Wells Fargo (WFC) Given “Buy” Rating at Vining Sparks
Vining Sparks reissued their buy rating on shares of Wells Fargo (NYSE:WFC) in a research report sent to investors on Friday. They currently have a $65.00 target price on the financial services provider’s stock.
“While the recent issues surrounding WFC have definitely damaged its reputation, we believe the fundamental profitability and earnings power of WFC’s franchise is still intact and currently hidden by recent issues. WFC should still generate a mid to high-single digit underlying increase in shareholder value on an annualized basis from dividend payouts and TBV growth. We believe this strong value creation paired with its currently pressured valuation should provide long-term investors that can wait for the inflection point in the second half of 2018E the opportunity to realize total returns over 20% over the next 12 to 18 months.”,” the firm’s analyst commented.
A number of other equities research analysts also recently issued reports on WFC. Keefe, Bruyette & Woods restated a hold rating and issued a $57.00 target price on shares of Wells Fargo in a report on Thursday, April 5th. Morgan Stanley downgraded shares of Wells Fargo from an overweight rating to an underweight rating and lowered their target price for the company from $75.00 to $64.00 in a report on Tuesday, February 6th. Vetr upgraded shares of Wells Fargo from a hold rating to a buy rating and set a $54.10 target price for the company in a report on Wednesday, April 11th. Zacks Investment Research downgraded shares of Wells Fargo from a hold rating to a sell rating in a report on Monday, April 9th. Finally, Atlantic Securities upgraded shares of Wells Fargo from an underweight rating to a neutral rating and set a $64.00 target price for the company in a report on Wednesday, January 10th. Six analysts have rated the stock with a sell rating, nine have given a hold rating and fifteen have assigned a buy rating to the company. The company currently has an average rating of Hold and a consensus price target of $61.31.
Wells Fargo (NYSE:WFC) last released its earnings results on Friday, April 13th. The financial services provider reported $1.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.07 by $0.05. Wells Fargo had a net margin of 22.80% and a return on equity of 12.44%. The firm had revenue of $21.93 billion during the quarter, compared to the consensus estimate of $21.74 billion. During the same period in the previous year, the firm earned $1.00 earnings per share. Wells Fargo’s revenue was down 1.4% compared to the same quarter last year. research analysts predict that Wells Fargo will post 4.69 earnings per share for the current year.
Wells Fargo declared that its board has approved a share repurchase program on Tuesday, January 23rd that permits the company to buyback 350,000,000 outstanding shares. This buyback authorization permits the financial services provider to repurchase shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company’s management believes its stock is undervalued.
In other news, Director Ronald Sargent bought 9,000 shares of Wells Fargo stock in a transaction dated Monday, February 12th. The shares were acquired at an average cost of $55.98 per share, with a total value of $503,820.00. Following the completion of the transaction, the director now owns 81 shares in the company, valued at approximately $4,534.38. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.09% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of WFC. Capital World Investors raised its holdings in Wells Fargo by 10.8% in the second quarter. Capital World Investors now owns 111,753,448 shares of the financial services provider’s stock valued at $6,192,259,000 after acquiring an additional 10,927,679 shares in the last quarter. Capital Research Global Investors raised its holdings in Wells Fargo by 19.7% in the second quarter. Capital Research Global Investors now owns 45,327,803 shares of the financial services provider’s stock valued at $2,511,614,000 after acquiring an additional 7,445,414 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Wells Fargo by 26.7% in the second quarter. Dimensional Fund Advisors LP now owns 29,838,289 shares of the financial services provider’s stock valued at $1,653,464,000 after acquiring an additional 6,291,906 shares in the last quarter. Janus Henderson Group PLC raised its holdings in Wells Fargo by 396.3% in the second quarter. Janus Henderson Group PLC now owns 5,894,918 shares of the financial services provider’s stock valued at $326,655,000 after acquiring an additional 4,707,207 shares in the last quarter. Finally, Vanguard Group Inc. raised its holdings in Wells Fargo by 1.2% in the second quarter. Vanguard Group Inc. now owns 314,755,460 shares of the financial services provider’s stock valued at $17,440,601,000 after acquiring an additional 3,621,402 shares in the last quarter. 77.29% of the stock is currently owned by institutional investors and hedge funds.
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Wells Fargo Company Profile
Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. The company's Community Banking segment offers checking and savings accounts; credit and debit cards; and automobile, student, mortgage, home equity, and small business loans.
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