Short Interest in Webster Financial Corporation (NYSE:WBS) Increases By 26.5%

Key Points

• Webster Financial Corporation experienced a significant increase in short interest, rising by 26.5% in August, with a total of 3,920,000 shares short sold by August 31st.
• The company announced a quarterly dividend of $0.40, with a dividend yield of 2.6%, and a payout ratio currently at 32.45%.
• Analysts are optimistic about Webster Financial, with a consensus average price target of $67.00 and eleven analysts rating the stock as a Buy.

Webster Financial Corporation (NYSE:WBS - Get Free Report) was the recipient of a large increase in short interest in the month of August. As of August 31st, there was short interest totaling 3,920,000 shares, an increase of 26.5% from the August 15th total of 3,100,000 shares. Based on an average daily volume of 1,360,000 shares, the short-interest ratio is presently 2.9 days. Approximately 2.4% of the shares of the stock are short sold. Approximately 2.4% of the shares of the stock are short sold. Based on an average daily volume of 1,360,000 shares, the short-interest ratio is presently 2.9 days.

Analyst Upgrades and Downgrades

Several brokerages have commented on WBS. Truist Financial reissued a "buy" rating and issued a $67.00 price target (up from $61.00) on shares of Webster Financial in a report on Friday, July 11th. Citigroup raised their price target on shares of Webster Financial from $65.00 to $71.00 and gave the company a "buy" rating in a report on Friday, July 18th. UBS Group reissued a "buy" rating and issued a $69.00 price target on shares of Webster Financial in a report on Wednesday, July 9th. Wells Fargo & Company raised their price target on shares of Webster Financial from $70.00 to $75.00 and gave the company an "overweight" rating in a report on Friday, July 18th. Finally, Cantor Fitzgerald initiated coverage on shares of Webster Financial in a report on Wednesday, September 10th. They set an "overweight" rating and a $70.00 price objective for the company. Eleven equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Webster Financial has an average rating of "Moderate Buy" and an average price target of $67.00.

Insider Transactions at Webster Financial

In other Webster Financial news, CEO John R. Ciulla sold 8,000 shares of the firm's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $57.95, for a total value of $463,600.00. Following the completion of the transaction, the chief executive officer directly owned 239,872 shares of the company's stock, valued at $13,900,582.40. This trade represents 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 link. Also, CAO Albert Jen-Wen Wang sold 3,250 shares of the firm's stock in a transaction on Tuesday, July 22nd. The shares were sold at an average price of $60.31, for a total transaction of $196,007.50. Following the completion of the transaction, the chief accounting officer directly owned 15,755 shares of the company's stock, valued at approximately $950,184.05. The trade was a 17.10% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 36,445 shares of company stock worth $2,168,537. 0.54% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Webster Financial

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Picton Mahoney Asset Management purchased a new stake in shares of Webster Financial in the 1st quarter worth $25,000. Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in shares of 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 valued at $38,000 after purchasing an additional 566 shares during the last quarter. IFP Advisors Inc boosted its holdings in shares of Webster Financial by 3,628.6% during 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. Parkside Financial Bank & Trust boosted its holdings in shares of Webster Financial by 56.1% during the 2nd quarter. Parkside Financial Bank & Trust now owns 829 shares of the financial services provider's stock valued at $45,000 after purchasing an additional 298 shares during the last quarter. Finally, TCTC Holdings LLC boosted its holdings in shares of Webster Financial by 118.4% during 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. Hedge funds and other institutional investors own 85.58% of the company's stock.

Webster Financial Trading Down 1.4%

Shares of WBS stock traded down $0.86 during mid-day trading on Monday, reaching $60.68. The stock had a trading volume of 1,226,620 shares, compared to its average volume of 1,346,285. The company has a current ratio of 0.86, a quick ratio of 0.85 and a debt-to-equity ratio of 0.47. The firm has a market capitalization of $10.09 billion, a PE ratio of 12.31, a price-to-earnings-growth ratio of 0.56 and a beta of 1.07. Webster Financial has a 52-week low of $39.43 and a 52-week high of $63.99. The stock's 50-day moving average price is $59.76 and its two-hundred day moving average price is $53.96.

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. Webster Financial had a return on equity of 10.84% and a net margin of 20.06%.The company had revenue of $715.80 million for the quarter, compared to analysts' expectations of $716.59 million. During the same period last year, the firm earned $1.26 earnings per share. Webster Financial's quarterly revenue was up 16.5% on a year-over-year basis. Equities analysts expect that Webster Financial will post 5.88 earnings per share for the current fiscal year.

Webster Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 21st. Shareholders of record on Monday, August 11th were issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date was Monday, August 11th. Webster Financial's dividend payout ratio is 32.45%.

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.