Mondrian Investment Partners LTD Trims Stake in Wells Fargo & Company $WFC

Key Points

• Mondrian Investment Partners cut its Wells Fargo stake by 22.4% in the fourth quarter, selling 369,107 shares and leaving it with 1,282,027 shares valued at about $119.5 million.
• Recent news has been largely constructive, including Wells Fargo’s launch of Advisor Gateway for financial advisors and ongoing bullish commentary around cost cuts and efficiency gains that could help the bank reach its 17%–18% ROTCE target.
• Wells Fargo reported Q1 EPS of $1.60, beating estimates by a penny, and reiterated a quarterly dividend of $0.45 per share for a 2.4% yield; analysts currently rate the stock Moderate Buy with an average price target of $97.53.

Mondrian Investment Partners LTD reduced its stake in shares of Wells Fargo & Company (NYSE:WFC - Free Report) by 22.4% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,282,027 shares of the financial services provider's stock after selling 369,107 shares during the quarter. Wells Fargo & Company accounts for 1.9% of Mondrian Investment Partners LTD's holdings, making the stock its 25th largest position. Mondrian Investment Partners LTD's holdings in Wells Fargo & Company were worth $119,485,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors also recently bought and sold shares of WFC. Brighton Jones LLC increased its position in shares of Wells Fargo & Company by 62.3% in the fourth quarter. Brighton Jones LLC now owns 66,233 shares of the financial services provider's stock valued at $4,652,000 after buying an additional 25,436 shares in the last quarter. Jump Financial LLC increased its position in shares of Wells Fargo & Company by 12.9% in the second quarter. Jump Financial LLC now owns 22,904 shares of the financial services provider's stock valued at $1,835,000 after buying an additional 2,615 shares in the last quarter. Main Street Financial Solutions LLC increased its position in shares of Wells Fargo & Company by 111.0% in the second quarter. Main Street Financial Solutions LLC now owns 14,008 shares of the financial services provider's stock valued at $1,122,000 after buying an additional 7,368 shares in the last quarter. Vivaldi Capital Management LP increased its position in shares of Wells Fargo & Company by 5.4% in the second quarter. Vivaldi Capital Management LP now owns 3,229 shares of the financial services provider's stock valued at $259,000 after buying an additional 165 shares in the last quarter. Finally, Diversify Advisory Services LLC increased its position in shares of Wells Fargo & Company by 51.2% in the second quarter. Diversify Advisory Services LLC now owns 25,718 shares of the financial services provider's stock valued at $2,044,000 after buying an additional 8,714 shares in the last quarter. 75.90% of the stock is currently owned by hedge funds and other institutional investors.

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.

Wall Street Analyst Weigh In

A number of analysts have recently commented on WFC shares. Piper Sandler restated an "overweight" rating and issued a $94.00 price objective (down from $100.00) on shares of Wells Fargo & Company in a research report on Wednesday, April 15th. Morgan Stanley cut their price objective on 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. JPMorgan Chase & Co. cut their price objective on Wells Fargo & Company from $91.00 to $86.50 and set a "neutral" rating for the company in a research report on Thursday, April 30th. Barclays cut their price objective on Wells Fargo & Company from $113.00 to $108.00 and set an "overweight" rating for the company in a research report on Wednesday, April 15th. Finally, Phillip Securities upgraded Wells Fargo & Company from a "moderate buy" rating to a "strong-buy" rating in a research report on Thursday, May 7th. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, Wells Fargo & Company currently has a consensus rating of "Moderate Buy" and an average price target of $97.53.

Wells Fargo & Company Stock Up 0.8%

Shares of WFC opened at $76.52 on Friday. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.90 and a current ratio of 0.90. Wells Fargo & Company has a one year low of $71.89 and a one year high of $97.76. The stock has a market capitalization of $234.15 billion, a price-to-earnings ratio of 11.81, a PEG ratio of 0.90 and a beta of 0.96. The stock has a 50 day moving average price of $78.92 and a 200 day moving average price of $85.25.

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 EPS for the quarter, topping the consensus estimate 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 analysts' expectations of $21.85 billion. During the same period in the previous year, the business earned $1.39 earnings per share. The firm's revenue for the quarter was up 6.4% on a year-over-year basis. Equities research analysts forecast that Wells Fargo & Company will post 6.82 earnings per share for the current fiscal year.

Wells Fargo & Company Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Friday, May 8th will be given a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Friday, May 8th. Wells Fargo & Company's payout ratio is presently 27.78%.

Insider Activity at Wells Fargo & Company

In related news, EVP Bridget E. Engle sold 30,000 shares of the business's stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $87.10, for a total transaction of $2,613,000.00. Following the completion of the sale, the executive vice president directly owned 83,478 shares in the company, valued at approximately $7,270,933.80. The trade was a 26.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Ellen R. Patterson sold 60,000 shares of the business's stock in a transaction that occurred 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 owned 169,496 shares of the company's stock, valued at $14,813,950.40. The trade was a 26.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.14% of the stock is currently owned by insiders.

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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