BidaskClub Lowers Wells Fargo & Company (WFC) to Strong Sell
BidaskClub cut shares of Wells Fargo & Company (NYSE:WFC) from a sell rating to a strong sell rating in a report issued on Wednesday.
Several other research firms have also recently issued reports on WFC. Vining Sparks upgraded shares of Wells Fargo & to a strong-buy rating and set a $65.00 target price on the stock in a research note on Thursday, April 27th. Credit Suisse Group reiterated an outperform rating and issued a $40.00 target price (up from $36.00) on shares of Wells Fargo & in a research note on Friday, April 14th. Jefferies Group LLC reiterated a hold rating and issued a $62.00 target price on shares of Wells Fargo & in a research note on Monday, May 8th. Evercore ISI reiterated an outperform rating and issued a $64.00 target price on shares of Wells Fargo & in a research note on Tuesday, April 11th. Finally, Deutsche Bank AG reiterated a buy rating on shares of Wells Fargo & in a research note on Monday, July 3rd. Six equities research analysts have rated the stock with a sell rating, fourteen have given a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating to the stock. The stock presently has a consensus rating of Hold and a consensus price target of $55.87.
Shares of Wells Fargo & (NYSE WFC) opened at 52.84 on Wednesday. The firm has a market capitalization of $262.44 billion, a P/E ratio of 13.01 and a beta of 0.95. Wells Fargo & has a 52-week low of $43.55 and a 52-week high of $59.99. The stock has a 50 day moving average of $54.49 and a 200-day moving average of $55.11.
Wells Fargo & (NYSE:WFC) last released its quarterly earnings data on Friday, July 14th. The financial services provider reported $1.07 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.02 by $0.05. The company had revenue of $22.20 billion during the quarter, compared to the consensus estimate of $22.23 billion. Wells Fargo & had a net margin of 23.25% and a return on equity of 12.65%. Wells Fargo &’s revenue for the quarter was up .2% on a year-over-year basis. During the same period last year, the firm earned $1.01 EPS. Equities analysts expect that Wells Fargo & will post $4.17 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Friday, September 1st. Stockholders of record on Friday, August 4th will be paid a dividend of $0.39 per share. This is a positive change from Wells Fargo &’s previous quarterly dividend of $0.38. The ex-dividend date is Wednesday, August 2nd. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.95%. Wells Fargo &’s payout ratio is presently 38.42%.
Wells Fargo & announced that its Board of Directors has authorized a share repurchase plan on Wednesday, June 28th that authorizes the company to buyback $11.50 billion in outstanding shares. This buyback authorization authorizes the financial services provider to reacquire up to 4.2% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s management believes its stock is undervalued.
In other news, insider Michael J. Loughlin sold 20,000 shares of Wells Fargo & stock in a transaction dated Thursday, June 1st. The shares were sold at an average price of $52.16, for a total transaction of $1,043,200.00. Following the sale, the insider now owns 7 shares of the company’s stock, valued at approximately $365.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Mary T. Mack sold 38,988 shares of Wells Fargo & stock in a transaction dated Thursday, June 8th. The shares were sold at an average price of $52.58, for a total transaction of $2,049,989.04. The disclosure for this sale can be found here. Insiders have sold a total of 131,278 shares of company stock worth $6,940,120 in the last ninety days. Insiders own 0.22% of the company’s stock.
Several large investors have recently made changes to their positions in WFC. Boston Partners boosted its position in shares of Wells Fargo & by 50.0% in the first quarter. Boston Partners now owns 7,948,841 shares of the financial services provider’s stock worth $442,432,000 after buying an additional 2,648,763 shares during the period. Canada Pension Plan Investment Board boosted its position in shares of Wells Fargo & by 83.9% in the first quarter. Canada Pension Plan Investment Board now owns 7,972,116 shares of the financial services provider’s stock worth $443,728,000 after buying an additional 3,637,100 shares during the period. Gateway Investment Advisers LLC boosted its position in shares of Wells Fargo & by 1.6% in the first quarter. Gateway Investment Advisers LLC now owns 2,698,277 shares of the financial services provider’s stock worth $150,186,000 after buying an additional 41,531 shares during the period. Banco Santander S.A. acquired a new position in shares of Wells Fargo & during the fourth quarter worth about $3,173,000. Finally, Adviser Investments LLC acquired a new position in shares of Wells Fargo & during the first quarter worth about $5,588,000. 75.97% of the stock is currently owned by hedge funds and other institutional investors.
About Wells Fargo &
Wells Fargo & Company is a bank holding company. The Company is a diversified financial services company. It has three operating segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. The Company offers its services under three categories: personal, small business and commercial.
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