Webster Financial Corporation (NYSE:WBS) Director William L. Atwell Sells 16,823 Shares

Key Points

• William L. Atwell, a director at Webster Financial, sold 16,823 shares of stock for approximately $995,921.60, resulting in a 35.24% decrease in his position.
• Webster Financial reported earnings of $1.52 per share for the quarter, exceeding the consensus estimate by $0.09, while its revenue grew by 16.5% compared to the same quarter last year.
• The company has announced a $700 million stock buyback plan, indicating that its board believes its shares are currently undervalued.

Webster Financial Corporation (NYSE:WBS - Get Free Report) Director William L. Atwell sold 16,823 shares of the company's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $59.20, for a total transaction of $995,921.60. Following the sale, the director directly owned 30,915 shares of the company's stock, valued at approximately $1,830,168. This represents a 35.24% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink.

Webster Financial Trading Down 2.9%

NYSE:WBS traded down $1.69 during trading hours on Friday, reaching $55.96. 1,447,858 shares of the stock were exchanged, compared to its average volume of 1,470,211. Webster Financial Corporation has a twelve month low of $39.43 and a twelve month high of $63.99. The business has a 50-day moving average of $55.75 and a two-hundred day moving average of $53.52. The company has a market capitalization of $9.41 billion, a price-to-earnings ratio of 11.35, a PEG ratio of 0.54 and a beta of 1.04. 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 posted its earnings results on Thursday, July 17th. The financial services provider reported $1.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.43 by $0.09. The firm had revenue of $715.80 million for the quarter, compared to analyst estimates of $716.59 million. Webster Financial had a return on equity of 10.84% and a net margin of 20.06%. Webster Financial's revenue was up 16.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.26 EPS. On average, equities analysts predict that Webster Financial Corporation will post 5.88 EPS 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 issued a dividend of $0.40 per share. The ex-dividend date is Monday, August 11th. This represents a $1.60 dividend on an annualized basis and a yield of 2.9%. Webster Financial's dividend payout ratio is 32.45%.

Webster Financial declared that its board has approved a stock buyback program on Thursday, May 1st that allows the company to repurchase $700.00 million in shares. This repurchase authorization allows the financial services provider to reacquire up to 8.7% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On Webster Financial

Several institutional investors have recently modified their holdings of the business. Picton Mahoney Asset Management acquired a new position in Webster Financial during the 1st quarter worth $25,000. Headlands Technologies LLC purchased a new position in Webster Financial in the fourth quarter worth approximately $32,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in Webster Financial by 327.2% during the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 739 shares of the financial services provider's stock worth $38,000 after acquiring an additional 566 shares in the last quarter. IFP Advisors Inc increased its position in shares of Webster Financial by 3,628.6% in the 2nd quarter. IFP Advisors Inc now owns 783 shares of the financial services provider's stock valued at $43,000 after purchasing an additional 762 shares during the last quarter. Finally, TCTC Holdings LLC increased its position in shares of Webster Financial by 118.4% in the 1st quarter. TCTC Holdings LLC now owns 832 shares of the financial services provider's stock valued at $43,000 after purchasing an additional 451 shares during the last quarter. Institutional investors and hedge funds own 85.58% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on WBS shares. Seaport Res Ptn cut Webster Financial from a "strong-buy" rating to a "hold" rating in a report on Friday, July 25th. Keefe, Bruyette & Woods boosted their price target on shares of Webster Financial from $65.00 to $68.00 and gave the company an "outperform" rating in a research report on Friday, July 18th. Wells Fargo & Company raised their price objective 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. Truist Financial reaffirmed 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, Barclays increased their price target on shares of Webster Financial from $72.00 to $77.00 and gave the company an "overweight" rating in a research note on Tuesday, July 8th. Four equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus 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.