Wells Fargo & Company (NYSE:WFC) Stock Bought Sen. Mitch McConnell

Key Points

• Sen. Mitch McConnell purchased between $15,001 and $50,000 of Wells Fargo shares on September 1, according to a filing disclosed September 21.
• Wells Fargo reported quarterly EPS of $1.96, beating estimates of $1.73, while revenue rose 8.6% year over year to $22.62 billion. The bank also increased its quarterly dividend from $0.45 to $0.50 per share, for a 2.4% yield.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $99.08, while institutional investors and hedge funds own approximately 75.9% of the stock.

Senator Mitch McConnell (Republican-Kentucky) recently bought shares of Wells Fargo & Company NYSE: WFC. In a filing disclosed on September 21st, the Senator disclosed that they had bought between $15,001 and $50,000 in Wells Fargo & Company stock on September 1st.

Wells Fargo & Company Stock Down 1.5%

Wells Fargo & Company stock opened at $81.89 on Thursday. Wells Fargo & Company has a fifty-two week low of $72.78 and a fifty-two week high of $97.76. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.90 and a current ratio of 0.90. The firm has a 50 day moving average price of $87.08 and a 200 day moving average price of $82.85. The company has a market capitalization of $247.64 billion, a PE ratio of 11.90, a price-to-earnings-growth ratio of 0.90 and a beta of 0.92.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last released its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.96 EPS for the quarter, topping analysts' consensus estimates of $1.73 by $0.23. Wells Fargo & Company had a return on equity of 13.85% and a net margin of 17.55%.The company had revenue of $22.62 billion for the quarter, compared to analysts' expectations of $21.86 billion. During the same period in the prior year, the firm earned $1.60 earnings per share. The firm's revenue was up 8.6% compared to the same quarter last year. Research analysts expect that Wells Fargo & Company will post 7.25 earnings per share for the current year.

Wells Fargo & Company Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Friday, August 7th were given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend was Friday, August 7th. This is an increase from Wells Fargo & Company's previous quarterly dividend of $0.45. Wells Fargo & Company's dividend payout ratio is 29.07%.

Hedge Funds Weigh In On Wells Fargo & Company

Institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank acquired a new stake in shares of Wells Fargo & Company in the 4th quarter valued at $4,512,563,000. Capital Research Global Investors increased its holdings in Wells Fargo & Company by 4.9% in the fourth quarter. Capital Research Global Investors now owns 37,421,387 shares of the financial services provider's stock valued at $3,487,687,000 after buying an additional 1,760,484 shares during the last quarter. Legal & General Group Plc increased its holdings in Wells Fargo & Company by 0.9% in the fourth quarter. Legal & General Group Plc now owns 21,197,423 shares of the financial services provider's stock valued at $1,975,600,000 after buying an additional 188,186 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Wells Fargo & Company by 13.0% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 20,625,070 shares of the financial services provider's stock valued at $1,922,257,000 after buying an additional 2,369,260 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in Wells Fargo & Company in the second quarter valued at $1,364,923,000. 75.90% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts recently commented on WFC shares. Weiss Ratings restated a "buy (b)" rating on shares of Wells Fargo & Company in a report on Friday, July 17th. Raymond James Financial reiterated a "market perform" rating on shares of Wells Fargo & Company in a research note on Tuesday, July 14th. Robert W. Baird increased their price target on shares of Wells Fargo & Company from $85.00 to $92.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 15th. UBS Group lowered their price objective on shares of Wells Fargo & Company from $105.00 to $104.00 and set a "buy" rating for the company in a research note on Tuesday, July 7th. Finally, Bank of America lifted their price objective on shares of Wells Fargo & Company from $95.00 to $102.00 and gave the company a "buy" rating in a report on Tuesday, July 7th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $99.08.

More Wells Fargo & Company News

Here are the key news stories impacting Wells Fargo & Company this week:

• Positive Sentiment: Higher rates may support net interest income. Analysts said the Federal Reserve’s latest rate hike could help Wells Fargo expand the spread between lending yields and deposit costs. However, the benefit may be limited as the bank pays more to retain deposits. Fed Rate Hike: What it Means for Wells Fargo's NII Outlook
• Positive Sentiment: Internal succession should reduce leadership uncertainty. Wells Fargo named current Chief Operating Officer Scott E. Powell as its next chief risk officer. His appointment follows Chief Risk Officer Derek Flowers’ planned retirement in January and suggests a relatively smooth transition for a critical risk-management role. Wells Fargo Names Scott Powell New Chief Risk Officer
• Neutral Sentiment: Flowers’ retirement is being closely monitored. Derek Flowers will retire after nearly three decades at Wells Fargo. Although the planned departure could raise questions about continuity, the promotion of Powell may ease concerns because the successor is already familiar with the bank’s operations. Wells Fargo's chief risk officer Derek Flowers to retire
• Negative Sentiment: AI-related disruption fears pressured bank stocks. Reports that Meta’s Muse AI agent could automate or reshape financial services triggered a broad decline among Wells Fargo, JPMorgan and Bank of America. The concern is longer-term: AI could intensify competition and reduce the value of traditional banking services, even though no immediate earnings impact was identified. JPMorgan, Wells Fargo and Bank of America Slide as Meta’s Muse Sparks AI Fears

About Senator McConnell

Mitch McConnell (Republican Party) is a member of the U.S. Senate from Kentucky. He assumed office on January 3, 1985. His current term ends on January 3, 2027. McConnell (Republican Party) ran for re-election to the U.S. Senate to represent Kentucky. He won in the general election on November 3, 2020. McConnell is the Senate minority leader in the 118th Congress. He became the minority leader when the Democratic Party gained a majority in the Senate in January 2021.McConnell previously served as Senate majority leader from 2015 to 2021. He was unanimously elected as majority leader by Republicans following the 2014 elections. Before that, he served as Senate minority leader from 2007 to 2015. As Senate majority leader, McConnell set records for the number of judicial nominees confirmed during the first two years of a presidency. As of July 2019, the Senate had confirmed two Supreme Court justices, 41 circuit court appeals judges, and 80 district court judges during President Donald Trump's presidency. “To put that in context, that’s about one in five of the Courts of Appeals judges nationwide have now been appointed by this president and confirmed by this Senate in two and a half years. And I want you to know that my view is, there will be no vacancies left behind. None,” McConnell said in June 2019. McConnell previously worked as the Deputy U.S. Attorney for Legislative Affairs from 1974 to 1975 and as a judge-executive of Jefferson County, KY, from 1979 to 1985.

Wells Fargo & Company Company Profile

Wells Fargo & Company is a diversified financial services company that provides banking, lending, investment, and wealth management services to consumers, businesses, and institutions. Its offerings include checking and savings accounts, credit cards, mortgages, auto loans, personal lending, commercial financing, and treasury management services.

The company operates through businesses that include consumer and small-business banking, commercial banking, corporate and investment banking, and wealth and investment management.

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