Webster Financial Corporation (NYSE:WBS) Shares Bought by LPL Financial LLC

Key Points

• LPL Financial LLC increased its stake in Webster Financial Corporation by 9.9% in Q1, acquiring an additional 6,948 shares, bringing its holdings to 77,103 shares valued at approximately $3.98 million.
• Webster Financial recently announced a $700 million stock buyback plan, allowing the company to reacquire up to 8.7% of its shares, typically indicating that leadership believes the stock is undervalued.
• Analysts have set a range of new price targets for Webster Financial, with Citigroup raising its target from $65 to $71 and Barclays from $72 to $77, while the consensus rating remains a "Moderate Buy" with an average target price of around $66.77.

LPL Financial LLC grew its stake in shares of Webster Financial Corporation (NYSE:WBS - Free Report) by 9.9% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 77,103 shares of the financial services provider's stock after acquiring an additional 6,948 shares during the quarter. LPL Financial LLC's holdings in Webster Financial were worth $3,975,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of the company. Kovitz Investment Group Partners LLC grew its holdings in shares of Webster Financial by 3.2% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 5,912 shares of the financial services provider's stock worth $326,000 after purchasing an additional 186 shares during the period. Penbrook Management LLC grew its holdings in shares of Webster Financial by 5.2% during the 1st 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 period. Cetera Investment Advisers grew its holdings in shares of Webster Financial by 1.2% during the 4th 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 period. Beverly Hills Private Wealth LLC grew its holdings in shares of Webster Financial by 4.5% during the 1st 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 during the period. Finally, Allworth Financial LP grew its holdings in shares of Webster Financial by 43.7% during the 1st quarter. Allworth Financial LP now owns 941 shares of the financial services provider's stock worth $45,000 after purchasing an additional 286 shares during the period. Hedge funds and other institutional investors own 85.58% of the company's stock.

Insider Transactions at Webster Financial

In other news, Director William L. Atwell sold 16,823 shares of the firm's stock in a transaction on Monday, July 28th. The stock was sold at an average price of $59.20, for a total transaction of $995,921.60. Following the transaction, the director directly owned 30,915 shares of the company's stock, valued at approximately $1,830,168. This trade represents a 35.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Charles L. Wilkins sold 5,000 shares of the firm's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $53.25, for a total value of $266,250.00. Following the transaction, the insider directly owned 31,534 shares in the company, valued at $1,679,185.50. This trade represents a 13.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 39,638 shares of company stock valued at $2,258,145 over the last three months. 0.54% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several research firms have recently commented on WBS. Citigroup increased their target price on Webster Financial from $65.00 to $71.00 and gave the company a "buy" rating in a research note on Friday, July 18th. Barclays increased their target price on Webster Financial from $72.00 to $77.00 and gave the company an "overweight" rating in a research note on Tuesday, July 8th. Royal Bank Of Canada set a $60.00 target price on Webster Financial and gave the company an "outperform" rating in a research note on Friday, April 25th. UBS Group restated a "buy" rating and set a $69.00 price objective on shares of Webster Financial in a research note on Wednesday, July 9th. Finally, Seaport Res Ptn lowered shares of Webster Financial from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 25th. Four equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $66.77.

Webster Financial Price Performance

Shares of NYSE WBS opened at $58.41 on Friday. 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 fifty day moving average price is $56.62 and its two-hundred day moving average price is $53.37. The firm has a market capitalization of $9.71 billion, a PE ratio of 11.85, a P/E/G ratio of 0.53 and a beta of 1.04.

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

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

Webster Financial Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Shareholders of record on Monday, August 11th will be given a $0.40 dividend. The ex-dividend date of this dividend is Monday, August 11th. This represents a $1.60 annualized dividend and a yield of 2.7%. Webster Financial's dividend payout ratio (DPR) is currently 32.45%.

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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