Short Interest in Webster Financial Corporation (NYSE:WBS) Increases By 24.0%

Key Points

• Short interest rose 24.0% to 10,318,343 shares as of March 31, representing about 6.4% of the stock and a short-interest ratio of 3.1 days based on average daily volume.
• Institutional investors own roughly 85.58% of Webster Financial, while several hedge funds recently initiated very small new stakes in the company.
• Webster beat quarterly EPS estimates ($1.59 vs. $1.52), pays a $0.40 quarterly dividend (about a 2.2% yield), and carries a consensus analyst rating of Hold with a $74.07 target.

Webster Financial Corporation (NYSE:WBS - Get Free Report) saw a significant growth in short interest in March. As of March 31st, there was short interest totaling 10,318,343 shares, a growth of 24.0% from the March 15th total of 8,320,949 shares. Approximately 6.4% of the company's stock are short sold. Based on an average trading volume of 3,339,371 shares, the short-interest ratio is currently 3.1 days.

Institutional Investors Weigh In On Webster Financial

Hedge funds have recently made changes to their positions in the business. BOKF NA bought a new stake in shares of Webster Financial during the third quarter valued at approximately $26,000. Flagship Harbor Advisors LLC bought a new stake in shares of Webster Financial during the fourth quarter valued at approximately $28,000. Root Financial Partners LLC bought a new stake in shares of Webster Financial during the third quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Webster Financial during the third quarter valued at approximately $29,000. Finally, Atlas Capital Advisors Inc. bought a new stake in shares of Webster Financial during the fourth quarter valued at approximately $31,000. Institutional investors own 85.58% of the company's stock.

Webster Financial Stock Performance

Shares of Webster Financial stock traded down $0.34 during trading on Thursday, hitting $72.18. 1,088,009 shares of the stock were exchanged, compared to its average volume of 4,196,209. The stock's fifty day moving average is $70.54 and its 200 day moving average is $64.33. The stock has a market cap of $11.64 billion, a PE ratio of 12.21 and a beta of 1.03. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.86 and a current ratio of 0.86. Webster Financial has a 12 month low of $43.83 and a 12 month high of $74.00.

Webster Financial (NYSE:WBS - Get Free Report) last released its quarterly earnings results on Friday, January 23rd. The financial services provider reported $1.59 earnings per share for the quarter, beating analysts' consensus estimates of $1.52 by $0.07. The company had revenue of $760.48 million for the quarter, compared to analysts' expectations of $731.95 million. Webster Financial had a return on equity of 11.10% and a net margin of 22.67%.During the same quarter in the previous year, the company posted $1.43 earnings per share. As a group, sell-side analysts anticipate that Webster Financial will post 5.88 EPS for the current year.

Webster Financial Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 19th. Stockholders of record on Monday, February 9th were issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend was Monday, February 9th. Webster Financial's payout ratio is 27.07%.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on WBS shares. Truist Financial downgraded Webster Financial from a "buy" rating to a "hold" rating and set a $74.00 target price for the company. in a research note on Wednesday, February 4th. Royal Bank Of Canada cut shares of Webster Financial from a "moderate buy" rating to a "hold" rating and set a $75.00 price target on the stock. in a report on Wednesday, February 4th. Keefe, Bruyette & Woods upped their price target on shares of Webster Financial from $77.00 to $79.00 and gave the company an "outperform" rating in a report on Monday, March 2nd. Santander cut shares of Webster Financial from a "neutral" rating to an "underweight" rating in a report on Tuesday, March 3rd. Finally, Morgan Stanley cut their price target on shares of Webster Financial from $77.00 to $75.00 and set an "equal weight" rating on the stock in a report on Thursday, February 5th. Four equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Webster Financial presently has a consensus rating of "Hold" and a consensus price target of $74.07.

About Webster Financial

Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.

In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.

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