Wellington Management Group LLP Has $23.58 Million Stock Holdings in Webster Financial Corporation $WBS

Key Points

• Wellington Management Group LLP reduced its stake in Webster Financial Corporation by 2.1%, owning approximately 457,406 shares worth about $23.58 million after selling 9,838 shares.
• Analysts have increased price targets for Webster Financial, with Barclays raising it from $72.00 to $77.00, while the consensus rating remains a "Moderate Buy" with a target of $66.77.
• Webster Financial announced a quarterly dividend of $0.40 per share, reflecting a 2.6% yield, alongside a $700 million stock repurchase plan, indicating management believes its stock is undervalued.

Wellington Management Group LLP trimmed its position in Webster Financial Corporation (NYSE:WBS - Free Report) by 2.1% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 457,406 shares of the financial services provider's stock after selling 9,838 shares during the period. Wellington Management Group LLP owned approximately 0.27% of Webster Financial worth $23,579,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Bessemer Group Inc. raised its position in shares of Webster Financial by 166.1% in the 1st quarter. Bessemer Group Inc. now owns 1,027 shares of the financial services provider's stock valued at $53,000 after acquiring an additional 641 shares during the period. GAMMA Investing LLC raised its position in shares of Webster Financial by 48.3% in the 1st quarter. GAMMA Investing LLC now owns 3,032 shares of the financial services provider's stock valued at $156,000 after acquiring an additional 987 shares during the period. Allworth Financial LP raised 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 acquiring an additional 286 shares during the period. First Foundation Advisors raised its position in shares of Webster Financial by 9.4% in the 1st quarter. First Foundation Advisors now owns 11,003 shares of the financial services provider's stock valued at $567,000 after acquiring an additional 950 shares during the period. Finally, TCTC Holdings LLC increased its stake in Webster Financial by 118.4% during the 1st quarter. TCTC Holdings LLC now owns 832 shares of the financial services provider's stock worth $43,000 after purchasing an additional 451 shares in the last quarter. 85.58% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on WBS shares. Barclays increased their target price on Webster Financial from $72.00 to $77.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 8th. UBS Group reissued a "buy" rating and set a $69.00 target price on shares of Webster Financial in a research note on Wednesday, July 9th. Citigroup increased their target price on Webster Financial from $65.00 to $71.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Truist Financial reissued a "buy" rating and set a $67.00 target price (up from $61.00) on shares of Webster Financial in a research note on Friday, July 11th. Finally, Seaport Res Ptn cut Webster Financial from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 25th. Ten analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Webster Financial currently has a consensus rating of "Moderate Buy" and a consensus price target of $66.77.

Webster Financial Price Performance

Shares of WBS opened at $61.1320 on Tuesday. The stock has a market capitalization of $10.16 billion, a P/E ratio of 12.40, a P/E/G ratio of 0.56 and a beta of 1.04. Webster Financial Corporation has a twelve month low of $39.43 and a twelve month high of $63.99. The company has a 50 day moving average of $57.41 and a 200-day moving average of $53.21. The company has a quick ratio of 0.85, a current ratio of 0.86 and a debt-to-equity ratio of 0.47.

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 the consensus estimate of $1.43 by $0.09. The company had revenue of $715.80 million during the quarter, compared to analysts' expectations of $716.59 million. Webster Financial had a net margin of 20.06% and a return on equity of 10.84%. The business's quarterly revenue was up 16.5% on a year-over-year basis. During the same period last year, the business earned $1.26 EPS. As a group, equities research analysts forecast that Webster Financial Corporation will post 5.88 EPS for the current fiscal year.

Webster Financial Dividend Announcement

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

Webster Financial announced that its board has approved a stock repurchase 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 shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its stock is undervalued.

Insider Activity at Webster Financial

In other news, insider Charles L. Wilkins sold 5,000 shares of the stock in a transaction that occurred 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 sale, the insider owned 31,534 shares of the company's stock, valued at approximately $1,679,185.50. This represents a 13.69% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director William L. Atwell sold 16,823 shares of the stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $59.20, for a total value of $995,921.60. Following the completion of the sale, the director directly owned 30,915 shares of the company's stock, valued at approximately $1,830,168. The trade was a 35.24% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 45,438 shares of company stock worth $2,609,985. 0.54% of the stock is currently owned by corporate insiders.

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.

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