Geode Capital Management LLC Sells 1,219,755 Shares of Wells Fargo & Company $WFC

Key Points

• Geode Capital Management trimmed its Wells Fargo stake by 1.7% in the fourth quarter, selling 1.22 million shares but still holding 72.38 million shares valued at about $6.72 billion.
• Recent company updates were mostly constructive: CEO Charlie Scharf said Wells Fargo expects mid-teen growth in investment banking and trading revenue in the second quarter, while the bank is also pushing into niche mortgage opportunities tied to 3D-printed homes.
• Despite those positives, investors still face concerns over stock weakness and regulatory/legal overhangs, including a reported $100 million settlement, even as analysts currently view WFC as a Moderate Buy with a consensus target price of $97.53.

Geode Capital Management LLC lessened its stake in shares of Wells Fargo & Company (NYSE:WFC) by 1.7% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 72,382,568 shares of the financial services provider's stock after selling 1,219,755 shares during the quarter. Geode Capital Management LLC owned approximately 2.31% of Wells Fargo & Company worth $6,716,547,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also bought and sold shares of WFC. Navalign LLC acquired a new stake in shares of Wells Fargo & Company in the 4th quarter worth $26,000. Redmont Wealth Advisors LLC acquired a new stake in shares of Wells Fargo & Company in the 3rd quarter worth $27,000. Joseph Group Capital Management acquired a new stake in shares of Wells Fargo & Company in the 4th quarter worth $28,000. Imprint Wealth LLC acquired a new stake in shares of Wells Fargo & Company in the 3rd quarter worth $31,000. Finally, Cloud Capital Management LLC acquired a new stake in shares of Wells Fargo & Company in the 3rd quarter worth $37,000. Institutional investors own 75.90% of the company's stock.

Wells Fargo & Company News Roundup

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

• Positive Sentiment: CEO Charlie Scharf said Wells Fargo expects investment banking and trading revenue to grow by mid-teen percentages in the second quarter, signaling improving fee-based momentum and helping support the bank’s earnings outlook. Wells Fargo CEO sees mid-teens growth in investment banking, trading
• Positive Sentiment: Wells Fargo also highlighted mortgage incentives tied to ICON’s 3D-printed homes, showing efforts to expand lending opportunities and grow originations in niche housing markets. Wells Fargo to offer mortgage incentives on 3D printed homes with Icon
• Neutral Sentiment: The company presented at Bernstein’s Strategic Decisions Conference, which may have kept Wells Fargo in focus but did not by itself add a major new catalyst. Wells Fargo & Company (WFC) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript
• Neutral Sentiment: Several articles reiterated Wells Fargo as a dividend stock and discussed its longer-term recovery potential, but these were largely commentary pieces rather than new fundamental developments. Wells Fargo (WFC) is a Top Dividend Stock Right Now: Should You Buy?
• Negative Sentiment: Recent coverage noted that WFC shares have fallen sharply year to date and were down again after a six-day rally, suggesting investors are still wary about the stock’s near-term momentum. Wells Fargo (WFC) Stock Falls Amid Market Uptick: What Investors Need to Know
• Negative Sentiment: Investor attention also remains on Wells Fargo’s still-elevated legal and regulatory overhangs, including a reported $100 million settlement tied to struggling homebuyers. Wells Fargo settlement will pay 100M to help struggling homebuyers in 51 cities

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on WFC shares. Wall Street Zen raised Wells Fargo & Company from a "sell" rating to a "hold" rating in a research report on Saturday, May 16th. KGI Securities cut Wells Fargo & Company to a "hold" rating in a research report on Thursday, April 16th. Phillip Securities raised Wells Fargo & Company from a "moderate buy" rating to a "strong-buy" rating in a research report on Thursday, May 7th. Weiss Ratings reissued a "buy (b)" rating on shares of Wells Fargo & Company in a research report on Monday, April 20th. Finally, Morgan Stanley lowered their price objective on Wells Fargo & Company from $108.00 to $100.00 and set an "equal weight" rating for the company in a research report on Tuesday, March 31st. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $97.53.

Wells Fargo & Company Stock Performance

Shares of WFC opened at $76.02 on Thursday. The stock has a 50-day moving average of $79.02 and a two-hundred day moving average of $85.03. Wells Fargo & Company has a one year low of $71.93 and a one year high of $97.76. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.90 and a current ratio of 0.90. The stock has a market cap of $232.65 billion, a P/E ratio of 11.73, a P/E/G ratio of 0.91 and a beta of 0.96.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last released its quarterly earnings data on Tuesday, April 14th. The financial services provider reported $1.60 earnings per share for the quarter, beating analysts' consensus estimates of $1.58 by $0.02. The business had revenue of $11.62 billion during the quarter, compared to analyst estimates of $21.85 billion. Wells Fargo & Company had a return on equity of 13.27% and a net margin of 17.26%.The company's revenue was up 6.4% on a year-over-year basis. During the same quarter last year, the business posted $1.39 EPS. As a group, research analysts predict that Wells Fargo & Company will post 6.84 EPS 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 paid 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 dividend yield of 2.4%. Wells Fargo & Company's dividend payout ratio (DPR) is presently 27.78%.

About Wells Fargo & Company

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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