Dimensional Fund Advisors LP Reduces Stock Holdings in Wells Fargo & Company $WFC

Key Points

• Dimensional Fund Advisors LP cut its Wells Fargo stake by 7.3% in the first quarter, selling about 1.45 million shares. It still held 18.47 million shares worth roughly $1.47 billion, or about 0.60% of the company.
• Wall Street remains broadly bullish on WFC, with analysts assigning an average “Moderate Buy” rating and a $98.50 price target. Recent updates included upgrades from HSBC and continued overweight/buy calls from several firms, though some targets were trimmed.
• Wells Fargo has recently posted strong operating momentum, including a better-than-expected Q2 earnings beat driven by fee income, investment banking, and net interest income. The bank also pays a quarterly dividend of $0.45, implying a 2.1% yield.

Dimensional Fund Advisors LP reduced its holdings in shares of Wells Fargo & Company (NYSE:WFC - Free Report) by 7.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 18,474,225 shares of the financial services provider's stock after selling 1,449,872 shares during the period. Dimensional Fund Advisors LP owned approximately 0.60% of Wells Fargo & Company worth $1,470,461,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Private Wealth Group LLC raised its position in shares of Wells Fargo & Company by 2.5% in the 4th quarter. Private Wealth Group LLC now owns 4,514 shares of the financial services provider's stock valued at $421,000 after purchasing an additional 108 shares during the last quarter. Nixon Peabody Trust Co. boosted its stake in Wells Fargo & Company by 3.6% in the 4th quarter. Nixon Peabody Trust Co. now owns 3,351 shares of the financial services provider's stock worth $312,000 after purchasing an additional 115 shares in the last quarter. Simmons Bank grew its position in Wells Fargo & Company by 1.9% during the 4th quarter. Simmons Bank now owns 6,359 shares of the financial services provider's stock worth $593,000 after purchasing an additional 116 shares during the last quarter. Moss Adams Wealth Advisors LLC grew its position in Wells Fargo & Company by 1.0% during the 4th quarter. Moss Adams Wealth Advisors LLC now owns 12,048 shares of the financial services provider's stock worth $1,123,000 after purchasing an additional 117 shares during the last quarter. Finally, Wood Tarver Financial Group LLC increased its stake in Wells Fargo & Company by 1.6% during the 4th quarter. Wood Tarver Financial Group LLC now owns 7,754 shares of the financial services provider's stock valued at $722,000 after purchasing an additional 120 shares in the last quarter. 75.90% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research firms have issued reports on WFC. Piper Sandler reaffirmed an "overweight" rating and issued a $94.00 price target (down from $100.00) on shares of Wells Fargo & Company in a report on Wednesday, April 15th. HSBC raised shares of Wells Fargo & Company from a "hold" rating to a "buy" rating and set a $94.00 price objective on the stock in a report on Wednesday, April 1st. UBS Group reduced their target price on Wells Fargo & Company from $105.00 to $104.00 and set a "buy" rating for the company in a research note on Tuesday, July 7th. Morgan Stanley raised their price objective on Wells Fargo & Company from $97.00 to $102.00 and gave the stock an "equal weight" rating in a research note on Monday, June 29th. Finally, The Goldman Sachs Group dropped their target price on Wells Fargo & Company from $109.00 to $93.00 and set a "buy" rating on the stock in a research report on Monday, March 23rd. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, Wells Fargo & Company has an average rating of "Moderate Buy" and an average target price of $98.50.

Key Stories Impacting Wells Fargo & Company

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

• Positive Sentiment: Wells Fargo reported stronger-than-expected Q2 results, with adjusted EPS of $1.96 topping Wall Street’s $1.72 estimate, driven by higher fee income, investment banking activity and net interest income. Wells Fargo CEO Says America Is Still Spending Big—Even With Inflation Concerns
• Positive Sentiment: Wells Fargo was upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about its earnings outlook and adding another bullish signal for investors. Wells Fargo (WFC) Upgraded to Buy: Here's What You Should Know
• Positive Sentiment: Analysts remain constructive after the bank’s earnings beat, with industry commentary highlighting strong Q2 performance across major banks including Wells Fargo. Revving Up Returns: Big Banks Race Through the Rate Plateau (WFC)
• Neutral Sentiment: Wells Fargo also appeared in commentary noting that big bank earnings beat estimates, but some of the profit strength came from lower loan-loss reserves, which may be less repeatable going forward. Revving Up Returns: Big Banks Race Through the Rate Plateau (WFC)
• Neutral Sentiment: Wells Fargo’s housing-market index showed weaker homebuilder confidence in July, a modest macroeconomic headwind for the bank’s mortgage-related business. U.S. Homebuilder Confidence Unexpectedly Deteriorates In July

Wells Fargo & Company Trading Up 0.0%

NYSE WFC opened at $87.52 on Monday. Wells Fargo & Company has a 1 year low of $72.78 and a 1 year high of $97.76. The company has a debt-to-equity ratio of 1.09, a current ratio of 0.90 and a quick ratio of 0.90. The company has a market capitalization of $267.82 billion, a PE ratio of 12.72, a P/E/G ratio of 0.96 and a beta of 0.92. The company has a fifty day moving average of $81.44 and a 200 day moving average of $83.69.

Wells Fargo & Company Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Friday, May 8th were issued a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend was Friday, May 8th. Wells Fargo & Company's payout ratio is 26.16%.

Wells Fargo & 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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