Webster Financial Corporation (NYSE:WBS) Declares $0.40 Quarterly Dividend

Key Points

• Webster Financial Corporation has announced a quarterly dividend of $0.40 per share, which is set to be paid on August 21st to stockholders of record as of August 11th, representing an annualized dividend of $1.60 and a dividend yield of 2.75%.
• The company has a payout ratio of 24.6%, indicating that its dividend is well-covered by earnings, with expectations of future earnings at $6.68 per share.
• Webster Financial's stock shows positive analyst sentiment, with multiple firms raising their price targets, indicating a consensus rating of "Moderate Buy" with a target price of $66.77.

Webster Financial Corporation (NYSE:WBS - Get Free Report) announced a quarterly dividend on Wednesday, July 30th, RTT News reports. Stockholders of record on Monday, August 11th will be paid a dividend of 0.40 per share by the financial services provider on Thursday, August 21st. This represents a c) annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, August 11th.

Webster Financial has a dividend payout ratio of 24.6% meaning its dividend is sufficiently covered by earnings. Analysts expect Webster Financial to earn $6.68 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 24.0%.

Webster Financial Stock Down 2.9%

Shares of WBS traded down $1.69 during trading hours on Friday, hitting $55.96. The stock had a trading volume of 1,447,858 shares, compared to its average volume of 1,470,211. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.86 and a quick ratio of 0.85. The firm has a 50 day simple moving average of $55.75 and a 200-day simple moving average of $53.48. The firm has a market capitalization of $9.41 billion, a P/E ratio of 11.35, a price-to-earnings-growth ratio of 0.52 and a beta of 1.04. Webster Financial has a 1-year low of $39.43 and a 1-year high of $63.99.

Webster Financial (NYSE:WBS - Get Free Report) last issued its earnings results on Thursday, July 17th. The financial services provider reported $1.52 EPS for the quarter, beating the consensus estimate of $1.43 by $0.09. The company had revenue of $715.80 million during the quarter, compared to the consensus estimate of $716.59 million. Webster Financial had a return on equity of 10.84% and a net margin of 20.06%. The firm's revenue for the quarter was up 16.5% compared to the same quarter last year. During the same period last year, the business posted $1.26 EPS. Sell-side analysts predict that Webster Financial will post 5.88 EPS for the current fiscal year.

Insider Transactions at Webster Financial

In other news, insider Charles L. Wilkins sold 5,000 shares of the business's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $53.25, for a total value of $266,250.00. Following the transaction, the insider owned 31,534 shares in the company, valued at $1,679,185.50. The trade was a 13.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director William L. Atwell sold 16,823 shares of the business's stock in a transaction that occurred on 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 in the company, valued at $1,830,168. The trade was a 35.24% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 40,838 shares of company stock worth $2,318,109. 0.54% of the stock is owned by insiders.

Institutional Investors Weigh In On Webster Financial

Hedge funds have recently modified their holdings of the stock. Picton Mahoney Asset Management bought a new stake in shares of Webster Financial in the 1st quarter worth approximately $25,000. Headlands Technologies LLC bought a new stake in shares of Webster Financial in the 4th quarter worth approximately $32,000. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in shares of Webster Financial by 327.2% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 739 shares of the financial services provider's stock worth $38,000 after purchasing an additional 566 shares during the period. IFP Advisors Inc raised its holdings 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 worth $43,000 after purchasing an additional 762 shares during the period. Finally, TCTC Holdings LLC raised its holdings 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 worth $43,000 after purchasing an additional 451 shares during the period. Institutional investors own 85.58% of the company's stock.

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.