Wells Fargo & Company (NYSE:WFC) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Wells Fargo received a “Moderate Buy” consensus rating from 26 brokerages, with 14 buys, 10 holds, and two strong buys. The average 12-month price target is $98.61, compared with a share price of $86.63.
• The bank exceeded quarterly expectations, reporting $1.96 in EPS versus the $1.73 consensus estimate and $22.62 billion in revenue versus $21.86 billion expected. Revenue increased 8.6% year over year.
• Wells Fargo raised its quarterly dividend to $0.50 per share, implying a $2.00 annualized payout and a 2.3% yield; institutional investors own approximately 75.9% of the stock.

Shares of Wells Fargo & Company (NYSE:WFC) have been given a consensus recommendation of "Moderate Buy" by the twenty-six brokerages that are covering the firm, MarketBeat.com reports. Ten investment analysts have rated the stock with a hold recommendation, fourteen have assigned a buy recommendation and two have given a strong buy recommendation to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $98.6053.

Several research analysts have commented on the stock. UBS Group decreased their target price on shares of Wells Fargo & Company from $105.00 to $104.00 and set a "buy" rating for the company in a report on Tuesday, July 7th. Wall Street Zen upgraded shares of Wells Fargo & Company from a "sell" rating to a "hold" rating in a report on Sunday, June 14th. Robert W. Baird upped their price target on shares of Wells Fargo & Company from $85.00 to $92.00 and gave the company a "neutral" rating in a research report on Wednesday, July 15th. Raymond James Financial reaffirmed a "market perform" rating on shares of Wells Fargo & Company in a research note on Tuesday, July 14th. Finally, Keefe, Bruyette & Woods lowered their price objective on shares of Wells Fargo & Company from $98.00 to $94.00 and set a "market perform" rating on the stock in a research report on Wednesday, July 15th.

Institutional Investors Weigh In On Wells Fargo & Company

Several hedge funds have recently bought and sold shares of the business. Norges Bank purchased a new stake in shares of Wells Fargo & Company in the fourth quarter worth approximately $4,512,563,000. Capital Research Global Investors grew its position in Wells Fargo & Company by 4.9% during 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 purchasing an additional 1,760,484 shares in the last quarter. Legal & General Group Plc increased its stake in Wells Fargo & Company by 0.9% in the 4th 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 period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Wells Fargo & Company by 13.0% in the 4th 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 worth $1,922,257,000 after buying an additional 2,369,260 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Wells Fargo & Company during the 2nd quarter valued at $1,364,923,000. 75.90% of the stock is owned by hedge funds and other institutional investors.

Wells Fargo & Company Price Performance

NYSE WFC opened at $86.63 on Tuesday. 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 stock has a market capitalization of $261.97 billion, a P/E ratio of 12.59, a P/E/G ratio of 0.94 and a beta of 0.92. The business's fifty day moving average is $87.24 and its two-hundred day moving average is $82.85. Wells Fargo & Company has a 1 year low of $72.78 and a 1 year high of $97.76.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last announced its earnings results on Tuesday, July 14th. The financial services provider reported $1.96 earnings per share (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 analyst estimates of $21.86 billion. During the same period in the previous year, the firm earned $1.60 earnings per share. Wells Fargo & Company's revenue for the quarter was up 8.6% compared to the same quarter last year. On average, research analysts forecast that Wells Fargo & Company will post 7.25 earnings per share for the current fiscal year.

Wells Fargo & Company Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Friday, August 7th were issued a dividend of $0.50 per share. This is a positive change from Wells Fargo & Company's previous quarterly dividend of $0.45. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date was Friday, August 7th. Wells Fargo & Company's dividend payout ratio is presently 29.07%.

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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