Commerce Bank Reduces Stake in Wells Fargo & Company (NYSE:WFC)

Key Points

• Commerce Bank has reduced its stake in Wells Fargo & Company by 2.1%, now owning 200,850 shares worth $14.4 million following the sale of 4,218 shares during the first quarter.
• The company announced an increase in its quarterly dividend from $0.40 to $0.45 per share, effective September 1st, and initiated a $40 billion share buyback plan, indicating management's belief that the stock is undervalued.
• A number of analysts have upgraded Wells Fargo's ratings, with Bank of America raising its target price from $83 to $90, and the stock currently holds an average rating of "Moderate Buy" with a consensus price target of $80.39.

Commerce Bank reduced its position in Wells Fargo & Company (NYSE:WFC) by 2.1% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 200,850 shares of the financial services provider's stock after selling 4,218 shares during the period. Commerce Bank's holdings in Wells Fargo & Company were worth $14,419,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Shakespeare Wealth Management LLC boosted its stake in shares of Wells Fargo & Company by 0.9% in the 4th quarter. Shakespeare Wealth Management LLC now owns 13,839 shares of the financial services provider's stock worth $972,000 after buying an additional 130 shares during the last quarter. Safeguard Investment Advisory Group LLC boosted its stake in shares of Wells Fargo & Company by 2.4% in the 4th quarter. Safeguard Investment Advisory Group LLC now owns 5,839 shares of the financial services provider's stock worth $410,000 after buying an additional 137 shares during the last quarter. Summit Wealth & Retirement Planning Inc. boosted its stake in shares of Wells Fargo & Company by 4.3% in the 1st quarter. Summit Wealth & Retirement Planning Inc. now owns 3,362 shares of the financial services provider's stock worth $241,000 after buying an additional 139 shares during the last quarter. Nwam LLC boosted its stake in shares of Wells Fargo & Company by 1.6% in the 1st quarter. Nwam LLC now owns 8,806 shares of the financial services provider's stock worth $632,000 after buying an additional 142 shares during the last quarter. Finally, Jaffetilchin Investment Partners LLC boosted its stake in shares of Wells Fargo & Company by 0.6% in the 4th quarter. Jaffetilchin Investment Partners LLC now owns 22,501 shares of the financial services provider's stock worth $1,580,000 after buying an additional 144 shares during the last quarter. 75.90% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms have recently issued reports on WFC. Dbs Bank upgraded Wells Fargo & Company from a "hold" rating to a "moderate buy" rating in a research note on Thursday, July 17th. Bank of America raised their target price on Wells Fargo & Company from $83.00 to $90.00 and gave the stock a "buy" rating in a report on Wednesday, June 4th. Piper Sandler reaffirmed an "overweight" rating on shares of Wells Fargo & Company in a report on Tuesday, July 8th. TD Cowen initiated coverage on Wells Fargo & Company in a report on Thursday, May 15th. They issued a "hold" rating and a $83.00 target price on the stock. Finally, Morgan Stanley raised their target price on Wells Fargo & Company from $77.00 to $87.00 and gave the stock an "overweight" rating in a report on Wednesday, June 4th. One analyst has rated the stock with a sell rating, eight have issued a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat, Wells Fargo & Company currently has an average rating of "Moderate Buy" and a consensus price target of $80.39.

Wells Fargo & Company Price Performance

NYSE:WFC opened at $77.80 on Friday. The stock has a market cap of $253.18 billion, a PE ratio of 13.32, a P/E/G ratio of 1.25 and a beta of 1.20. The business's 50-day simple moving average is $78.56 and its two-hundred day simple moving average is $74.94. The company has a quick ratio of 0.83, a current ratio of 0.84 and a debt-to-equity ratio of 1.06. Wells Fargo & Company has a 52 week low of $50.15 and a 52 week high of $84.83.

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

Wells Fargo & Company Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 1st. Stockholders of record on Friday, August 8th will be given a dividend of $0.45 per share. The ex-dividend date is Friday, August 8th. This is a positive change from Wells Fargo & Company's previous quarterly dividend of $0.40. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.3%. Wells Fargo & Company's dividend payout ratio (DPR) is 27.40%.

Wells Fargo & Company declared that its Board of Directors has authorized a share buyback plan on Tuesday, April 29th that permits the company to buyback $40.00 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 17.2% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Wells Fargo & Company 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.

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