LSV Asset Management Sells 228,440 Shares of Wells Fargo & Company $WFC

Key Points

• LSV Asset Management trimmed its Wells Fargo stake by 3.5% in the fourth quarter, selling 228,440 shares while still holding 6.29 million shares valued at about $586.4 million. Wells Fargo remains LSV’s fifth-largest position and makes up about 1.3% of its portfolio.
• Wells Fargo’s latest quarter showed $1.60 EPS, slightly ahead of analyst estimates, and the company reaffirmed a quarterly dividend of $0.45 per share for a 2.4% yield. The stock was trading around $76.52, near the lower end of its 12-month range.
• Market sentiment remains mixed but constructive: analysts have a Moderate Buy consensus despite several price target cuts, while recent news highlights the launch of Advisor Gateway, efficiency/cost-cutting efforts, and a relatively muted response to a $110 million discrimination settlement.

LSV Asset Management reduced its stake in shares of Wells Fargo & Company (NYSE:WFC - Free Report) by 3.5% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 6,291,908 shares of the financial services provider's stock after selling 228,440 shares during the period. Wells Fargo & Company comprises approximately 1.3% of LSV Asset Management's holdings, making the stock its 5th biggest position. LSV Asset Management owned 0.20% of Wells Fargo & Company worth $586,406,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently added to or reduced their stakes in the company. Navalign LLC acquired a new position in Wells Fargo & Company during the 4th quarter worth $26,000. Redmont Wealth Advisors LLC acquired a new position in Wells Fargo & Company during the 3rd quarter worth $27,000. Joseph Group Capital Management acquired a new position in Wells Fargo & Company during the 4th quarter worth $28,000. Imprint Wealth LLC acquired a new position in Wells Fargo & Company during the 3rd quarter worth $31,000. Finally, Cloud Capital Management LLC acquired a new position in Wells Fargo & Company during the 3rd quarter worth $37,000. 75.90% of the stock is owned by institutional investors and hedge funds.

Wells Fargo & Company Trading Up 0.8%

Shares of NYSE WFC opened at $76.52 on Friday. Wells Fargo & Company has a 12-month low of $71.89 and a 12-month high of $97.76. The company has a market cap of $234.15 billion, a price-to-earnings ratio of 11.81, a price-to-earnings-growth ratio of 0.89 and a beta of 0.96. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.12. The stock's 50 day simple moving average is $78.92 and its 200 day simple moving average is $85.25.

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

Wells Fargo & Company Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 8th will be paid a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Friday, May 8th. Wells Fargo & Company's dividend payout ratio (DPR) is presently 27.78%.

Wells Fargo & Company News Roundup

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

• Positive Sentiment: Wells Fargo launched Advisor Gateway, a new desktop platform for financial advisors that gives access to more than 200 tools and applications. Investors may see this as a sign the bank is investing in technology and advisor productivity, which could support fee growth and client retention. Wells Fargo & Company (WFC) Launches Advisor Gateway, Here’s What You Need to Know
• Positive Sentiment: Analysts and market commentary continue to frame WFC as undervalued, with cost cuts and efficiency improvements potentially helping the bank reach its 17%–18% ROTCE target. That supports the case for earnings leverage if management executes well. WFC's Efficiency Story: Will Cost Cuts Lift ROTCE to Its Target Level?
• Positive Sentiment: Wall Street reaction to the recent $110 million discrimination settlement has been relatively muted to constructive, with commentary noting a buy-skewed analyst consensus and insider buying. That suggests investors may be looking past the legal overhang. Wall Street’s Verdict on Wells Fargo After the $110 Million Discrimination Settlement
• Neutral Sentiment: One article on Wells Fargo’s revised price target for Alphabet is only indirectly relevant to WFC and does not appear to be a direct driver of the stock today.
• Neutral Sentiment: Several repeat items discuss the same Advisor Gateway launch and efficiency/cost-cutting story, reinforcing the same theme rather than adding a new catalyst.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on WFC. Barclays decreased their price objective on shares of Wells Fargo & Company from $113.00 to $108.00 and set an "overweight" rating for the company in a report on Wednesday, April 15th. Keefe, Bruyette & Woods decreased their price objective on shares of 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. 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 report on Monday, March 23rd. KGI Securities lowered shares of Wells Fargo & Company to a "hold" rating in a report on Thursday, April 16th. Finally, Piper Sandler reaffirmed an "overweight" rating and issued a $94.00 price target (down from $100.00) on shares of Wells Fargo & Company in a report on Wednesday, April 15th. Two research 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 stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $97.53.

Insiders Place Their Bets

In other Wells Fargo & Company news, EVP Ellen R. Patterson sold 60,000 shares of the firm's stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $87.40, for a total value of $5,244,000.00. Following the sale, the executive vice president directly owned 169,496 shares in the company, valued at approximately $14,813,950.40. This trade represents a 26.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, 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 value of $2,613,000.00. Following the completion of the sale, the executive vice president owned 83,478 shares in the company, valued at $7,270,933.80. The trade was a 26.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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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