Webster Financial (NYSE:WBS) Sees Strong Trading Volume - Still a Buy?

Key Points

• Webster Financial shares rose 1.4% to $79.06 amid trading volume that was 15% above the prior session.
• Analyst sentiment remains mixed: four analysts rate the stock a Buy, eleven a Hold and one a Sell, producing an overall “Hold” rating and an average price target of $74.25.
• The company narrowly missed quarterly EPS estimates but exceeded revenue expectations, while maintaining a quarterly dividend of $0.40 per share, equivalent to a 2.0% yield. Institutional investors own 85.58% of the stock.

Webster Financial Corporation (NYSE:WBS - Get Free Report) shares saw strong trading volume on Wednesday . Approximately 4,383,888 shares traded hands during trading, an increase of 15% from the previous session's volume of 3,809,242 shares.The stock last traded at $79.06 and had previously closed at $77.95.

Analysts Set New Price Targets

WBS has been the topic of a number of research analyst reports. UBS Group initiated coverage on Webster Financial in a research report on Tuesday, April 7th. They set a "neutral" rating and a $69.00 target price on the stock. Barclays raised their price target on Webster Financial from $75.00 to $78.00 and gave the company an "equal weight" rating in a research report on Monday. Keefe, Bruyette & Woods decreased their price objective on shares of Webster Financial from $79.00 to $77.50 and set an "outperform" rating on the stock in a research report on Friday, May 1st. Weiss Ratings reissued a "buy (b)" rating on shares of Webster Financial in a research note on Friday, June 12th. Finally, Royal Bank Of Canada raised their target price on shares of Webster Financial from $75.00 to $76.00 and gave the company a "sector perform" rating in a report on Wednesday, July 22nd. Four research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Webster Financial currently has an average rating of "Hold" and an average price target of $74.25.

Webster Financial Stock Up 1.4%

The company has a debt-to-equity ratio of 0.46, a current ratio of 0.87 and a quick ratio of 0.87. The firm has a 50-day simple moving average of $75.30 and a two-hundred day simple moving average of $72.04. The company has a market cap of $12.81 billion, a PE ratio of 12.85 and a beta of 1.01.

Webster Financial (NYSE:WBS - Get Free Report) last issued its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.61 by ($0.01). The company had revenue of $769.23 million during the quarter, compared to analysts' expectations of $755.80 million. Webster Financial had a net margin of 22.78% and a return on equity of 11.23%. The firm's revenue was up 3.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.52 earnings per share. Research analysts anticipate that Webster Financial Corporation will post 6.55 earnings per share for the current fiscal year.

Webster Financial Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Monday, August 10th will be issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date is Monday, August 10th. Webster Financial's dividend payout ratio is 26.02%.

Institutional Investors Weigh In On Webster Financial

A number of hedge funds and other institutional investors have recently modified their holdings of WBS. Norges Bank acquired a new position in shares of Webster Financial in the fourth quarter valued at approximately $142,035,000. Alyeska Investment Group L.P. raised its holdings in Webster Financial by 7,442.8% in the 3rd quarter. Alyeska Investment Group L.P. now owns 2,032,937 shares of the financial services provider's stock valued at $120,838,000 after acquiring an additional 2,005,985 shares during the last quarter. Whitebox Advisors LLC acquired a new position in Webster Financial in the 1st quarter valued at $133,634,000. Assenagon Asset Management S.A. purchased a new position in shares of Webster Financial during the 1st quarter worth $109,754,000. Finally, Bank of America Corp DE boosted its holdings in shares of Webster Financial by 67.6% during the first quarter. Bank of America Corp DE now owns 3,727,744 shares of the financial services provider's stock worth $258,780,000 after purchasing an additional 1,504,075 shares during the last quarter. 85.58% of the stock is currently owned by hedge funds and other institutional investors.

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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