Gabelli Funds LLC Cuts Stock Position in Wells Fargo & Company $WFC

Key Points

• Gabelli Funds LLC reduced its Wells Fargo stake by 13.4% in the fourth quarter, selling 85,198 shares and leaving it with 549,396 shares worth about $51.2 million.
• Wells Fargo reported quarterly EPS of $1.60, slightly ahead of analyst expectations, while revenue rose 6.4% year over year to $11.62 billion. The company also maintained solid profitability, with a 17.26% net margin and 13.27% return on equity.
• The bank declared a quarterly dividend of $0.45 per share, payable June 1, for an annualized yield of 2.5%; meanwhile, several analysts remain constructive overall, though JPMorgan recently kept a Hold rating and trimmed its price target to $86.50.

Gabelli Funds LLC cut its stake in Wells Fargo & Company (NYSE:WFC - Free Report) by 13.4% in the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 549,396 shares of the financial services provider's stock after selling 85,198 shares during the period. Gabelli Funds LLC's holdings in Wells Fargo & Company were worth $51,204,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors also recently bought and sold shares of the company. Navalign LLC acquired a new stake in Wells Fargo & Company in the 4th quarter worth approximately $26,000. Joseph Group Capital Management acquired a new stake in Wells Fargo & Company in the 4th quarter worth approximately $28,000. Redmont Wealth Advisors LLC acquired a new stake in Wells Fargo & Company in the 3rd quarter worth approximately $27,000. Grey Fox Wealth Advisors LLC acquired a new stake in Wells Fargo & Company in the 3rd quarter worth approximately $30,000. Finally, Imprint Wealth LLC acquired a new stake in Wells Fargo & Company in the 3rd quarter worth approximately $31,000. 75.90% of the stock is currently owned by institutional investors and hedge funds.

Wells Fargo & Company Stock Performance

Shares of NYSE WFC opened at $73.46 on Monday. The company's fifty day moving average price is $79.30 and its 200 day moving average price is $85.63. Wells Fargo & Company has a 1 year low of $71.89 and a 1 year high of $97.76. The company has a market capitalization of $224.79 billion, a PE ratio of 11.34, a price-to-earnings-growth ratio of 0.86 and a beta of 0.96. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.90 and a current ratio of 0.90.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last announced its quarterly earnings results on Tuesday, April 14th. The financial services provider reported $1.60 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.58 by $0.02. Wells Fargo & Company had a net margin of 17.26% and a return on equity of 13.27%. The firm had revenue of $11.62 billion for the quarter, compared to the consensus estimate of $21.85 billion. During the same period in the prior year, the firm posted $1.39 earnings per share. The firm's quarterly revenue was up 6.4% compared to the same quarter last year. On average, research analysts predict that Wells Fargo & Company will post 6.82 earnings per share for the current year.

Wells Fargo & Company Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 8th will be given a dividend of $0.45 per share. The ex-dividend date is Friday, May 8th. This represents a $1.80 dividend on an annualized basis and a yield of 2.5%. Wells Fargo & Company's dividend payout ratio is currently 27.78%.

Wells Fargo & Company News Roundup

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

• Negative Sentiment: JPMorgan reiterated a Hold rating on Wells Fargo and cut its price target to $86.50 from $91, reinforcing a more cautious near-term outlook for the stock. Wells Fargo (WFC) Stock Expected To Stay Under Pressure In The Short Term
• Neutral Sentiment: Wells Fargo announced cash dividends on six series of preferred stock, a routine capital return update that should not materially change the near-term outlook for common shares. Wells Fargo & Company Declares Cash Dividends on Preferred Stock
• Neutral Sentiment: Commentary around Wells Fargo’s post-earnings performance noted that the stock remains below its recent levels after the company’s latest results, with investors still assessing whether revenue growth can offset higher compensation and technology costs. Wells Fargo Revenues Are Rising, But Can It Bend the Cost Curve?
• Neutral Sentiment: Wells Fargo’s economists changed their view on the timing of the next Fed rate cut, highlighting uncertainty around inflation and interest-rate expectations that could influence bank earnings and net interest income. Wells Fargo sees writing on the wall about the next Fed rate cut
• Negative Sentiment: Broader financial stocks weakened in the latest session, which may be adding pressure to Wells Fargo as part of a sector-wide move lower. Sector Update: Financial Stocks Fall Wednesday

Analysts Set New Price Targets

WFC has been the subject of a number of recent analyst reports. Jefferies Financial Group initiated coverage on shares of Wells Fargo & Company in a research note on Thursday, March 26th. They issued a "buy" rating and a $100.00 target price for the company. HSBC upgraded shares of Wells Fargo & Company from a "hold" rating to a "buy" rating and set a $94.00 target price for the company in a research note on Wednesday, April 1st. Wall Street Zen upgraded shares of Wells Fargo & Company from a "sell" rating to a "hold" rating in a research note on Saturday. Barclays lowered their target price on shares of Wells Fargo & Company from $113.00 to $108.00 and set an "overweight" rating for the company in a research note on Wednesday, April 15th. Finally, The Goldman Sachs Group decreased their price objective on shares of Wells Fargo & Company from $109.00 to $93.00 and set a "buy" rating for the company in a research note on Monday, March 23rd. Two research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and ten have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $97.53.

Insiders Place Their Bets

In other Wells Fargo & Company news, EVP Bridget E. Engle sold 30,000 shares of the company's stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $87.10, for a total transaction of $2,613,000.00. Following the completion of the transaction, the executive vice president directly owned 83,478 shares in the company, valued at approximately $7,270,933.80. This represents a 26.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Kleber Santos sold 25,000 shares of the company's stock in a transaction on Friday, February 20th. The stock was sold at an average price of $87.72, for a total transaction of $2,193,000.00. Following the transaction, the executive vice president owned 79,876 shares of the company's stock, valued at $7,006,722.72. This represents a 23.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 115,000 shares of company stock worth $10,050,000. Company insiders own 0.14% of the company's stock.

Wells Fargo & Company 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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