Insider Selling: Webster Financial (NYSE:WBS) CEO Sells 8,000 Shares of Stock

Key Points

• Webster Financial Corporation's CEO, John R. Ciulla, sold 8,000 shares of stock for $463,600, reducing his ownership by 3.23% to approximately 239,872 shares.
• The company's quarterly earnings report showed earnings per share of $1.52, exceeding estimates, with a 16.5% year-over-year revenue increase.
• Webster Financial has authorized a $700 million stock buyback program, allowing for the repurchase of up to 8.7% of its shares, indicating confidence in the stock's value.

Webster Financial Corporation (NYSE:WBS - Get Free Report) CEO John R. Ciulla sold 8,000 shares of the company's stock in a transaction dated 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 sale, the chief executive officer directly owned 239,872 shares of the company's stock, valued at $13,900,582.40. The trade was a 3.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

Webster Financial Stock Up 0.8%

Shares of WBS stock traded up $0.4490 on Wednesday, hitting $58.3790. The stock had a trading volume of 899,639 shares, compared to its average volume of 1,216,319. The firm has a market capitalization of $9.70 billion, a price-to-earnings ratio of 11.84, a P/E/G ratio of 0.53 and a beta of 1.04. The stock's 50 day moving average is $56.93 and its 200-day moving average is $53.32. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.85 and a current ratio of 0.86. Webster Financial Corporation has a 52-week low of $39.43 and a 52-week high of $63.99.

Webster Financial (NYSE:WBS - Get Free Report) last posted its quarterly earnings data 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. Webster Financial had a net margin of 20.06% and a return on equity of 10.84%. The company had revenue of $715.80 million during the quarter, compared to analysts' expectations of $716.59 million. During the same period in the prior year, the company posted $1.26 EPS. The firm's revenue for the quarter was up 16.5% on a year-over-year basis. As a group, research analysts expect that Webster Financial Corporation will post 5.88 earnings per share for the current year.

Webster Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Shareholders of record on Monday, August 11th will be given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Monday, August 11th. Webster Financial's dividend payout ratio is presently 32.45%.

Webster Financial declared that its Board of Directors has initiated a share buyback 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 repurchase up to 8.7% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Institutional Trading of Webster Financial

Institutional investors and hedge funds have recently made changes to their positions in the stock. Curi Capital LLC raised its position in Webster Financial by 0.3% during the second quarter. Curi Capital LLC now owns 68,500 shares of the financial services provider's stock valued at $3,740,000 after acquiring an additional 182 shares in the last quarter. Kovitz Investment Group Partners LLC increased its stake in shares of Webster Financial by 3.2% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 5,912 shares of the financial services provider's stock worth $326,000 after purchasing an additional 186 shares during the last quarter. BCGM Wealth Management LLC increased its stake in shares of Webster Financial by 1.2% during the 2nd quarter. BCGM Wealth Management LLC now owns 16,161 shares of the financial services provider's stock worth $882,000 after purchasing an additional 186 shares during the last quarter. Perigon Wealth Management LLC raised its holdings in shares of Webster Financial by 4.5% during the 2nd quarter. Perigon Wealth Management LLC now owns 4,348 shares of the financial services provider's stock valued at $237,000 after purchasing an additional 189 shares in the last quarter. Finally, Journey Strategic Wealth LLC raised its holdings in shares of Webster Financial by 3.2% during the 2nd quarter. Journey Strategic Wealth LLC now owns 6,747 shares of the financial services provider's stock valued at $368,000 after purchasing an additional 210 shares in the last quarter. 85.58% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Royal Bank Of Canada set a $60.00 price target on shares of Webster Financial and gave the stock an "outperform" rating in a research report on Friday, April 25th. JPMorgan Chase & Co. increased their price objective on shares of Webster Financial from $55.00 to $65.00 and gave the company an "overweight" rating in a research note on Tuesday, July 1st. Seaport Res Ptn lowered shares of Webster Financial from a "strong-buy" rating to a "hold" rating in a report on Friday, July 25th. Wells Fargo & Company boosted their target price on shares of Webster Financial from $70.00 to $75.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Finally, Raymond James Financial increased their price target on shares of Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a research report on Friday, July 18th. Ten equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $66.77.

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.