BTC Capital Management Inc. Decreases Stake in Wells Fargo & Company $WFC

Key Points

• BTC Capital Management reduced its Wells Fargo stake by 16.1% in the second quarter, selling 24,639 shares and retaining 128,450 shares valued at approximately $10.6 million. Institutional investors collectively own 75.9% of WFC.
• Wells Fargo exceeded quarterly expectations, reporting $1.96 in EPS versus the $1.73 consensus and $22.62 billion in revenue, up 8.6% year over year.
• The bank raised its quarterly dividend to $0.50 per share, or $2.00 annually, while analysts maintain a “Moderate Buy” consensus with an average price target of $98.61.

BTC Capital Management Inc. cut its stake in shares of Wells Fargo & Company (NYSE:WFC - Free Report) by 16.1% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 128,450 shares of the financial services provider's stock after selling 24,639 shares during the quarter. BTC Capital Management Inc.'s holdings in Wells Fargo & Company were worth $10,615,000 at the end of the most recent quarter.

Other hedge funds have also recently bought and sold shares of the company. Godfrey Financial Associates Inc. acquired a new position in Wells Fargo & Company during the fourth quarter worth approximately $25,000. Miller Capital Partners Inc. acquired a new stake in Wells Fargo & Company during the 4th quarter valued at $25,000. Navalign LLC purchased a new position in shares of Wells Fargo & Company during the 4th quarter valued at approximately $26,000. Joseph Group Capital Management acquired a new position in Wells Fargo & Company during the 4th quarter worth $28,000. Finally, Phillip James Consulting Co. acquired a new position in shares of Wells Fargo & Company in the 1st quarter worth approximately $28,000. Institutional investors and hedge funds own 75.90% of the company's stock.

Wells Fargo & Company Price Performance

Shares of WFC opened at $88.74 on Friday. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.09. Wells Fargo & Company has a 1 year low of $72.78 and a 1 year high of $97.76. The stock's 50-day moving average price is $85.73 and its two-hundred day moving average price is $83.10. The stock has a market cap of $268.34 billion, a P/E ratio of 12.90, a price-to-earnings-growth ratio of 0.96 and a beta of 0.92.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last posted 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. Wells Fargo & Company had a return on equity of 13.85% and a net margin of 17.55%.The business had revenue of $22.62 billion during the quarter, compared to the consensus estimate of $21.86 billion. During the same period last year, the company earned $1.60 earnings per share. Wells Fargo & Company's quarterly revenue was up 8.6% on a year-over-year basis. On average, equities analysts predict that Wells Fargo & Company will post 7.26 earnings per share for the current year.

Wells Fargo & Company Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Friday, August 7th will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 2.3%. This is an increase from Wells Fargo & Company's previous quarterly dividend of $0.45. The ex-dividend date is Friday, August 7th. Wells Fargo & Company's dividend payout ratio is presently 29.07%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. JPMorgan Chase & Co. lifted their price target on Wells Fargo & Company from $93.50 to $95.50 and gave the company a "neutral" rating in a report on Wednesday, July 29th. Raymond James Financial reissued a "market perform" rating on shares of Wells Fargo & Company in a research report on Tuesday, July 14th. Truist Financial boosted their price target on Wells Fargo & Company from $90.00 to $94.00 and gave the company a "buy" rating in a research note on Friday, June 26th. Phillip Securities upgraded Wells Fargo & Company from a "moderate buy" rating to a "strong-buy" rating in a report on Thursday, May 7th. Finally, Wall Street Zen raised Wells Fargo & Company from a "sell" rating to a "hold" rating in a research report on Sunday, June 14th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat, Wells Fargo & Company has a consensus rating of "Moderate Buy" and a consensus target price of $98.61.

Wells Fargo & Company News Summary

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

• Positive Sentiment: Wells Fargo declared quarterly cash dividends on six series of preferred stock. The announcement provides clarity for income-focused investors and signals that the bank continues to support its preferred-capital structure. Wells Fargo & Company Declares Cash Dividends on Preferred Stock
• Positive Sentiment: Recent analysis suggests WFC could be about 10% undervalued despite strong gains over the past three months, supporting the view that valuation may still leave room for additional appreciation. Wells Fargo Could Be 10% Undervalued After Preferred Dividend Declaration
• Positive Sentiment: Investors have been rotating from weaker-performing artificial-intelligence stocks into financials, creating a favorable sector backdrop for Wells Fargo and other banks. Risk-On Momentum in Bank Stocks Echoes Aftermath of Dot-Com Bust
• Positive Sentiment: Wells Fargo’s latest earnings exceeded expectations, with $1.96 in earnings per share and $22.62 billion in revenue, while revenue grew 8.6% year over year. Analysts continue to focus on potential net-interest-income growth, asset-cap removal and increased capital returns. WFC Stock Gains 20.5% in 3 Months: Buy, Hold or Sell the Stock Now?
• Neutral Sentiment: The bank is expanding its post-asset-cap strategy through tokenized deposits for corporate clients and new long-term debt and depositary-share offerings. The initiatives could improve payment capabilities and investment capacity, but their financial impact remains uncertain. Is Wells Fargo’s Tokenized Deposit Push Reshaping Its Post-Cap Investment Story?
• Negative Sentiment: After a roughly 20% three-month advance, valuation and profit-taking risks could limit near-term upside, making investors more sensitive to execution on growth and regulatory milestones. Why Is Wells Fargo Up Since Last Earnings Report?

Wells Fargo & Company Company Profile

Wells Fargo & Company is a diversified, U.S.-based financial services company headquartered in San Francisco, California. Founded in 1852 by Henry Wells and William G. Fargo, the firm has evolved from its origins in express delivery and pioneer-era banking into one of the largest full-service banks in the United States. The company provides a broad range of financial products and services to individual, small business, commercial, and institutional clients. Charles W. Scharf serves as chief executive officer.

Wells Fargo operates across several core business segments, including consumer banking and lending, commercial banking, corporate and investment banking, and wealth and investment management.

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