Wells Fargo & Company (NYSE:WFC) Shares Up 1.6% – Should You Buy?

Wells Fargo & Company (NYSE:WFC)’s share price was up 1.6% during mid-day trading on Monday . The company traded as high as $73.65 and last traded at $73.49. Approximately 2,502,868 shares traded hands during trading, a decline of 86% from the average daily volume of 17,444,900 shares. The stock had previously closed at $72.36.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Citigroup dropped their target price on shares of Wells Fargo & Company from $82.00 to $78.00 and set a “neutral” rating for the company in a research report on Monday, March 24th. TD Cowen began coverage on shares of Wells Fargo & Company in a report on Thursday, May 15th. They issued a “hold” rating and a $83.00 price objective for the company. Morgan Stanley upped their target price on Wells Fargo & Company from $77.00 to $87.00 and gave the stock an “overweight” rating in a report on Wednesday, June 4th. Evercore ISI raised their target price on Wells Fargo & Company from $72.00 to $88.00 and gave the company an “outperform” rating in a research note on Wednesday, June 4th. Finally, Bank of America upped their price target on Wells Fargo & Company from $83.00 to $90.00 and gave the stock a “buy” rating in a research note on Wednesday, June 4th. Seven research analysts have rated the stock with a hold rating, eleven have issued a buy rating and two have given a strong buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $77.68.

Wells Fargo & Company Price Performance

The firm has a market capitalization of $238.12 billion, a P/E ratio of 13.60, a PEG ratio of 1.18 and a beta of 1.16. The firm has a 50-day moving average of $71.42 and a 200-day moving average of $72.87. The company has a debt-to-equity ratio of 1.07, a quick ratio of 0.85 and a current ratio of 0.86.

Wells Fargo & Company (NYSE:WFC) last released its quarterly earnings data on Friday, April 11th. The financial services provider reported $1.39 EPS for the quarter, beating the consensus estimate of $1.23 by $0.16. Wells Fargo & Company had a return on equity of 12.38% and a net margin of 15.73%. The company had revenue of $20.15 billion for the quarter, compared to analysts’ expectations of $20.82 billion. During the same period last year, the firm posted $1.20 earnings per share. Wells Fargo & Company’s revenue was down 3.4% compared to the same quarter last year. As a group, analysts predict that Wells Fargo & Company will post 5.89 EPS for the current year.

Wells Fargo & Company Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Sunday, June 1st. Investors of record on Friday, May 9th were issued a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 2.19%. The ex-dividend date was Friday, May 9th. Wells Fargo & Company’s dividend payout ratio is currently 28.73%.

Wells Fargo & Company declared that its Board of Directors has initiated a stock repurchase program on Tuesday, April 29th that permits the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to repurchase up to 17.2% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Wells Fargo & Company

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Rialto Wealth Management LLC bought a new stake in Wells Fargo & Company during the 4th quarter worth approximately $26,000. CBIZ Investment Advisory Services LLC raised its stake in Wells Fargo & Company by 585.5% during the first quarter. CBIZ Investment Advisory Services LLC now owns 377 shares of the financial services provider’s stock valued at $27,000 after purchasing an additional 322 shares in the last quarter. Investment Counsel Co. of Nevada purchased a new position in Wells Fargo & Company in the fourth quarter worth about $28,000. BNP Paribas bought a new position in shares of Wells Fargo & Company during the 4th quarter valued at approximately $28,000. Finally, Motco raised its stake in shares of Wells Fargo & Company by 397.6% in the first quarter. Motco now owns 408 shares of the financial services provider’s stock valued at $29,000 after acquiring an additional 326 shares during the period. Hedge funds and other institutional investors own 75.90% of the company’s stock.

About Wells Fargo & Company

Wells Fargo & Co is a diversified and community-based financial services company, which engages in the provision of banking, insurance, investments, mortgage, and consumer and commercial finance products and services. It operates through the following segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management.