Webster Financial Corporation (NYSE:WBS) Director Sells $995,921.60 in Stock

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 Webster Financial stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $59.20, for a total value of $995,921.60. Following the completion of the transaction, the director 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 transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

Webster Financial Stock Down 1.1%

NYSE WBS traded down $0.65 during midday trading on Tuesday, hitting $58.89. 1,163,524 shares of the company traded hands, compared to its average volume of 1,323,162. Webster Financial Corporation has a 52 week low of $39.43 and a 52 week high of $63.99. The company's 50-day simple moving average is $55.25 and its 200-day simple moving average is $53.43. The company has a market cap of $9.91 billion, a PE ratio of 11.94, a price-to-earnings-growth ratio of 0.56 and a beta of 1.00. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.86 and a quick ratio of 0.85.

Webster Financial (NYSE:WBS - Get Free Report) last announced its earnings results on Thursday, July 17th. The financial services provider reported $1.52 earnings per share for the quarter, beating the consensus estimate 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 the consensus estimate of $716.59 million. During the same period last year, the firm earned $1.26 earnings per share. Webster Financial's revenue was up 16.5% compared to the same quarter last year. As a group, equities research analysts forecast that Webster Financial Corporation will post 5.88 earnings per share for the current year.

Webster Financial announced that its board has authorized a stock buyback plan 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 reacquire up to 8.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

Webster Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, May 22nd. Investors of record on Monday, May 12th were given a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.72%. The ex-dividend date was Monday, May 12th. Webster Financial's payout ratio is 32.45%.

Hedge Funds Weigh In On Webster Financial

Hedge funds and other institutional investors have recently bought and sold shares of the business. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Webster Financial during the second quarter valued at approximately $863,000. Applied Finance Capital Management LLC grew its stake in shares of Webster Financial by 8.8% during the 2nd quarter. Applied Finance Capital Management LLC now owns 4,624 shares of the financial services provider's stock worth $252,000 after purchasing an additional 375 shares during the period. New York State Teachers Retirement System increased its holdings in shares of Webster Financial by 0.7% during the 2nd quarter. New York State Teachers Retirement System now owns 270,336 shares of the financial services provider's stock valued at $14,760,000 after purchasing an additional 1,756 shares in the last quarter. Bayforest Capital Ltd lifted its stake in shares of Webster Financial by 150.0% in the 2nd quarter. Bayforest Capital Ltd now owns 4,935 shares of the financial services provider's stock valued at $269,000 after purchasing an additional 2,961 shares during the period. Finally, NorthRock Partners LLC boosted its holdings in Webster Financial by 12.0% during the second quarter. NorthRock Partners LLC now owns 10,777 shares of the financial services provider's stock worth $588,000 after buying an additional 1,158 shares in the last quarter. Institutional investors and hedge funds own 85.58% of the company's stock.

Wall Street Analysts Forecast Growth

WBS has been the subject of a number of analyst reports. UBS Group restated a "buy" rating and issued a $69.00 price target on shares of Webster Financial in a research report on Wednesday, July 9th. Citigroup upped their target price on Webster Financial from $65.00 to $71.00 and gave the company a "buy" rating in a research note on Friday, July 18th. Barclays increased their price target on Webster Financial from $72.00 to $77.00 and gave the stock an "overweight" rating in a report on Tuesday, July 8th. Wells Fargo & Company increased their target price on Webster Financial from $70.00 to $75.00 and gave the stock an "overweight" rating in a research note on Friday, July 18th. Finally, Truist Financial restated a "buy" rating and issued a $67.00 target price (up from $61.00) on shares of Webster Financial in a research note on Friday, July 11th. Four equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently 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.

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