Basswood Capital Management L.L.C. Reduces Stake in Webster Financial Co. (NYSE:WBS)

Basswood Capital Management L.L.C. decreased its position in Webster Financial Co. (NYSE:WBS) by 37.7% in the 4th quarter, HoldingsChannel.com reports. The fund owned 1,107,140 shares of the financial services provider’s stock after selling 670,273 shares during the quarter. Webster Financial comprises approximately 3.6% of Basswood Capital Management L.L.C.’s portfolio, making the stock its 3rd largest holding. Basswood Capital Management L.L.C.’s holdings in Webster Financial were worth $61,136,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Norges Bank purchased a new stake in Webster Financial during the fourth quarter worth about $120,497,000. TimesSquare Capital Management LLC increased its stake in shares of Webster Financial by 759.8% during the 4th quarter. TimesSquare Capital Management LLC now owns 823,280 shares of the financial services provider’s stock worth $45,462,000 after purchasing an additional 727,530 shares during the last quarter. Wealthfront Advisers LLC bought a new stake in shares of Webster Financial in the 4th quarter worth approximately $27,163,000. ExodusPoint Capital Management LP bought a new stake in shares of Webster Financial in the 4th quarter worth approximately $25,464,000. Finally, Boston Partners lifted its stake in Webster Financial by 1,491.7% in the fourth quarter. Boston Partners now owns 485,776 shares of the financial services provider’s stock valued at $26,838,000 after purchasing an additional 455,257 shares during the last quarter. Hedge funds and other institutional investors own 85.58% of the company’s stock.

Insider Activity at Webster Financial

In related news, Director Laurence C. Morse sold 13,217 shares of the firm’s stock in a transaction that occurred on Wednesday, February 19th. The shares were sold at an average price of $59.07, for a total transaction of $780,728.19. Following the completion of the sale, the director now owns 18,808 shares of the company’s stock, valued at $1,110,988.56. This trade represents a 41.27 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Daniel Bley sold 1,800 shares of the company’s stock in a transaction that occurred on Tuesday, April 29th. The shares were sold at an average price of $47.84, for a total value of $86,112.00. Following the completion of the transaction, the insider now directly owns 21,517 shares in the company, valued at $1,029,373.28. This trade represents a 7.72 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 23,017 shares of company stock valued at $1,326,280 in the last 90 days. Corporate insiders own 0.54% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on WBS. StockNews.com upgraded Webster Financial from a “sell” rating to a “hold” rating in a research note on Saturday, January 11th. Royal Bank of Canada set a $60.00 price objective on shares of Webster Financial and gave the company an “outperform” rating in a report on Friday, April 25th. JPMorgan Chase & Co. reduced their target price on shares of Webster Financial from $67.00 to $65.00 and set an “overweight” rating for the company in a research note on Tuesday, January 7th. Raymond James reduced their price objective on shares of Webster Financial from $65.00 to $58.00 and set an “outperform” rating for the company in a research note on Wednesday, April 2nd. Finally, Morgan Stanley dropped their target price on Webster Financial from $75.00 to $66.00 and set an “equal weight” rating on the stock in a research report on Thursday, March 13th. Three analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $62.73.

Webster Financial Trading Up 4.0 %

NYSE WBS opened at $49.71 on Friday. The stock’s 50 day moving average is $48.64 and its 200 day moving average is $54.40. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.34. The firm has a market capitalization of $8.37 billion, a PE ratio of 11.38, a P/E/G ratio of 1.02 and a beta of 0.98. Webster Financial Co. has a twelve month low of $39.34 and a twelve month high of $63.99.

Webster Financial (NYSE:WBS) last issued its quarterly earnings results on Thursday, April 24th. The financial services provider reported $1.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.38 by ($0.08). The business had revenue of $704.80 million during the quarter, compared to the consensus estimate of $708.46 million. Webster Financial had a return on equity of 10.82% and a net margin of 18.39%. The firm’s revenue was up 5.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.35 earnings per share. Research analysts forecast that Webster Financial Co. will post 5.88 earnings per share for the current fiscal year.

Webster Financial declared that its Board of Directors has initiated a share repurchase plan on Thursday, May 1st that allows the company to buyback $700.00 million in outstanding shares. This buyback authorization allows the financial services provider to purchase up to 8.7% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Webster Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, May 22nd. Investors of record on Monday, May 12th will be paid a $0.40 dividend. The ex-dividend date is Monday, May 12th. This represents a $1.60 annualized dividend and a dividend yield of 3.22%. Webster Financial’s payout ratio is currently 36.04%.

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.