Capital World Investors Raises Holdings in WEX Inc. $WEX

Key Points

• Capital World Investors increased its WEX stake by 56.9% in the fourth quarter, holding 95,813 shares worth about $14.3 million. Other institutional investors also added to positions, and hedge funds now own 97.47% of the stock.
• WEX received mixed analyst updates: some firms reiterated or initiated positive ratings, but the overall consensus remains Hold with a price target of $172.70. The current analyst view reflects a split between buy and hold recommendations.
• The company reported strong quarterly results, beating EPS and revenue estimates, and it announced a $1 billion share buyback program. WEX also gave FY 2026 and Q2 2026 guidance above recent results, signaling continued confidence in performance.

Capital World Investors raised its holdings in shares of WEX Inc. (NYSE:WEX - Free Report) by 56.9% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 95,813 shares of the business services provider's stock after purchasing an additional 34,730 shares during the period. Capital World Investors owned approximately 0.28% of WEX worth $14,274,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the business. Los Angeles Capital Management LLC purchased a new stake in WEX during the 4th quarter valued at $25,000. Havemeyer Place LP purchased a new stake in WEX during the 4th quarter valued at $434,000. Lifestyle Asset Management Inc. boosted its stake in WEX by 14.6% during the 4th quarter. Lifestyle Asset Management Inc. now owns 10,515 shares of the business services provider's stock valued at $1,567,000 after purchasing an additional 1,342 shares during the last quarter. Daiwa Securities Group Inc. boosted its stake in WEX by 4.3% during the 4th quarter. Daiwa Securities Group Inc. now owns 6,161 shares of the business services provider's stock valued at $918,000 after purchasing an additional 256 shares during the last quarter. Finally, State of Wyoming boosted its stake in WEX by 38.1% during the 4th quarter. State of Wyoming now owns 5,421 shares of the business services provider's stock valued at $808,000 after purchasing an additional 1,496 shares during the last quarter. 97.47% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Raymond James Financial restated a "market perform" rating on shares of WEX in a research note on Friday, March 6th. Wall Street Zen downgraded WEX from a "buy" rating to a "hold" rating in a research note on Sunday, May 24th. Morgan Stanley raised their price target on WEX from $146.00 to $158.00 and gave the stock an "equal weight" rating in a research note on Tuesday, April 21st. Robert W. Baird raised their price target on WEX from $210.00 to $220.00 and gave the stock an "outperform" rating in a research note on Thursday, April 23rd. Finally, Loop Capital assumed coverage on WEX in a research note on Monday, April 27th. They issued a "buy" rating and a $195.00 price target on the stock. Four equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $172.70.

Insider Buying and Selling

In other news, Director James R. Groch purchased 1,500 shares of the company's stock in a transaction on Monday, May 18th. The stock was acquired at an average cost of $142.95 per share, for a total transaction of $214,425.00. Following the completion of the transaction, the director directly owned 17,957 shares in the company, valued at $2,566,953.15. This trade represents a 9.11% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, COO Robert Joseph Deshaies sold 1,200 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $144.84, for a total transaction of $173,808.00. Following the completion of the transaction, the chief operating officer owned 22,288 shares of the company's stock, valued at approximately $3,228,193.92. The trade was a 5.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 9,019 shares of company stock valued at $1,446,996. Insiders own 1.40% of the company's stock.

WEX Stock Performance

WEX stock opened at $148.59 on Wednesday. The company has a market cap of $5.15 billion, a P/E ratio of 16.68, a price-to-earnings-growth ratio of 0.92 and a beta of 0.85. WEX Inc. has a 1 year low of $132.35 and a 1 year high of $186.85. The company has a debt-to-equity ratio of 2.83, a current ratio of 1.05 and a quick ratio of 1.05. The stock's fifty day moving average price is $152.42 and its 200-day moving average price is $153.69.

WEX (NYSE:WEX - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The business services provider reported $4.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.92 by $0.23. WEX had a return on equity of 42.66% and a net margin of 11.50%.The firm had revenue of $673.80 million for the quarter, compared to the consensus estimate of $660.96 million. During the same period last year, the business posted $3.51 EPS. The company's revenue for the quarter was up 5.8% on a year-over-year basis. WEX has set its FY 2026 guidance at 18.950-19.550 EPS and its Q2 2026 guidance at 4.930-5.130 EPS. On average, equities analysts forecast that WEX Inc. will post 16.49 earnings per share for the current year.

WEX declared that its board has authorized a share buyback program on Thursday, May 14th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the business services provider to repurchase up to 21.2% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's board of directors believes its stock is undervalued.

WEX Company Profile

WEX Inc is a global financial technology company specializing in business payment solutions for fleet, travel, and corporate payments. The company delivers software-driven platforms and card-based services that help businesses automate payment processes, manage expenses and improve operational efficiency across a range of industries, including transportation, healthcare and government.

Founded in 1983 as Wright Express in Portland, Maine, the company began by offering fuel card services to trucking fleets.

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