Webster Financial Corporation (NYSE:WBS) Short Interest Down 25.3% in April

Key Points

• Short interest fell 25.3% in April to 7,709,522 shares (as of April 15), leaving a short-interest ratio of 2.5 days and about 4.8% of shares sold short.
• Webster reported an earnings beat for the quarter with $1.57 EPS vs. $1.53 expected and revenue of $1.37 billion, alongside a 11.10% return on equity and a 22.67% net margin.
• The street consensus is a “Hold” with a $74.07 target (4 Buys, 11 Holds, 1 Sell), and institutional investors now own roughly 85.6% of the stock.

Webster Financial Corporation (NYSE:WBS - Get Free Report) was the recipient of a large drop in short interest during the month of April. As of April 15th, there was short interest totaling 7,709,522 shares, a drop of 25.3% from the March 31st total of 10,318,343 shares. Based on an average trading volume of 3,050,633 shares, the short-interest ratio is presently 2.5 days. Currently, 4.8% of the company's shares are short sold.

Wall Street Analysts Forecast Growth

WBS has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods raised their price target on Webster Financial from $77.00 to $79.00 and gave the stock an "outperform" rating in a research note on Monday, March 2nd. Royal Bank Of Canada lowered Webster Financial from a "moderate buy" rating to a "hold" rating and set a $75.00 target price for the company. in a research report on Wednesday, February 4th. Wells Fargo & Company raised Webster Financial from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 4th. UBS Group started coverage on Webster Financial in a research report on Tuesday, April 7th. They set a "neutral" rating and a $69.00 target price for the company. Finally, TD Cowen lowered Webster Financial from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, February 4th. Four analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Webster Financial presently has an average rating of "Hold" and a consensus target price of $74.07.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Y Intercept Hong Kong Ltd purchased a new position in shares of Webster Financial in the 3rd quarter valued at $578,000. Pinnbrook Capital Management LP purchased a new position in shares of Webster Financial in the 3rd quarter valued at $2,254,000. Dynamic Technology Lab Private Ltd increased its holdings in shares of Webster Financial by 115.3% in the 3rd quarter. Dynamic Technology Lab Private Ltd now owns 32,940 shares of the financial services provider's stock valued at $1,958,000 after acquiring an additional 17,640 shares during the period. Polar Asset Management Partners Inc. increased its holdings in shares of Webster Financial by 186.3% in the 3rd quarter. Polar Asset Management Partners Inc. now owns 53,817 shares of the financial services provider's stock valued at $3,199,000 after acquiring an additional 35,017 shares during the period. Finally, 140 Summer Partners LP purchased a new position in shares of Webster Financial in the 3rd quarter valued at $75,465,000. 85.58% of the stock is currently owned by hedge funds and other institutional investors.

Webster Financial Stock Down 0.2%

NYSE WBS traded down $0.12 on Wednesday, reaching $71.88. 3,633,660 shares of the stock traded hands, compared to its average volume of 4,011,497. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.86 and a current ratio of 0.86. The company has a fifty day moving average price of $70.55 and a 200-day moving average price of $65.20. The company has a market cap of $11.65 billion, a price-to-earnings ratio of 12.16 and a beta of 1.03. Webster Financial has a 12 month low of $45.94 and a 12 month high of $74.00.

Webster Financial (NYSE:WBS - Get Free Report) last issued its earnings results on Tuesday, April 28th. The financial services provider reported $1.57 earnings per share for the quarter, beating analysts' consensus estimates of $1.53 by $0.04. Webster Financial had a return on equity of 11.10% and a net margin of 22.67%.The business had revenue of $1.37 billion during the quarter, compared to analyst estimates of $749.96 million. During the same period in the previous year, the company posted $1.30 EPS. Webster Financial's revenue was up 4.4% on a year-over-year basis. As a group, research analysts forecast that Webster Financial will post 6.61 EPS for the current fiscal year.

Webster Financial Company Profile

Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.

In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.

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