Capital International Investors Trims Stock Position in Wells Fargo & Company $WFC

Key Points

• Capital International Investors reduced its Wells Fargo stake by 28.1% in the fourth quarter, selling nearly 10 million shares and leaving it with about 25.6 million shares valued at roughly $2.38 billion.
• Analyst sentiment is still generally constructive, with Wells Fargo carrying a Moderate Buy consensus rating and a consensus target price of $97.53, even though a few firms trimmed targets or downgraded the stock.
• Wells Fargo reported $1.60 EPS for the latest quarter, beating estimates, and recently paid a $0.45 quarterly dividend, equal to an annualized yield of about 2.2%.

Capital International Investors cut its holdings in shares of Wells Fargo & Company (NYSE:WFC - Free Report) by 28.1% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 25,557,973 shares of the financial services provider's stock after selling 9,987,607 shares during the quarter. Capital International Investors owned about 0.81% of Wells Fargo & Company worth $2,382,263,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently added to or reduced their stakes in WFC. Godfrey Financial Associates Inc. acquired a new stake in Wells Fargo & Company during the fourth quarter worth about $25,000. Navalign LLC acquired a new stake in Wells Fargo & Company during the fourth quarter worth about $26,000. Redmont Wealth Advisors LLC acquired a new stake in Wells Fargo & Company during the third quarter worth about $27,000. Joseph Group Capital Management acquired a new stake in Wells Fargo & Company during the fourth quarter worth about $28,000. Finally, Core Wealth Advisors LLC acquired a new stake in Wells Fargo & Company during the fourth quarter worth about $29,000. 75.90% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have commented on the company. JPMorgan Chase & Co. dropped their price target on Wells Fargo & Company from $91.00 to $86.50 and set a "neutral" rating for the company in a research note on Thursday, April 30th. Wall Street Zen lowered Wells Fargo & Company from a "hold" rating to a "sell" rating in a research note on Saturday. Piper Sandler reiterated an "overweight" rating and issued a $94.00 target price (down from $100.00) on shares of Wells Fargo & Company in a research note on Wednesday, April 15th. Weiss Ratings reiterated a "buy (b)" rating on shares of Wells Fargo & Company in a research note on Monday, April 20th. Finally, Robert W. Baird upgraded Wells Fargo & Company from an "underperform" rating to a "neutral" rating and set a $85.00 target price for the company in a research note on Friday, February 13th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, Wells Fargo & Company currently has a consensus rating of "Moderate Buy" and a consensus target price of $97.53.

Wells Fargo & Company Trading Up 0.5%

NYSE:WFC opened at $82.06 on Friday. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.12. The business's 50 day moving average is $79.20 and its two-hundred day moving average is $84.70. Wells Fargo & Company has a 52 week low of $71.93 and a 52 week high of $97.76. The company has a market cap of $251.13 billion, a PE ratio of 12.66, a P/E/G ratio of 0.96 and a beta of 0.93.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last released its earnings results on Tuesday, April 14th. The financial services provider reported $1.60 EPS for the quarter, topping analysts' consensus estimates of $1.58 by $0.02. Wells Fargo & Company had a return on equity of 13.27% and a net margin of 17.26%.The company had revenue of $11.62 billion for the quarter, compared to the consensus estimate of $21.85 billion. During the same quarter last year, the business posted $1.39 EPS. Wells Fargo & Company's quarterly revenue was up 6.4% compared to the same quarter last year. On average, analysts predict that Wells Fargo & Company will post 6.84 EPS for the current year.

Wells Fargo & Company Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Friday, May 8th were issued a $0.45 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $1.80 annualized dividend and a dividend yield of 2.2%. Wells Fargo & Company's dividend payout ratio (DPR) is 27.78%.

Trending Headlines about Wells Fargo & Company

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

• Positive Sentiment: Analysts remain constructive on Wells Fargo after management offered a strong outlook, with coverage showing a majority Buy rating and implied upside to the shares. Street Bullish on Wells Fargo & Company (WFC) After CEO Offered Strong Outlook
• Positive Sentiment: Wells Fargo is also part of a planned shared tokenized deposit network led by The Clearing House, suggesting the bank is positioning itself for faster, blockchain-based payments and a new growth avenue. Big Banks Launch Tokenized Deposit Network to Fight Off Stablecoin Threat
• Neutral Sentiment: Coverage noting that Wells Fargo is a trending stock points to heightened investor attention, but it does not add new fundamentals by itself. Is Trending Stock Wells Fargo & Company (WFC) a Buy Now?
• Neutral Sentiment: Wells Fargo’s role in the tokenized-deposit network was reiterated in separate reports, reinforcing the strategic theme rather than signaling an immediate financial impact. Tokenized Deposits Set Up Banking’s Next Network Race

About Wells Fargo & Company

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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