HighTower Advisors LLC Cuts Stock Position in Wells Fargo & Company $WFC

Key Points

• HighTower Advisors slightly reduced its Wells Fargo position in the fourth quarter, selling 22,341 shares and leaving it with 3.41 million shares worth about $317.7 million.
• Other large institutions mostly added to their Wells Fargo holdings, and overall institutional ownership remains high at 75.9% of the stock.
• Wells Fargo’s shares were trading up 1.3% at $74.37, while analysts maintain a Moderate Buy rating with an average price target of $97.53; the company also recently reported earnings above expectations and declared a quarterly dividend of $0.45 per share.

HighTower Advisors LLC cut its position in Wells Fargo & Company (NYSE:WFC - Free Report) by 0.7% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 3,408,993 shares of the financial services provider's stock after selling 22,341 shares during the quarter. HighTower Advisors LLC owned approximately 0.11% of Wells Fargo & Company worth $317,718,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Capital Research Global Investors grew its holdings in Wells Fargo & Company by 18.6% in the third quarter. Capital Research Global Investors now owns 35,660,903 shares of the financial services provider's stock worth $2,989,104,000 after purchasing an additional 5,584,930 shares during the last quarter. Legal & General Group Plc lifted its holdings in shares of Wells Fargo & Company by 1.9% during the 3rd quarter. Legal & General Group Plc now owns 21,009,237 shares of the financial services provider's stock valued at $1,760,994,000 after purchasing an additional 399,088 shares during the last quarter. Boston Partners lifted its holdings in shares of Wells Fargo & Company by 1.9% during the 3rd quarter. Boston Partners now owns 9,128,470 shares of the financial services provider's stock valued at $763,675,000 after purchasing an additional 174,350 shares during the last quarter. Davis Selected Advisers lifted its holdings in shares of Wells Fargo & Company by 6.1% during the 4th quarter. Davis Selected Advisers now owns 8,258,031 shares of the financial services provider's stock valued at $769,649,000 after purchasing an additional 471,979 shares during the last quarter. Finally, California Public Employees Retirement System boosted its position in shares of Wells Fargo & Company by 8.5% in the 3rd quarter. California Public Employees Retirement System now owns 6,726,087 shares of the financial services provider's stock worth $563,781,000 after purchasing an additional 529,305 shares in the last quarter. 75.90% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on WFC. JPMorgan Chase & Co. dropped their target price on Wells Fargo & Company from $91.00 to $86.50 and set a "neutral" rating on the stock in a research note on Thursday, April 30th. Keefe, Bruyette & Woods lowered their price target on Wells Fargo & Company from $101.00 to $98.00 and set a "market perform" rating for the company in a report on Wednesday, April 15th. KGI Securities lowered Wells Fargo & Company to a "hold" rating in a research note on Thursday, April 16th. Robert W. Baird upgraded shares of Wells Fargo & Company from an "underperform" rating to a "neutral" rating and set a $85.00 price objective on the stock in a report on Friday, February 13th. Finally, Morgan Stanley decreased their price objective on shares of 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 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's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $97.53.

Insider Buying and Selling

In related news, EVP Bridget E. Engle sold 30,000 shares of the firm'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 owned 83,478 shares of the company's stock, valued at $7,270,933.80. This trade represents a 26.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Kleber Santos sold 25,000 shares of the business's stock in a transaction on Friday, February 20th. The shares were 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. Insiders sold a total of 115,000 shares of company stock valued at $10,050,000 over the last 90 days. Insiders own 0.14% of the company's stock.

Trending Headlines about Wells Fargo & Company

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

• Positive Sentiment: The NAHB/Wells Fargo Housing Market Index unexpectedly rose to 37 in May, signaling a modest rebound in homebuilder confidence and supporting a more constructive outlook for mortgage and housing-related banking activity. U.S. Homebuilder Confidence Unexpectedly Rebounds In May
• Positive Sentiment: Wells Fargo and Lazard moved up league tables on NextEra Energy’s $67 billion acquisition of Dominion Energy, highlighting stronger investment-banking deal activity that could support fee income. Lazard, Wells Fargo Vault Up League Tables on NextEra-Dominion Deal
• Neutral Sentiment: Wells Fargo settled a lawsuit alleging hiring and lending discrimination for $110 million, including a $100 million fund for eligible borrowers in certain low- and moderate-income areas. The agreement removes uncertainty, but it also underscores continued legal and reputational risk. Wells Fargo settles lawsuit alleging hiring, lending discrimination
• Neutral Sentiment: Bloomberg Law reported that Wells Fargo’s $110 million discrimination settlement was approved, confirming the charge but reducing litigation uncertainty going forward. Wells Fargo’s $110 Million Discrimination Settlement is Approved
• Neutral Sentiment: News about Wells Fargo’s call on Disney is not directly material to WFC’s earnings outlook, though it reflects ongoing research activity from the bank’s analysts. Disney (DIS) Still Has Significant Upside Potential, Says Wells Fargo
• Negative Sentiment: Earlier market coverage noted Wells Fargo extending losses alongside Bank of America in a weak broader financials tape, suggesting some sector pressure may still be weighing on the shares. Bank of America, Wells Fargo extend losses; Japanese firms in gainers: week's financials wrap

Wells Fargo & Company Trading Up 1.3%

Wells Fargo & Company stock opened at $74.37 on Tuesday. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.12. Wells Fargo & Company has a 52 week low of $71.89 and a 52 week high of $97.76. The company has a market capitalization of $227.59 billion, a price-to-earnings ratio of 11.48, a price-to-earnings-growth ratio of 0.86 and a beta of 0.96. The stock has a 50-day moving average price of $79.15 and a 200 day moving average price of $85.54.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last issued its quarterly earnings results on Tuesday, April 14th. The financial services provider reported $1.60 earnings per share for the quarter, topping the consensus estimate 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 company had revenue of $11.62 billion for the quarter, compared to the consensus estimate of $21.85 billion. During the same quarter in the prior year, the company earned $1.39 EPS. Wells Fargo & Company's quarterly revenue was up 6.4% on a year-over-year basis. Sell-side analysts anticipate that Wells Fargo & Company will post 6.82 EPS for the current year.

Wells Fargo & Company Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Friday, May 8th will be paid a $0.45 dividend. 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 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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