Webster Financial Co. (NYSE:WBS) Sees Large Growth in Short Interest

Webster Financial Co. (NYSE:WBS - Get Free Report) was the target of a large growth in short interest in May. As of May 15th, there was short interest totalling 3,940,000 shares, a growth of 19.4% from the April 30th total of 3,300,000 shares. Based on an average daily trading volume, of 1,420,000 shares, the short-interest ratio is presently 2.8 days. Currently, 2.3% of the company's stock are sold short.

Insider Activity at Webster Financial

In related news, insider Javier L. Evans sold 7,800 shares of the business's stock in a transaction dated Wednesday, May 28th. The stock was sold at an average price of $52.58, for a total value of $410,124.00. Following the completion of the sale, the insider now directly owns 19,820 shares of the company's stock, valued at $1,042,135.60. The trade was a 28.24% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Daniel Bley sold 1,800 shares of the business's stock in a transaction dated Tuesday, April 29th. The shares were sold at an average price of $47.84, for a total value of $86,112.00. Following the completion of the sale, the insider now directly owns 21,517 shares of the company's stock, valued at $1,029,373.28. The trade was a 7.72% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 13,000 shares of company stock valued at $667,960 in the last three months. Corporate insiders own 0.54% of the company's stock.

Institutional Trading of Webster Financial

Institutional investors and hedge funds have recently bought and sold shares of the stock. Trust Point Inc. purchased a new stake in Webster Financial during the 4th quarter valued at $330,000. Lecap Asset Management Ltd. bought a new stake in shares of Webster Financial during the 4th quarter worth approximately $506,000. Platform Technology Partners purchased a new position in shares of Webster Financial in the 4th quarter valued at $215,000. Rhumbline Advisers grew its stake in Webster Financial by 0.4% during the 4th quarter. Rhumbline Advisers now owns 497,313 shares of the financial services provider's stock valued at $27,462,000 after purchasing an additional 2,002 shares during the last quarter. Finally, State of New Jersey Common Pension Fund D boosted its stake in shares of Webster Financial by 4.0% in the fourth quarter. State of New Jersey Common Pension Fund D now owns 52,832 shares of the financial services provider's stock worth $2,917,000 after buying an additional 2,032 shares during the last quarter. 85.58% of the stock is currently owned by hedge funds and other institutional investors.

Webster Financial Trading Down 0.3%

Shares of NYSE:WBS traded down $0.16 on Wednesday, reaching $51.90. 1,337,364 shares of the company traded hands, compared to its average volume of 1,279,481. The business's 50-day simple moving average is $48.46 and its 200 day simple moving average is $53.91. Webster Financial has a 52 week low of $39.34 and a 52 week high of $63.99. The stock has a market capitalization of $8.73 billion, a P/E ratio of 11.88, a price-to-earnings-growth ratio of 1.02 and a beta of 0.98. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.34.

Webster Financial (NYSE:WBS - Get Free Report) last announced its quarterly earnings data on Thursday, April 24th. The financial services provider reported $1.30 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.38 by ($0.08). Webster Financial had a net margin of 18.39% and a return on equity of 10.82%. The company had revenue of $704.80 million for the quarter, compared to the consensus estimate of $708.46 million. During the same period last year, the business posted $1.35 earnings per share. The firm's quarterly revenue was up 5.7% compared to the same quarter last year. As a group, equities analysts anticipate that Webster Financial will post 5.88 EPS for the current fiscal year.

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

Webster Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 22nd. Stockholders of record on Monday, May 12th were paid a dividend of $0.40 per share. The ex-dividend date was Monday, May 12th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 3.08%. Webster Financial's dividend payout ratio (DPR) is currently 36.04%.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Morgan Stanley decreased their target price on Webster Financial from $75.00 to $66.00 and set an "equal weight" rating for the company in a research report on Thursday, March 13th. Keefe, Bruyette & Woods decreased their price objective on Webster Financial from $70.00 to $65.00 and set an "outperform" rating for the company in a report on Friday, April 25th. Truist Financial initiated coverage on Webster Financial in a report on Tuesday, May 13th. They set a "buy" rating and a $61.00 price objective for the company. Wells Fargo & Company dropped their price objective on Webster Financial from $75.00 to $60.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 9th. Finally, Jefferies Financial Group started coverage on Webster Financial in a research report on Wednesday, May 21st. They set a "buy" rating and a $65.00 target price on the stock. Three research analysts have rated the stock with a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, Webster Financial presently has an average rating of "Moderate Buy" and an average target price of $63.75.

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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