Diversified Management Inc. Trims Stake in Wells Fargo & Company $WFC

Key Points

• Diversified Management Inc. cut its Wells Fargo stake by 70.4% in the second quarter, selling 12,521 shares and retaining 5,255 shares valued at approximately $434,000. Institutional investors collectively own 75.9% of WFC shares.
• Wells Fargo reported quarterly EPS of $1.96, beating estimates of $1.73, while revenue rose 8.6% year over year to $22.62 billion. The company also increased its quarterly dividend from $0.45 to $0.50 per share, implying a 2.3% yield.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $98.61, compared with WFC’s reported share price of $87.42.

Diversified Management Inc. lowered its position in Wells Fargo & Company (NYSE:WFC - Free Report) by 70.4% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 5,255 shares of the financial services provider's stock after selling 12,521 shares during the period. Diversified Management Inc.'s holdings in Wells Fargo & Company were worth $434,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also modified their holdings of the company. Brighton Jones LLC raised its holdings in shares of Wells Fargo & Company by 62.3% in the fourth quarter. Brighton Jones LLC now owns 66,233 shares of the financial services provider's stock worth $4,652,000 after buying an additional 25,436 shares during the period. Jump Financial LLC boosted its holdings in Wells Fargo & Company by 12.9% during the 2nd quarter. Jump Financial LLC now owns 22,904 shares of the financial services provider's stock valued at $1,835,000 after acquiring an additional 2,615 shares during the period. Main Street Financial Solutions LLC boosted its holdings in Wells Fargo & Company by 111.0% during the 2nd quarter. Main Street Financial Solutions LLC now owns 14,008 shares of the financial services provider's stock valued at $1,122,000 after acquiring an additional 7,368 shares during the period. Vivaldi Capital Management LP grew its position in Wells Fargo & Company by 5.4% in the 2nd quarter. Vivaldi Capital Management LP now owns 3,229 shares of the financial services provider's stock valued at $259,000 after acquiring an additional 165 shares during the last quarter. Finally, Diversify Advisory Services LLC grew its position in Wells Fargo & Company by 51.2% in the 2nd quarter. Diversify Advisory Services LLC now owns 25,718 shares of the financial services provider's stock valued at $2,044,000 after acquiring an additional 8,714 shares during the last quarter. Hedge funds and other institutional investors own 75.90% of the company's stock.

Wells Fargo & Company Price Performance

WFC opened at $87.42 on Wednesday. Wells Fargo & Company has a 12-month low of $72.78 and a 12-month high of $97.76. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.09. The business's fifty day simple moving average is $85.26 and its 200-day simple moving average is $83.04. The company has a market capitalization of $264.35 billion, a price-to-earnings ratio of 12.71, a PEG ratio of 0.95 and a beta of 0.92.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last announced its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.96 EPS for the quarter, beating the consensus estimate of $1.73 by $0.23. The firm had revenue of $22.62 billion for the quarter, compared to analyst estimates of $21.86 billion. Wells Fargo & Company had a return on equity of 13.85% and a net margin of 17.55%.The business's revenue for the quarter was up 8.6% on a year-over-year basis. During the same quarter last year, the firm posted $1.60 earnings per share. On average, equities research analysts anticipate that Wells Fargo & Company will post 7.26 earnings per share for the current fiscal year.

Wells Fargo & Company Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 7th will be issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 2.3%. The ex-dividend date is Friday, August 7th. This is a positive change from Wells Fargo & Company's previous quarterly dividend of $0.45. Wells Fargo & Company's dividend payout ratio (DPR) is currently 29.07%.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on WFC shares. Keefe, Bruyette & Woods decreased their target price on Wells Fargo & Company from $98.00 to $94.00 and set a "market perform" rating for the company in a research report on Wednesday, July 15th. UBS Group cut their price target on shares of Wells Fargo & Company from $105.00 to $104.00 and set a "buy" rating on the stock in a report on Tuesday, July 7th. 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 research note on Wednesday, April 15th. Morgan Stanley lifted their price objective on shares of Wells Fargo & Company from $97.00 to $102.00 and gave the company an "equal weight" rating in a report on Monday, June 29th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Wells Fargo & Company from $93.50 to $95.50 and gave the company a "neutral" rating in a research report on Wednesday, July 29th. Two investment 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's stock. Based on data from MarketBeat, Wells Fargo & Company presently has a consensus rating of "Moderate Buy" and a consensus price target of $98.61.

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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