Webster Financial Co. (NYSE:WBS) Short Interest Update

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

Webster Financial Stock Up 2.8%

Shares of WBS traded up $1.44 during midday trading on Friday, reaching $53.76. 1,022,412 shares of the stock were exchanged, compared to its average volume of 1,282,575. Webster Financial has a 12-month low of $39.34 and a 12-month high of $63.99. The firm has a 50 day simple moving average of $48.54 and a 200-day simple moving average of $53.73. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.34. The company has a market cap of $9.04 billion, a price-to-earnings ratio of 12.30, a P/E/G ratio of 1.02 and a beta of 1.00.

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

Webster Financial announced that its Board of Directors has authorized a stock buyback program on Thursday, May 1st that permits the company to buyback $700.00 million in outstanding shares. This buyback authorization permits the financial services provider to buy up to 8.7% of its shares through open market purchases. Shares buyback programs are often a sign that the company's management believes its shares are undervalued.

Webster Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 22nd. Stockholders of record on Monday, May 12th were issued a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 2.98%. The ex-dividend date of this dividend was Monday, May 12th. Webster Financial's payout ratio is presently 36.04%.

Insider Buying and Selling at Webster Financial

In other news, Director Lauren States sold 2,200 shares of the firm's stock in a transaction on Thursday, May 22nd. The stock was sold at an average price of $50.80, for a total value of $111,760.00. Following the completion of the transaction, the director now owns 14,620 shares in the company, valued at $742,696. This trade represents a 13.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Javier L. Evans sold 7,800 shares of Webster Financial 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 sale, the insider now owns 19,820 shares of the company's stock, valued at approximately $1,042,135.60. This represents a 28.24% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 13,000 shares of company stock valued at $667,960. 0.54% of the stock is owned by company insiders.

Institutional Trading of Webster Financial

Institutional investors have recently modified their holdings of the company. FMR LLC boosted its stake in Webster Financial by 1.2% in the 4th quarter. FMR LLC now owns 8,493,426 shares of the financial services provider's stock valued at $469,007,000 after buying an additional 99,908 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in Webster Financial by 7.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 7,108,082 shares of the financial services provider's stock valued at $366,408,000 after buying an additional 487,264 shares in the last quarter. Invesco Ltd. boosted its stake in Webster Financial by 3.1% in the 1st quarter. Invesco Ltd. now owns 5,049,297 shares of the financial services provider's stock valued at $260,291,000 after buying an additional 153,236 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in Webster Financial by 0.9% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 4,597,943 shares of the financial services provider's stock valued at $237,025,000 after buying an additional 42,406 shares in the last quarter. Finally, Capital International Investors boosted its stake in Webster Financial by 0.9% in the 4th quarter. Capital International Investors now owns 4,130,379 shares of the financial services provider's stock valued at $228,000,000 after buying an additional 35,039 shares in the last quarter. Institutional investors and hedge funds own 85.58% of the company's stock.

Analyst Ratings Changes

A number of analysts have recently issued reports on WBS shares. Wells Fargo & Company decreased their target price on Webster Financial from $75.00 to $60.00 and set an "overweight" rating for the company in a report on Wednesday, April 9th. Truist Financial started coverage on Webster Financial in a report on Tuesday, May 13th. They set a "buy" rating and a $61.00 target price for the company. Royal Bank of Canada set a $60.00 target price on Webster Financial and gave the stock an "outperform" rating in a report on Friday, April 25th. 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 report on Thursday, March 13th. Finally, Jefferies Financial Group started coverage on Webster Financial in a report on Wednesday, May 21st. They set a "buy" rating and a $65.00 target price for the company. Three investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus 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.