Webster Financial Co. (NYSE:WBS) Sees Significant Decline in Short Interest

Webster Financial Co. (NYSE:WBS) was the recipient of a large drop in short interest during the month of June. As of June 30th, there was short interest totalling 3,290,000 shares, a drop of 13.0% from the June 15th total of 3,780,000 shares. Based on an average daily trading volume, of 1,240,000 shares, the short-interest ratio is currently 2.7 days.

Analysts Set New Price Targets

WBS has been the topic of a number of recent analyst reports. Raymond James reiterated an “outperform” rating and set a $60.00 target price on shares of Webster Financial in a research note on Tuesday, March 26th. Citigroup lowered their price objective on shares of Webster Financial from $60.00 to $55.00 and set a “buy” rating on the stock in a research report on Wednesday, April 24th. StockNews.com raised shares of Webster Financial from a “sell” rating to a “hold” rating in a research report on Friday, April 26th. JPMorgan Chase & Co. lowered their price target on shares of Webster Financial from $63.00 to $58.00 and set an “overweight” rating on the stock in a report on Thursday, June 27th. Finally, Royal Bank of Canada reduced their price objective on Webster Financial from $57.00 to $54.00 and set an “outperform” rating for the company in a report on Wednesday, April 24th. Three investment analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $55.50.

Webster Financial Price Performance

Shares of NYSE WBS opened at $47.87 on Tuesday. The stock has a fifty day moving average of $43.54 and a 200-day moving average of $46.58. The stock has a market cap of $8.21 billion, a PE ratio of 9.81, a price-to-earnings-growth ratio of 0.56 and a beta of 1.30. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.86 and a current ratio of 0.86. Webster Financial has a fifty-two week low of $36.36 and a fifty-two week high of $53.39.

Webster Financial (NYSE:WBS) last posted its earnings results on Tuesday, April 23rd. The financial services provider reported $1.35 earnings per share for the quarter, missing analysts’ consensus estimates of $1.37 by ($0.02). Webster Financial had a net margin of 21.09% and a return on equity of 12.55%. The company had revenue of $667.10 million for the quarter, compared to analysts’ expectations of $680.72 million. During the same period in the previous year, the firm earned $1.49 EPS. The firm’s quarterly revenue was up .2% compared to the same quarter last year. Equities research analysts anticipate that Webster Financial will post 5.53 earnings per share for the current year.

Webster Financial Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, May 16th. Stockholders of record on Monday, May 6th were given a dividend of $0.40 per share. The ex-dividend date was Friday, May 3rd. This represents a $1.60 dividend on an annualized basis and a dividend yield of 3.34%. Webster Financial’s dividend payout ratio (DPR) is currently 32.79%.

Insider Buying and Selling at Webster Financial

In other news, insider Daniel Bley sold 2,280 shares of the company’s stock in a transaction that occurred on Wednesday, May 1st. The stock was sold at an average price of $44.80, for a total value of $102,144.00. Following the completion of the transaction, the insider now directly owns 28,693 shares of the company’s stock, valued at $1,285,446.40. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.88% of the company’s stock.

Hedge Funds Weigh In On Webster Financial

Institutional investors have recently added to or reduced their stakes in the business. Norges Bank purchased a new position in shares of Webster Financial in the 4th quarter worth about $97,217,000. American Century Companies Inc. boosted its position in Webster Financial by 1,773.9% during the third quarter. American Century Companies Inc. now owns 1,324,457 shares of the financial services provider’s stock valued at $53,389,000 after buying an additional 1,253,778 shares during the period. Azora Capital LP grew its stake in shares of Webster Financial by 146.3% during the fourth quarter. Azora Capital LP now owns 1,477,198 shares of the financial services provider’s stock valued at $74,983,000 after buying an additional 877,540 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Webster Financial by 12.3% during the fourth quarter. Dimensional Fund Advisors LP now owns 3,916,013 shares of the financial services provider’s stock valued at $198,785,000 after buying an additional 430,331 shares during the last quarter. Finally, Sei Investments Co. increased its holdings in shares of Webster Financial by 39.5% in the fourth quarter. Sei Investments Co. now owns 1,477,642 shares of the financial services provider’s stock worth $75,006,000 after buying an additional 418,716 shares during the period. 85.58% of the stock is currently owned by institutional investors.

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.