Fifth Third Bancorp Acquires 22,845 Shares of WEX Inc. $WEX

Key Points

• Fifth Third Bancorp sharply increased its stake in WEX, buying 22,845 additional shares in the first quarter and lifting its holdings to 28,746 shares worth about $4.4 million.
• Insider activity was mixed: COO Robert Joseph Deshaies sold 2,000 shares under a pre-arranged trading plan, while Director James R. Groch bought 1,500 shares.
• WEX reported solid fundamentals and capital returns: it beat quarterly EPS and revenue estimates, raised guidance, and announced a $1 billion share buyback authorization. Analysts currently rate the stock a consensus “Hold” with a $172.30 price target.

Fifth Third Bancorp grew its holdings in shares of WEX Inc. (NYSE:WEX - Free Report) by 387.1% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 28,746 shares of the business services provider's stock after buying an additional 22,845 shares during the quarter. Fifth Third Bancorp owned 0.08% of WEX worth $4,399,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Goldman Sachs Group Inc. boosted its holdings in shares of WEX by 158.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 350,892 shares of the business services provider's stock worth $55,097,000 after purchasing an additional 215,036 shares during the period. Empowered Funds LLC purchased a new position in WEX during the first quarter worth $394,000. American Century Companies Inc. boosted its stake in WEX by 1.9% during the second quarter. American Century Companies Inc. now owns 3,205 shares of the business services provider's stock worth $471,000 after buying an additional 60 shares during the period. EverSource Wealth Advisors LLC increased its position in WEX by 4,837.5% during the second quarter. EverSource Wealth Advisors LLC now owns 395 shares of the business services provider's stock valued at $58,000 after acquiring an additional 387 shares during the last quarter. Finally, Gamco Investors INC. ET AL bought a new position in WEX during the second quarter valued at $271,000. Institutional investors own 97.47% of the company's stock.

Insider Activity

In other news, COO Robert Joseph Deshaies sold 2,000 shares of the business's stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $148.40, for a total value of $296,800.00. Following the completion of the sale, the chief operating officer owned 20,288 shares in the company, valued at approximately $3,010,739.20. The trade was a 8.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James R. Groch purchased 1,500 shares of the stock in a transaction dated Monday, May 18th. The stock was acquired at an average cost of $142.95 per share, with a total value of $214,425.00. Following the transaction, the director directly owned 17,957 shares in the company, valued at approximately $2,566,953.15. This trade represents a 9.11% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 1.40% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on WEX shares. Weiss Ratings upgraded shares of WEX from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 9th. Robert W. Baird raised their price objective on shares of WEX from $210.00 to $220.00 and gave the stock an "outperform" rating in a research note on Thursday, April 23rd. Morgan Stanley boosted their target price on WEX from $146.00 to $158.00 and gave the company an "equal weight" rating in a research report on Tuesday, April 21st. Loop Capital started coverage on WEX in a research note on Monday, April 27th. They set a "buy" rating and a $195.00 target price on the stock. Finally, Deutsche Bank Aktiengesellschaft reduced their price target on WEX from $180.00 to $160.00 and set a "hold" rating on the stock in a report on Friday, June 12th. Four equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat.com, WEX presently has an average rating of "Hold" and a consensus price target of $172.30.

WEX Price Performance

WEX opened at $164.90 on Friday. WEX Inc. has a 12-month low of $125.29 and a 12-month high of $186.85. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 2.83. The business's fifty day simple moving average is $143.56 and its 200-day simple moving average is $152.19. The company has a market capitalization of $5.72 billion, a price-to-earnings ratio of 18.51, a PEG ratio of 1.01 and a beta of 0.85.

WEX (NYSE:WEX - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The business services provider reported $4.15 earnings per share for the quarter, beating the consensus estimate 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 during the quarter, compared to the consensus estimate of $660.96 million. During the same period in the previous year, the company posted $3.51 earnings per share. The firm's quarterly revenue 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 research analysts anticipate that WEX Inc. will post 16.81 earnings per share for the current fiscal year.

WEX declared that its Board of Directors has initiated a share buyback plan on Thursday, May 14th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to repurchase up to 21.2% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's management believes its stock is undervalued.

WEX 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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