Andra AP fonden Has $28.44 Million Stock Position in Wells Fargo & Company $WFC

Key Points

• Andra AP fonden cut its Wells Fargo stake by 21.7% in the second quarter, selling 95,600 shares and retaining 344,100 shares valued at approximately $28.44 million. Institutional investors collectively own 75.9% of WFC.
• Wells Fargo reported stronger-than-expected quarterly results, with EPS of $1.96 versus the $1.73 consensus and revenue of $22.62 billion. The company also raised its quarterly dividend to $0.50 per share, equivalent to a 2.4% annual yield.
• WFC shares fell 3.7% to $83.38 amid broader pressure on bank stocks following the Fed’s rate decision. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $98.61, though concerns remain over deposit costs, credit quality and economic growth.

Andra AP fonden lessened its holdings in Wells Fargo & Company (NYSE:WFC - Free Report) by 21.7% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 344,100 shares of the financial services provider's stock after selling 95,600 shares during the quarter. Andra AP fonden's holdings in Wells Fargo & Company were worth $28,436,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Norges Bank acquired a new stake in Wells Fargo & Company during the 4th quarter worth about $4,512,563,000. Capital Research Global Investors grew 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 worth $3,487,687,000 after purchasing an additional 1,760,484 shares during the period. Legal & General Group Plc increased its stake 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 purchasing an additional 188,186 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased 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 purchasing an additional 2,369,260 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in shares of Wells Fargo & Company during the second quarter valued at about $1,364,923,000. Institutional investors and hedge funds own 75.90% of the company's stock.

Key Headlines Impacting Wells Fargo & Company

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

• Positive Sentiment: The Fed’s latest rate increase could support Wells Fargo’s NII by allowing the bank to earn more on loans and other interest-sensitive assets. However, the potential benefit is expected to be tempered by higher deposit costs as customers demand better yields. Fed Rate Hike: What it Means for Wells Fargo's NII Outlook
• Neutral Sentiment: Analysts continue to give WFC an average “Moderate Buy” recommendation, indicating generally constructive sentiment but not a strong consensus for immediate upside. Wells Fargo Given Average Recommendation of Moderate Buy
• Negative Sentiment: Bank stocks sold off after the rate decision despite the higher-rate benefit, suggesting investors are repricing the sector for possible pressure on economic growth, credit quality, deposit competition and the sustainability of the rally. Fed Rate Hike Fails to Lift Bank Stocks as Market Reprices the Rally
• Negative Sentiment: Wells Fargo also lowered its year-end S&P 500 target and warned of possible near-term market downside, reinforcing a more cautious risk backdrop that can weigh on financial stocks. Wells Fargo Cuts S&P 500 Target

Wells Fargo & Company Stock Down 3.7%

Shares of WFC stock traded down $3.16 on Tuesday, hitting $83.38. The stock had a trading volume of 8,511,415 shares, compared to its average volume of 16,086,873. Wells Fargo & Company has a 12-month low of $72.78 and a 12-month high of $97.76. The stock has a market cap of $252.14 billion, a price-to-earnings ratio of 12.13, a price-to-earnings-growth ratio of 0.94 and a beta of 0.92. The business has a 50 day moving average of $87.24 and a 200 day moving average of $82.85. The company has a debt-to-equity ratio of 1.09, a current ratio of 0.90 and a quick ratio of 0.90.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last issued its quarterly earnings data 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. The business had revenue of $22.62 billion during the quarter, compared to the consensus estimate of $21.86 billion. Wells Fargo & Company had a net margin of 17.55% and a return on equity of 13.85%. The firm's quarterly revenue was up 8.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.60 EPS. As a group, analysts expect that Wells Fargo & Company will post 7.25 EPS for the current year.

Wells Fargo & Company Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Friday, August 7th were issued a $0.50 dividend. This is a boost from Wells Fargo & Company's previous quarterly dividend of $0.45. This represents a $2.00 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Friday, August 7th. Wells Fargo & Company's dividend payout ratio is currently 29.07%.

Analysts Set New Price Targets

Several analysts have recently commented on the company. Weiss Ratings restated a "buy (b)" rating on shares of Wells Fargo & Company in a research note on Friday, July 17th. Bank of America boosted their price objective on Wells Fargo & Company from $95.00 to $102.00 and gave the company a "buy" rating in a report on Tuesday, July 7th. Keefe, Bruyette & Woods lowered their target price on 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. Morgan Stanley increased their target price on Wells Fargo & Company from $97.00 to $102.00 and gave the stock an "equal weight" rating in a report on Monday, June 29th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Wells Fargo & Company from $93.50 to $95.50 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, Wells Fargo & Company has a consensus rating of "Moderate Buy" and an average target price of $98.61.

Wells Fargo & 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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