Wells Fargo & Co (WFC) Shares Gap Down on Analyst Downgrade

Wells Fargo & Co (NYSE:WFC) shares gapped down prior to trading on Tuesday after Zacks Investment Research downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $57.78, but opened at $58.16. Wells Fargo & Co shares last traded at $56.05, with a volume of 55518148 shares trading hands.

A number of other research analysts have also weighed in on WFC. Vetr upgraded Wells Fargo & Co from a “sell” rating to a “hold” rating and set a $52.91 price objective on the stock in a report on Monday, October 16th. BMO Capital Markets raised their price objective on Wells Fargo & Co from $49.00 to $50.00 and gave the company a “market perform” rating in a report on Monday, October 16th. UBS Group set a $55.00 price objective on Wells Fargo & Co and gave the company a “hold” rating in a report on Monday, October 16th. Keefe, Bruyette & Woods restated a “buy” rating and issued a $59.00 price objective on shares of Wells Fargo & Co in a report on Monday, October 16th. Finally, Royal Bank of Canada restated a “buy” rating and issued a $60.00 price objective on shares of Wells Fargo & Co in a report on Wednesday, November 15th. Six research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and thirteen have given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average target price of $62.90.

In other Wells Fargo & Co news, Director Ronald Sargent acquired 9,000 shares of the business’s stock in a transaction that occurred on Monday, February 12th. The stock was purchased at an average cost of $55.98 per share, with a total value of $503,820.00. Following the transaction, the director now owns 81 shares of the company’s stock, valued at $4,534.38. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, VP Richard Levy sold 97,000 shares of the firm’s stock in a transaction dated Thursday, November 30th. The stock was sold at an average price of $56.47, for a total value of $5,477,590.00. The disclosure for this sale can be found here. Insiders sold a total of 184,482 shares of company stock valued at $10,471,050 over the last ninety days. Corporate insiders own 0.22% of the company’s stock.

Several large investors have recently modified their holdings of WFC. Boston Partners increased its position in shares of Wells Fargo & Co by 140.1% during the 2nd quarter. Boston Partners now owns 19,088,621 shares of the financial services provider’s stock worth $1,057,700,000 after purchasing an additional 11,139,780 shares during the last quarter. Capital World Investors boosted its holdings in Wells Fargo & Co by 10.8% during the 2nd 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 during the period. Capital Research Global Investors boosted its holdings in Wells Fargo & Co by 19.7% during the 2nd 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 during the period. Dimensional Fund Advisors LP boosted its holdings in Wells Fargo & Co by 26.7% during the 2nd 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 during the period. Finally, Janus Henderson Group PLC boosted its holdings in Wells Fargo & Co by 396.3% during the 2nd 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 during the period. 76.00% of the stock is owned by hedge funds and other institutional investors.

The company has a market capitalization of $294,180.00, a price-to-earnings ratio of 14.46, a P/E/G ratio of 1.52 and a beta of 1.01. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.88 and a current ratio of 0.90.

Wells Fargo & Co (NYSE:WFC) last announced its earnings results on Friday, January 12th. The financial services provider reported $0.97 EPS for the quarter, missing analysts’ consensus estimates of $1.04 by ($0.07). Wells Fargo & Co had a net margin of 22.57% and a return on equity of 12.24%. The firm had revenue of $22.05 billion for the quarter, compared to analysts’ expectations of $22.64 billion. During the same quarter last year, the business earned $0.96 earnings per share. The business’s revenue was up 2.2% compared to the same quarter last year. research analysts anticipate that Wells Fargo & Co will post 4.72 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 1st. Investors of record on Friday, February 2nd will be issued a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a yield of 2.61%. The ex-dividend date of this dividend is Thursday, February 1st. Wells Fargo & Co’s dividend payout ratio (DPR) is 37.77%.

Wells Fargo & Co declared that its Board of Directors has approved a share repurchase plan on Tuesday, January 23rd that permits the company to buyback 350,000,000 shares. This buyback authorization permits the financial services provider to repurchase shares of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

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Wells Fargo & Co Company Profile

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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