AIA Group Ltd Acquires 7,396 Shares of Wells Fargo & Company (NYSE:WFC)

Key Points

• AIA Group Ltd has increased its stake in Wells Fargo & Company by 11.7%, owning 70,639 shares valued at approximately $5.07 million as of its latest SEC filing.
• The company announced a quarterly dividend increase to $0.45 per share, up from $0.40, and will also execute a $40 billion share buyback program, indicating confidence in its stock value.
• Analyst ratings for Wells Fargo show a consensus of "Moderate Buy"** with a target price of $80.39, reflecting varied opinions from multiple financial institutions.

AIA Group Ltd grew its stake in shares of Wells Fargo & Company (NYSE:WFC - Free Report) by 11.7% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 70,639 shares of the financial services provider's stock after acquiring an additional 7,396 shares during the period. AIA Group Ltd's holdings in Wells Fargo & Company were worth $5,071,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in the stock. Investment Counsel Co. of Nevada bought a new position in shares of Wells Fargo & Company in the fourth quarter worth $28,000. BNP Paribas bought a new position in shares of Wells Fargo & Company in the fourth quarter worth $28,000. Motco increased its holdings 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 worth $29,000 after purchasing an additional 326 shares during the period. Accent Capital Management LLC bought a new position in shares of Wells Fargo & Company in the first quarter worth $29,000. Finally, Parvin Asset Management LLC bought a new position in shares of Wells Fargo & Company in the fourth quarter worth $32,000. Hedge funds and other institutional investors own 75.90% of the company's stock.

Wells Fargo & Company Trading Down 1.9%

Shares of NYSE:WFC traded down $1.52 on Wednesday, reaching $77.96. 14,409,843 shares of the company traded hands, compared to its average volume of 16,622,731. The business's 50-day simple moving average is $79.11 and its 200 day simple moving average is $74.99. Wells Fargo & Company has a 52 week low of $50.22 and a 52 week high of $84.83. The stock has a market capitalization of $249.74 billion, a P/E ratio of 13.35, a price-to-earnings-growth ratio of 1.24 and a beta of 1.20. The company has a current ratio of 0.84, a quick ratio of 0.83 and a debt-to-equity ratio of 1.06.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last posted its earnings results on Tuesday, July 15th. The financial services provider reported $1.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.41 by $0.13. The company had revenue of $20.82 billion for the quarter, compared to analysts' expectations of $20.83 billion. Wells Fargo & Company had a return on equity of 12.29% and a net margin of 16.82%. Wells Fargo & Company's quarterly revenue was up .6% on a year-over-year basis. During the same period last year, the firm earned $1.33 earnings per share. As a group, equities analysts anticipate that Wells Fargo & Company will post 5.89 EPS for the current fiscal year.

Wells Fargo & Company Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 1st. Investors of record on Friday, August 8th will be paid a $0.45 dividend. The ex-dividend date of this dividend is Friday, August 8th. This is a boost from Wells Fargo & Company's previous quarterly dividend of $0.40. This represents a $1.80 annualized dividend and a dividend yield of 2.3%. Wells Fargo & Company's payout ratio is 30.82%.

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

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on WFC shares. Piper Sandler reaffirmed an "overweight" rating on shares of Wells Fargo & Company in a report on Tuesday, July 8th. The Goldman Sachs Group lowered their price target on Wells Fargo & Company from $92.00 to $91.00 and set a "buy" rating on the stock in a research report on Wednesday, July 16th. Phillip Securities downgraded Wells Fargo & Company from a "strong-buy" rating to a "moderate buy" rating in a research report on Thursday, July 17th. Bank of America raised their price target on Wells Fargo & Company from $83.00 to $90.00 and gave the company a "buy" rating in a research report on Wednesday, June 4th. Finally, Evercore ISI restated an "outperform" rating on shares of Wells Fargo & Company in a research report on Tuesday, July 8th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and eleven have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $80.39.

Wells Fargo & Company Profile

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.