Investors Buy High Volume of Put Options on Webster Financial (WBS)

Webster Financial Co. (NYSE:WBS) was the target of unusually large options trading on Thursday. Traders purchased 3,055 put options on the company. This is an increase of 1,910% compared to the typical volume of 152 put options.

Several equities research analysts have issued reports on the company. Morgan Stanley raised their price target on Webster Financial from $61.00 to $62.00 and gave the company an “underweight” rating in a report on Tuesday, July 24th. ValuEngine raised Webster Financial from a “hold” rating to a “buy” rating in a report on Wednesday, August 8th. Barclays raised their price target on Webster Financial from $67.00 to $70.00 and gave the company an “equal weight” rating in a report on Friday, July 20th. Boenning Scattergood reissued a “hold” rating on shares of Webster Financial in a report on Thursday, July 19th. Finally, Wells Fargo & Co lifted their target price on Webster Financial from $63.00 to $65.00 and gave the stock a “market perform” rating in a report on Tuesday, June 26th. One analyst has rated the stock with a sell rating, eight have given a hold rating and four have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and an average target price of $63.00.

Webster Financial stock traded down $1.17 during midday trading on Friday, reaching $60.55. The company’s stock had a trading volume of 570,161 shares, compared to its average volume of 522,664. Webster Financial has a 52 week low of $51.68 and a 52 week high of $69.63. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 0.69. The stock has a market cap of $5.44 billion, a PE ratio of 23.38, a P/E/G ratio of 2.02 and a beta of 1.18.

Webster Financial (NYSE:WBS) last released its earnings results on Thursday, July 19th. The financial services provider reported $0.92 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.87 by $0.05. The firm had revenue of $293.40 million for the quarter, compared to analysts’ expectations of $291.53 million. Webster Financial had a return on equity of 11.46% and a net margin of 23.85%. The business’s revenue for the quarter was up 11.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.64 earnings per share. As a group, analysts expect that Webster Financial will post 3.65 earnings per share for the current year.

In related news, EVP Charles L. Wilkins sold 3,000 shares of the firm’s stock in a transaction on Wednesday, July 25th. The shares were sold at an average price of $67.51, for a total value of $202,530.00. Following the completion of the transaction, the executive vice president now directly owns 18,579 shares of the company’s stock, valued at $1,254,268.29. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Daniel Bley sold 1,469 shares of the firm’s stock in a transaction on Monday, July 30th. The shares were sold at an average price of $66.36, for a total transaction of $97,482.84. Following the completion of the transaction, the executive vice president now directly owns 19,329 shares of the company’s stock, valued at $1,282,672.44. The disclosure for this sale can be found here. 1.96% of the stock is currently owned by corporate insiders.

Several institutional investors have recently bought and sold shares of WBS. Zurcher Kantonalbank Zurich Cantonalbank lifted its stake in shares of Webster Financial by 19.8% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,737 shares of the financial services provider’s stock worth $318,000 after acquiring an additional 949 shares during the period. Swiss National Bank lifted its stake in Webster Financial by 2.3% in the first quarter. Swiss National Bank now owns 160,400 shares of the financial services provider’s stock valued at $8,886,000 after buying an additional 3,600 shares during the period. Schwab Charles Investment Management Inc. lifted its stake in Webster Financial by 5.8% in the first quarter. Schwab Charles Investment Management Inc. now owns 556,758 shares of the financial services provider’s stock valued at $30,845,000 after buying an additional 30,405 shares during the period. Synovus Financial Corp acquired a new position in Webster Financial in the first quarter valued at approximately $724,000. Finally, Aperio Group LLC lifted its stake in Webster Financial by 4.3% in the first quarter. Aperio Group LLC now owns 48,415 shares of the financial services provider’s stock valued at $2,682,000 after buying an additional 1,993 shares during the period. 92.26% of the stock is currently owned by institutional investors.

About Webster Financial

Webster Financial Corporation operates as the holding company for Webster Bank, National Association that provides financial services to individuals, families, and businesses in the United States. It operates through four segments: Commercial Banking, Community Banking, HSA Bank, and Private Banking.

Read More: Outstanding Shares and The Effect on Share Price

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