Invesco Ltd. Purchases 153,236 Shares of Webster Financial Corporation (NYSE:WBS)

Key Points

• Invesco Ltd. increased its stake in Webster Financial Corporation by 3.1%, now owning approximately 5,049,297 shares valued at $260.29 million.
• Webster Financial announced a $700 million share repurchase program, indicating that company leadership believes its shares are undervalued.
• The company is expected to post earnings per share of 5.88 for the current year, with recent analyst ratings showing a consensus of "Moderate Buy" and an average price target of $66.77.

Invesco Ltd. grew its position in Webster Financial Corporation (NYSE:WBS - Free Report) by 3.1% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 5,049,297 shares of the financial services provider's stock after buying an additional 153,236 shares during the period. Invesco Ltd. owned 3.00% of Webster Financial worth $260,291,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Renaissance Technologies LLC acquired a new stake in shares of Webster Financial during the fourth quarter worth $1,587,000. Raymond James Financial Inc. acquired a new stake in shares of Webster Financial during the fourth quarter worth $14,735,000. Treasurer of the State of North Carolina grew its stake in shares of Webster Financial by 0.6% during the fourth quarter. Treasurer of the State of North Carolina now owns 75,049 shares of the financial services provider's stock worth $4,144,000 after purchasing an additional 470 shares during the period. Barclays PLC grew its stake in shares of Webster Financial by 27.5% during the fourth quarter. Barclays PLC now owns 379,666 shares of the financial services provider's stock worth $20,966,000 after purchasing an additional 81,832 shares during the period. Finally, PEAK6 LLC acquired a new stake in shares of Webster Financial during the fourth quarter worth $1,342,000. 85.58% of the stock is owned by institutional investors and hedge funds.

Webster Financial Stock Down 1.4%

Shares of Webster Financial stock traded down $0.84 during trading on Friday, reaching $57.59. The stock had a trading volume of 1,227,626 shares, compared to its average volume of 1,366,866. The stock has a fifty day moving average price of $56.69 and a two-hundred day moving average price of $53.31. Webster Financial Corporation has a 52 week low of $39.43 and a 52 week high of $63.99. The company has a current ratio of 0.86, a quick ratio of 0.85 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $9.57 billion, a price-to-earnings ratio of 11.68, a P/E/G ratio of 0.53 and a beta of 1.04.

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

Webster Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Shareholders of record on Monday, August 11th will be paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Monday, August 11th. Webster Financial's dividend payout ratio (DPR) is currently 32.45%.

Webster Financial announced that its board has initiated a stock repurchase plan on Thursday, May 1st that allows the company to repurchase $700.00 million in outstanding shares. This repurchase authorization allows the financial services provider to reacquire up to 8.7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

WBS has been the subject of a number of analyst reports. Keefe, Bruyette & Woods lifted their price objective on Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a research note on Friday, July 18th. UBS Group reissued a "buy" rating and issued a $69.00 target price on shares of Webster Financial in a research note on Wednesday, July 9th. JPMorgan Chase & Co. boosted their target price on Webster Financial from $55.00 to $65.00 and gave the company an "overweight" rating in a research note on Tuesday, July 1st. Barclays boosted 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. Finally, Jefferies Financial Group began coverage on Webster Financial in a research note on Wednesday, May 21st. They issued a "buy" rating and a $65.00 target price for the company. Four investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $66.77.

Insider Transactions at Webster Financial

In other Webster Financial news, CEO John R. Ciulla sold 8,000 shares of the firm's stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $57.95, for a total value of $463,600.00. Following the completion of the transaction, the chief executive officer directly owned 239,872 shares in the company, valued at $13,900,582.40. This trade represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Javier L. Evans sold 7,800 shares of the firm's stock in a transaction that occurred on Wednesday, May 28th. The shares were sold at an average price of $52.58, for a total value of $410,124.00. Following the completion of the transaction, the insider owned 19,820 shares of the company's stock, valued at approximately $1,042,135.60. This represents a 28.24% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 47,638 shares of company stock valued at $2,721,745. 0.54% of the stock is owned by insiders.

Webster Financial 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.