Investors of record on Monday, August 11th were issued a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Monday, August 11th. Webster Financial's dividend payout ratio (DPR) is presently 32.45%.

Insider Buying and Selling at Webster Financial

In related news, Director William L. Atwell sold 16,823 shares of the firm's stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $59.20, for a total transaction of $995,921.60. Following the sale, the director directly owned 30,915 shares in the company, valued at approximately $1,830,168. This trade represents a 35.24% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider James Mi Griffin sold 2,065 shares of the firm's stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $60.56, for a total value of $125,056.40. Following the sale, the insider owned 13,363 shares in the company, valued at approximately $809,263.28. The trade was a 13.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 45,438 shares of company stock worth $2,609,985. Insiders own 0.54% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on WBS. Barclays raised their price target on Webster Financial from $72.00 to $77.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 8th. Citigroup raised their price target on Webster Financial from $65.00 to $71.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Wells Fargo & Company raised their price target on Webster Financial from $70.00 to $75.00 and gave the stock an "overweight" rating in a research note on Friday, July 18th. UBS Group reaffirmed a "buy" rating and issued a $69.00 price objective on shares of Webster Financial in a research note on Wednesday, July 9th. Finally, JPMorgan Chase & Co. lifted their price objective on Webster Financial from $55.00 to $65.00 and gave the company an "overweight" rating in a research note on Tuesday, July 1st. Ten equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Webster Financial presently has a consensus rating of "Moderate Buy" and a consensus price target of $66.77.

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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