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

Key Points

• Merit Financial Group reduced its Wells Fargo stake by 18.8% in the second quarter, selling 31,696 shares and retaining 137,030 shares valued at approximately $11.3 million. Institutional investors overall own 75.9% of WFC.
• Wells Fargo reported stronger-than-expected quarterly results, with EPS of $1.96 and revenue of $22.62 billion, up 8.6% year over year. The bank also raised its quarterly dividend from $0.45 to $0.50 per share, representing a 2.3% annualized yield.
• Shares opened at $88.74, below the analyst consensus price target of $98.61; analysts maintain a “Moderate Buy” consensus, though recent gains and valuation could create near-term profit-taking risks.

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

Several other large investors have also added to or reduced their stakes in the company. Nixon Peabody Trust Co. increased its stake in shares of Wells Fargo & Company by 3.6% in the fourth quarter. Nixon Peabody Trust Co. now owns 3,351 shares of the financial services provider's stock worth $312,000 after purchasing an additional 115 shares in the last quarter. Simmons Bank raised its position in shares of Wells Fargo & Company by 1.9% during the 4th quarter. Simmons Bank now owns 6,359 shares of the financial services provider's stock valued at $593,000 after purchasing an additional 116 shares during the period. Wood Tarver Financial Group LLC lifted its stake in shares of Wells Fargo & Company by 1.6% during the 4th quarter. Wood Tarver Financial Group LLC now owns 7,754 shares of the financial services provider's stock valued at $722,000 after buying an additional 120 shares in the last quarter. Mine & Arao Wealth Creation & Management LLC. boosted its holdings in Wells Fargo & Company by 0.4% in the 4th quarter. Mine & Arao Wealth Creation & Management LLC. now owns 32,410 shares of the financial services provider's stock worth $3,021,000 after buying an additional 122 shares during the period. Finally, Allegheny Financial Group boosted its holdings in Wells Fargo & Company by 2.2% in the 4th quarter. Allegheny Financial Group now owns 5,803 shares of the financial services provider's stock worth $541,000 after buying an additional 125 shares during the period. Hedge funds and other institutional investors own 75.90% of the company's stock.

Key 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?

Wells Fargo & Company Stock Down 0.1%

WFC opened at $88.74 on Monday. The company has a market capitalization of $268.34 billion, a PE ratio of 12.90, a price-to-earnings-growth ratio of 0.97 and a beta of 0.92. The firm has a 50-day simple moving average of $85.73 and a two-hundred day simple moving average of $83.06. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.09. 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 issued its earnings results on Tuesday, July 14th. The financial services provider reported $1.96 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $22.62 billion for the quarter, compared to analysts' expectations of $21.86 billion. During the same period in the previous year, the firm posted $1.60 earnings per share. The business's revenue was up 8.6% compared to the same quarter last year. Analysts forecast that Wells Fargo & Company will post 7.26 earnings per share for the current fiscal year.

Wells Fargo & Company Increases Dividend

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Wall Street Zen raised Wells Fargo & Company from a "sell" rating to a "hold" rating in a report on Sunday, June 14th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Wells Fargo & Company in a research note on Friday, July 17th. Raymond James Financial reiterated a "market perform" rating on shares of Wells Fargo & Company in a research report on Tuesday, July 14th. Keefe, Bruyette & Woods lowered their price target on Wells Fargo & Company from $98.00 to $94.00 and set a "market perform" rating on the stock in a report on Wednesday, July 15th. Finally, UBS Group dropped their price target on Wells Fargo & Company from $105.00 to $104.00 and set a "buy" rating for the company in a research note on Tuesday, July 7th. 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. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $98.61.

Wells Fargo & 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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