Merit Financial Group LLC Sells 31,696 Shares of Wells Fargo & Company $WFC

Key Points

• Merit Financial Group cut its Wells Fargo position by 18.8% in the second quarter, selling 31,696 shares and retaining 137,030 shares valued at about $11.3 million. Institutional investors collectively own 75.9% of WFC.
• Wells Fargo beat quarterly expectations with $1.96 earnings per share versus the $1.73 estimate and $22.62 billion in revenue, up 8.6% year over year.
• The bank raised its quarterly dividend to $0.50 per share, or $2.00 annually, representing a 2.3% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $98.61.

Merit Financial Group LLC reduced its position in shares of Wells Fargo & Company (NYSE:WFC) by 18.8% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 137,030 shares of the financial services provider's stock after selling 31,696 shares during the quarter. Merit Financial Group LLC's holdings in Wells Fargo & Company were worth $11,324,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Formidable Asset Management LLC grew its position in Wells Fargo & Company by 6.3% during the second quarter. Formidable Asset Management LLC now owns 15,434 shares of the financial services provider's stock valued at $1,229,000 after buying an additional 913 shares during the period. Lynch Investment Planning LLC raised its position in Wells Fargo & Company by 8.9% in the second quarter. Lynch Investment Planning LLC now owns 4,876 shares of the financial services provider's stock worth $403,000 after acquiring an additional 400 shares during the period. Burton Enright Welch boosted its stake in shares of Wells Fargo & Company by 8.6% during the 2nd quarter. Burton Enright Welch now owns 7,601 shares of the financial services provider's stock worth $628,000 after acquiring an additional 604 shares during the last quarter. Larry Mathis Financial Planning LLC boosted its stake in shares of Wells Fargo & Company by 1.3% during the 2nd quarter. Larry Mathis Financial Planning LLC now owns 11,091 shares of the financial services provider's stock worth $917,000 after acquiring an additional 138 shares during the last quarter. Finally, Cary Street Partners Investment Advisory LLC grew its position in shares of Wells Fargo & Company by 4.5% during the 2nd quarter. Cary Street Partners Investment Advisory LLC now owns 7,811 shares of the financial services provider's stock valued at $646,000 after acquiring an additional 338 shares during the period. Hedge funds and other institutional investors own 75.90% of the company's stock.

Wells Fargo & Company Price Performance

NYSE:WFC opened at $88.74 on Friday. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.09. The business's 50-day simple moving average is $85.73 and its two-hundred day simple moving average is $83.10. The stock has a market cap of $268.34 billion, a PE ratio of 12.90, a P/E/G ratio of 0.97 and a beta of 0.92. Wells Fargo & Company has a 52 week low of $72.78 and a 52 week high of $97.76.

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

Wells Fargo & Company Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors 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 represents a $2.00 dividend on an annualized basis and a yield of 2.3%. This is a boost from Wells Fargo & Company's previous quarterly dividend of $0.45. Wells Fargo & Company's payout ratio is presently 29.07%.

More Wells Fargo & Company News

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

• Positive Sentiment: Wells Fargo declared quarterly cash dividends on six series of preferred stock. The announcement provides clarity for income-focused investors and signals that the bank continues to support its preferred-capital structure. Wells Fargo & Company Declares Cash Dividends on Preferred Stock
• Positive Sentiment: Recent analysis suggests WFC could be about 10% undervalued despite strong gains over the past three months, supporting the view that valuation may still leave room for additional appreciation. Wells Fargo Could Be 10% Undervalued After Preferred Dividend Declaration
• Positive Sentiment: Investors have been rotating from weaker-performing artificial-intelligence stocks into financials, creating a favorable sector backdrop for Wells Fargo and other banks. Risk-On Momentum in Bank Stocks Echoes Aftermath of Dot-Com Bust
• Positive Sentiment: Wells Fargo’s latest earnings exceeded expectations, with $1.96 in earnings per share and $22.62 billion in revenue, while revenue grew 8.6% year over year. Analysts continue to focus on potential net-interest-income growth, asset-cap removal and increased capital returns. WFC Stock Gains 20.5% in 3 Months: Buy, Hold or Sell the Stock Now?
• Neutral Sentiment: The bank is expanding its post-asset-cap strategy through tokenized deposits for corporate clients and new long-term debt and depositary-share offerings. The initiatives could improve payment capabilities and investment capacity, but their financial impact remains uncertain. Is Wells Fargo’s Tokenized Deposit Push Reshaping Its Post-Cap Investment Story?
• Negative Sentiment: After a roughly 20% three-month advance, valuation and profit-taking risks could limit near-term upside, making investors more sensitive to execution on growth and regulatory milestones. Why Is Wells Fargo Up Since Last Earnings Report?

Analyst Ratings Changes

A number of analysts have commented on the company. Keefe, Bruyette & Woods reduced their price target on Wells Fargo & Company from $98.00 to $94.00 and set a "market perform" rating for the company in a research report on Wednesday, July 15th. Morgan Stanley lifted their price objective on Wells Fargo & Company from $97.00 to $102.00 and gave the company an "equal weight" rating in a research report on Monday, June 29th. Wall Street Zen upgraded Wells Fargo & Company from a "sell" rating to a "hold" rating in a research note on Sunday, June 14th. Robert W. Baird increased their target price 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. Finally, Raymond James Financial restated a "market perform" rating on shares of Wells Fargo & Company in a research note on Tuesday, July 14th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $98.61.

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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