Short Interest in Webster Financial Corporation (NYSE:WBS) Rises By 43,052.2%

Key Points

• Webster Financial Corporation experienced a dramatic increase in short interest in July, rising 43,052.2% to 3,970,000 shares.
• Analysts have mixed views on the stock, with Barclays raising its price target to $77.00 while Seaport Res Ptn downgraded it from "strong-buy" to "hold."
• Webster Financial reported $1.52 earnings per share for the last quarter, exceeding estimates, and announced a quarterly dividend of $0.40, representing a 2.9% yield.

Webster Financial Corporation (NYSE:WBS - Get Free Report) was the target of a significant increase in short interest during the month of July. As of July 15th, there was short interest totaling 3,970,000 shares, anincreaseof43,052.2% from the June 30th total of 9,200 shares. Based on an average daily trading volume, of 1,410,000 shares, the short-interest ratio is currently 2.8 days. Based on an average daily trading volume, of 1,410,000 shares, the short-interest ratio is currently 2.8 days.

Insiders Place Their Bets

In related news, insider Charles L. Wilkins sold 5,000 shares of the company's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $53.25, for a total transaction of $266,250.00. Following the completion of the transaction, the insider owned 31,534 shares of the company's stock, valued at approximately $1,679,185.50. This represents a 13.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Javier L. Evans sold 7,800 shares of the company's stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $52.58, for a total transaction of $410,124.00. Following the transaction, the insider directly owned 19,820 shares of the company's stock, valued at $1,042,135.60. This trade represents a 28.24% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 40,838 shares of company stock valued at $2,318,109. 0.54% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Picton Mahoney Asset Management purchased a new position in shares of Webster Financial in the first quarter valued at $25,000. Headlands Technologies LLC acquired a new stake in Webster Financial in the fourth quarter valued at $32,000. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in Webster Financial by 327.2% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 739 shares of the financial services provider's stock valued at $38,000 after acquiring an additional 566 shares in the last quarter. TCTC Holdings LLC raised its holdings in Webster Financial by 118.4% in the first quarter. TCTC Holdings LLC now owns 832 shares of the financial services provider's stock valued at $43,000 after acquiring an additional 451 shares in the last quarter. Finally, IFP Advisors Inc raised its holdings in Webster Financial by 3,628.6% in the second quarter. IFP Advisors Inc now owns 783 shares of the financial services provider's stock valued at $43,000 after acquiring an additional 762 shares in the last quarter. 85.58% of the stock is currently owned by hedge funds and other institutional investors.

Webster Financial Stock Down 2.9%

Shares of WBS stock traded down $1.69 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 firm has a market capitalization of $9.41 billion, a price-to-earnings ratio of 11.35, a P/E/G ratio of 0.52 and a beta of 1.04. The stock's 50 day moving average is $55.75 and its 200-day moving average is $53.48. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.85 and a current ratio of 0.86. Webster Financial has a 52-week low of $39.43 and a 52-week high of $63.99.

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. The business had revenue of $715.80 million during the quarter, compared to the consensus estimate of $716.59 million. Webster Financial had a net margin of 20.06% and a return on equity of 10.84%. The business's quarterly revenue was up 16.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.26 earnings per share. As a group, research analysts expect that Webster Financial will post 5.88 earnings per share for the current year.

Webster Financial Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Monday, August 11th will be paid a $0.40 dividend. The ex-dividend date is Monday, August 11th. This represents a $1.60 annualized dividend and a dividend yield of 2.9%. Webster Financial's dividend payout ratio is 32.45%.

Webster Financial declared that its Board of Directors has authorized a stock repurchase plan on Thursday, May 1st that permits the company to repurchase $700.00 million in shares. This repurchase authorization permits the financial services provider to repurchase up to 8.7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Analyst Ratings Changes

WBS has been the subject of several research analyst reports. Wells Fargo & Company upped their price target 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. Royal Bank Of Canada set a $60.00 price target on shares of Webster Financial and gave the stock an "outperform" rating in a research report on Friday, April 25th. UBS Group reaffirmed a "buy" rating and set a $69.00 price target on shares of Webster Financial in a research report on Wednesday, July 9th. JPMorgan Chase & Co. boosted their price objective on shares of Webster Financial from $55.00 to $65.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 1st. Finally, Barclays boosted their price objective on shares of Webster Financial from $72.00 to $77.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 8th. Four investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $66.77.

About Webster Financial

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.