Headlands Technologies LLC Invests $4.66 Million in Wells Fargo & Company $WFC

Key Points

• Headlands Technologies acquired 56,354 Wells Fargo shares during the second quarter, valued at approximately $4.66 million. Institutional investors own 75.9% of WFC’s outstanding stock.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $98.61; several firms recently raised their targets.
• Wells Fargo exceeded quarterly earnings and revenue expectations, while year-over-year revenue rose 8.6%. The bank also increased its quarterly dividend from $0.45 to $0.50 per share, implying a 2.3% annualized yield.

Headlands Technologies LLC bought a new stake in Wells Fargo & Company (NYSE:WFC) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 56,354 shares of the financial services provider's stock, valued at approximately $4,657,000.

Other large investors also recently made changes to their positions in the company. Godfrey Financial Associates Inc. bought a new stake in Wells Fargo & Company in the 4th quarter worth about $25,000. Miller Capital Partners Inc. bought a new position in shares of Wells Fargo & Company during the 4th quarter worth approximately $25,000. Navalign LLC purchased a new position in shares of Wells Fargo & Company in the 4th quarter worth approximately $26,000. Phillip James Consulting Co. purchased a new stake in shares of Wells Fargo & Company during the first quarter valued at approximately $28,000. Finally, Core Wealth Advisors LLC bought a new stake in Wells Fargo & Company during the fourth quarter worth $29,000. 75.90% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

WFC has been the topic of several research analyst reports. Truist Financial boosted their price objective on Wells Fargo & Company from $90.00 to $94.00 and gave the stock a "buy" rating in a research report on Friday, June 26th. Bank of America lifted their target price on Wells Fargo & Company from $95.00 to $102.00 and gave the stock a "buy" rating in a research note on Tuesday, July 7th. Robert W. Baird boosted their price target on shares of Wells Fargo & Company from $85.00 to $92.00 and gave the stock a "neutral" rating in a report on Wednesday, July 15th. Morgan Stanley raised their price objective on shares of Wells Fargo & Company from $97.00 to $102.00 and gave the stock an "equal weight" rating in a report on Monday, June 29th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Wells Fargo & Company from $93.50 to $95.50 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Two equities 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. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $98.61.

Key Stories Impacting Wells Fargo & Company

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

• Positive Sentiment: Wells Fargo is reportedly seeking to recruit hundreds of independent financial advisers, expanding its Wealth & Investment Management division and targeting affluent and high-net-worth clients. The initiative builds on a multiyear overhaul and could support fee-based revenue, asset growth and deeper customer relationships. WFC Broadens Wealth Focus: Can Its Multi-Year Revamp Drive Growth?
• Positive Sentiment: The wealth-management push follows an approximately $1.5 billion revamp and emphasizes independent advisers who can use Wells Fargo’s platform and infrastructure. Successful hiring and retention could improve the division’s long-term growth prospects, although benefits will take time to materialize. Wells Fargo Steps Up Wealth Hiring After $1.5 Billion Revamp
• Neutral Sentiment: Analysts collectively maintain a “Moderate Buy” recommendation for Wells Fargo. The rating indicates generally constructive sentiment, but it does not represent a new earnings forecast or a clearly identifiable catalyst. Wells Fargo Given Average Recommendation of Moderate Buy by Analysts
• Neutral Sentiment: A market-focused report noted that WFC advanced even as the broader market declined, suggesting relative investor support. The article did not identify a major new earnings announcement, guidance change or regulatory development behind the move. Wells Fargo Gains As Market Dips: What You Should Know

Wells Fargo & Company Trading Down 0.1%

Shares of WFC stock opened at $86.62 on Monday. The company has a debt-to-equity ratio of 1.09, a current ratio of 0.90 and a quick ratio of 0.90. Wells Fargo & Company has a 1 year low of $72.78 and a 1 year high of $97.76. The stock has a market capitalization of $261.94 billion, a price-to-earnings ratio of 12.59, a PEG ratio of 0.94 and a beta of 0.92. The company's fifty day simple moving average is $86.27 and its two-hundred day simple moving average is $82.63.

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

Wells Fargo & Company Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Friday, August 7th will be issued a $0.50 dividend. The ex-dividend date of this dividend is Friday, August 7th. This is an increase from Wells Fargo & Company's previous quarterly dividend of $0.45. This represents a $2.00 annualized dividend and a dividend yield of 2.3%. Wells Fargo & Company's payout ratio is currently 29.07%.

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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