Webster Financial (NYSE:WBS) Posts Earnings Results, Beats Estimates By $0.09 EPS

Webster Financial (NYSE:WBS - Get Free Report) released its quarterly earnings data on Thursday. The financial services provider reported $1.52 earnings per share for the quarter, beating the consensus estimate of $1.43 by $0.09, Zacks reports. Webster Financial had a return on equity of 10.84% and a net margin of 20.06%. The firm had revenue of $715.80 million during the quarter, compared to the consensus estimate of $716.59 million. During the same period last year, the business posted $1.26 EPS. Webster Financial's quarterly revenue was up 16.5% on a year-over-year basis.

Webster Financial Stock Up 1.4%

NYSE:WBS traded up $0.84 during trading hours on Friday, hitting $60.89. 2,025,907 shares of the stock traded hands, compared to its average volume of 1,281,767. The firm has a 50 day moving average price of $54.33 and a 200 day moving average price of $53.20. 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 has a fifty-two week low of $39.43 and a fifty-two week high of $63.99. The firm has a market cap of $10.24 billion, a price-to-earnings ratio of 12.35, a PEG ratio of 0.78 and a beta of 1.00.

Webster Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 22nd. Stockholders of record on Monday, May 12th were given a dividend of $0.40 per share. The ex-dividend date of this dividend was Monday, May 12th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.63%. Webster Financial's dividend payout ratio (DPR) is presently 32.45%.

Insider Activity

In other news, Director Lauren States sold 2,200 shares of the company's stock in a transaction on Thursday, May 22nd. The shares were sold at an average price of $50.80, for a total value of $111,760.00. Following the transaction, the director directly owned 14,620 shares of the company's stock, valued at approximately $742,696. This represents a 13.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Javier L. Evans sold 7,800 shares of the company's stock in a transaction 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 completion of the transaction, the insider directly owned 19,820 shares in the company, valued at $1,042,135.60. This trade represents a 28.24% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 18,000 shares of company stock valued at $934,210 in the last 90 days. Company insiders own 0.54% of the company's stock.

Institutional Trading of Webster Financial

Hedge funds have recently modified their holdings of the company. Goldman Sachs Group Inc. grew its holdings in Webster Financial by 37.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 652,921 shares of the financial services provider's stock worth $33,658,000 after acquiring an additional 176,258 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Webster Financial by 4.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 476,095 shares of the financial services provider's stock worth $24,543,000 after acquiring an additional 20,090 shares during the period. Royal Bank of Canada grew its holdings in Webster Financial by 2.2% during the 1st quarter. Royal Bank of Canada now owns 94,385 shares of the financial services provider's stock worth $4,866,000 after acquiring an additional 2,049 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Webster Financial by 15.2% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 40,127 shares of the financial services provider's stock worth $2,069,000 after acquiring an additional 5,299 shares during the period. Finally, Cubist Systematic Strategies LLC acquired a new stake in Webster Financial during the 1st quarter worth $114,000. Institutional investors and hedge funds own 85.58% of the company's stock.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Keefe, Bruyette & Woods raised their price target on Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a research report on Friday. Barclays raised their price target on Webster Financial from $72.00 to $77.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 8th. JPMorgan Chase & Co. lifted their price objective on Webster Financial from $55.00 to $65.00 and gave the company an "overweight" rating in a research report on Tuesday, July 1st. Royal Bank Of Canada set a $60.00 price objective on Webster Financial and gave the company an "outperform" rating in a research report on Friday, April 25th. Finally, Jefferies Financial Group started coverage on Webster Financial in a research report on Wednesday, May 21st. They issued a "buy" rating and a $65.00 price objective for the company. Three research analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $66.77.

Webster Financial announced that its Board of Directors has approved a share repurchase plan on Thursday, May 1st that authorizes the company to buyback $700.00 million in shares. This buyback authorization authorizes the financial services provider to reacquire up to 8.7% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board believes its shares are undervalued.

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.