Webster Financial Corporation (NYSE:WBS) Short Interest Up 43,052.2% in July

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 in 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 days-to-cover ratio is currently 2.8 days. Based on an average daily trading volume, of 1,410,000 shares, the days-to-cover ratio is currently 2.8 days.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the company. UBS Group reaffirmed a "buy" rating and set a $69.00 target price on shares of Webster Financial in a research report on Wednesday, July 9th. Citigroup boosted their target price on Webster Financial from $65.00 to $71.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. JPMorgan Chase & Co. boosted their target price on Webster Financial from $55.00 to $65.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 1st. Wells Fargo & Company boosted their target price on Webster Financial from $70.00 to $75.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Finally, Royal Bank Of Canada set a $60.00 price target on Webster Financial and gave the company an "outperform" rating in a research report on Friday, April 25th. Four analysts have rated the stock with a hold rating and ten have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $66.77.

Insiders Place Their Bets

In other news, insider Charles L. Wilkins sold 5,000 shares of the business's stock in a transaction on Friday, June 6th. The stock was sold at an average price of $53.25, for a total transaction of $266,250.00. Following the sale, the insider directly owned 31,534 shares of the company's stock, valued at $1,679,185.50. The trade was a 13.69% decrease in their ownership of the stock. 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 business's stock in a transaction on Tuesday, July 22nd. The stock was sold at an average price of $60.31, for a total value of $196,007.50. Following the sale, the chief accounting officer directly owned 15,755 shares in the company, valued at $950,184.05. This trade represents 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 have sold 39,638 shares of company stock valued at $2,258,145. 0.54% of the stock is currently owned by insiders.

Institutional Trading of Webster Financial

Hedge funds have recently added to or reduced their stakes in the business. Kovitz Investment Group Partners LLC raised its holdings in shares of Webster Financial by 3.2% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 5,912 shares of the financial services provider's stock worth $326,000 after buying an additional 186 shares in the last quarter. Perigon Wealth Management LLC increased its holdings in Webster Financial by 4.5% during the 2nd quarter. Perigon Wealth Management LLC now owns 4,348 shares of the financial services provider's stock valued at $237,000 after purchasing an additional 189 shares in the last quarter. PenderFund Capital Management Ltd. increased its holdings in Webster Financial by 4.0% during the 1st quarter. PenderFund Capital Management Ltd. now owns 5,578 shares of the financial services provider's stock valued at $288,000 after purchasing an additional 215 shares in the last quarter. Penbrook Management LLC increased its holdings in Webster Financial by 5.2% during the 1st quarter. Penbrook Management LLC now owns 5,080 shares of the financial services provider's stock valued at $262,000 after purchasing an additional 250 shares in the last quarter. Finally, Cetera Investment Advisers increased its holdings in Webster Financial by 1.2% during the 4th quarter. Cetera Investment Advisers now owns 21,299 shares of the financial services provider's stock valued at $1,176,000 after purchasing an additional 259 shares in the last quarter. Institutional investors own 85.58% of the company's stock.

Webster Financial Stock Down 0.4%

WBS stock traded down $0.25 during mid-day trading on Tuesday, hitting $56.37. The stock had a trading volume of 296,247 shares, compared to its average volume of 1,315,084. The stock has a market capitalization of $9.48 billion, a price-to-earnings ratio of 11.43, a PEG ratio of 0.51 and a beta of 1.04. The company has a fifty day moving average of $55.86 and a 200 day moving average of $53.43. Webster Financial has a 1-year low of $39.43 and a 1-year high of $63.99. The company has a current ratio of 0.86, a quick ratio of 0.85 and a debt-to-equity ratio of 0.47.

Webster Financial (NYSE:WBS - Get Free Report) last released its quarterly 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. 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 was up 16.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.26 EPS. On average, equities analysts expect that Webster Financial will post 5.88 EPS for the current fiscal year.

Webster Financial announced that its Board of Directors has authorized a stock repurchase plan on Thursday, May 1st that allows the company to buyback $700.00 million in shares. This buyback authorization allows 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 leadership believes its shares are undervalued.

Webster Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Monday, August 11th will be paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Monday, August 11th. Webster Financial's dividend payout ratio is 32.45%.

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.