Short Interest in Webster Financial Corporation (NYSE:WBS) Declines By 20.3%

Webster Financial Corporation (NYSE:WBS) was the recipient of a large decline in short interest in December. As of December 31st, there was short interest totaling 3,358,203 shares, a decline of 20.3% from the December 15th total of 4,212,263 shares. Currently, 2.1% of the shares of the stock are short sold. Based on an average daily volume of 1,177,110 shares, the short-interest ratio is currently 2.9 days. Based on an average daily volume of 1,177,110 shares, the short-interest ratio is currently 2.9 days. Currently, 2.1% of the shares of the stock are short sold.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Citigroup restated a “buy” rating on shares of Webster Financial in a research report on Tuesday, December 30th. UBS Group reaffirmed a “buy” rating on shares of Webster Financial in a research note on Tuesday, January 6th. Morgan Stanley upped their price objective on Webster Financial from $64.00 to $77.00 and gave the stock an “underperform” rating in a report on Monday, September 29th. TD Cowen decreased their price objective on Webster Financial from $78.00 to $77.00 and set a “buy” rating on the stock in a report on Wednesday, January 7th. Finally, Raymond James Financial boosted their target price on Webster Financial from $65.00 to $73.00 and gave the stock an “outperform” rating in a research report on Wednesday, January 7th. Fourteen research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Webster Financial presently has an average rating of “Moderate Buy” and a consensus target price of $72.77.

Webster Financial Trading Down 1.9%

Webster Financial stock traded down $1.22 during trading hours on Tuesday, reaching $63.32. The company had a trading volume of 544,483 shares, compared to its average volume of 1,315,477. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.85 and a quick ratio of 0.85. Webster Financial has a 12-month low of $39.43 and a 12-month high of $66.54. The company has a 50-day moving average price of $61.97 and a 200 day moving average price of $60.00. The firm has a market cap of $10.21 billion, a price-to-earnings ratio of 11.80, a P/E/G ratio of 0.54 and a beta of 1.05.

Webster Financial (NYSE:WBS) last issued its earnings results on Friday, October 17th. The financial services provider reported $1.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.52 by $0.02. Webster Financial had a net margin of 21.32% and a return on equity of 11.07%. The firm had revenue of $756.06 million for the quarter, compared to analysts’ expectations of $725.22 million. During the same quarter last year, the business earned $1.34 earnings per share. Equities analysts forecast that Webster Financial will post 5.88 earnings per share for the current year.

Webster Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, November 20th. Stockholders of record on Monday, November 10th were paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Monday, November 10th. Webster Financial’s dividend payout ratio is 29.80%.

Insider Activity

In other Webster Financial news, CEO John R. Ciulla sold 8,000 shares of the company’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $55.45, for a total value of $443,600.00. Following the transaction, the chief executive officer directly owned 231,872 shares in the company, valued at $12,857,302.40. This represents a 3.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.54% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Pallas Capital Advisors LLC purchased a new position in shares of Webster Financial during the second quarter valued at about $474,000. Assenagon Asset Management S.A. increased its holdings in shares of Webster Financial by 959.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 358,294 shares of the financial services provider’s stock worth $21,297,000 after buying an additional 324,471 shares during the last quarter. Norges Bank purchased a new stake in shares of Webster Financial during the 2nd quarter valued at about $131,780,000. Pzena Investment Management LLC lifted its holdings in shares of Webster Financial by 1.5% in the 2nd quarter. Pzena Investment Management LLC now owns 1,612,758 shares of the financial services provider’s stock valued at $88,057,000 after acquiring an additional 23,605 shares during the last quarter. Finally, M&T Bank Corp increased its stake in Webster Financial by 550.7% during the second quarter. M&T Bank Corp now owns 44,295 shares of the financial services provider’s stock worth $2,418,000 after acquiring an additional 37,488 shares during the last quarter. Hedge funds and other institutional investors own 85.58% of the company’s stock.

About Webster Financial

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.