MV Capital Management Inc. Makes New Investment in Wells Fargo & Company $WFC

Key Points

• MV Capital Management Inc. initiated a new position in Wells Fargo, buying 17,181 shares worth about $1.6 million in the fourth quarter.
• Institutional ownership remains heavy, with hedge funds and other investors holding 75.9% of the stock and several firms adding or starting stakes during the quarter.
• Wells Fargo posted a better-than-expected quarterly EPS of $1.60 and continues to pay a quarterly dividend of $0.45 per share, while analysts maintain a Moderate Buy consensus with an average target price of $98.24.

MV Capital Management Inc. bought a new stake in Wells Fargo & Company (NYSE:WFC) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 17,181 shares of the financial services provider's stock, valued at approximately $1,601,000.

Other institutional investors and hedge funds have also modified their holdings of the company. Sunbelt Securities Inc. grew its stake in shares of Wells Fargo & Company by 3.8% in the fourth quarter. Sunbelt Securities Inc. now owns 27,996 shares of the financial services provider's stock valued at $2,609,000 after acquiring an additional 1,027 shares in the last quarter. Cambient Family Office LLC acquired a new stake in Wells Fargo & Company in the 4th quarter worth about $1,014,000. Mcguire Capital Advisors Inc. acquired a new stake in Wells Fargo & Company in the 4th quarter worth about $49,000. WealthPoint Financial LLC bought a new stake in Wells Fargo & Company in the 4th quarter valued at about $360,000. Finally, Van Diest Capital LLC bought a new stake in Wells Fargo & Company in the 4th quarter valued at about $767,000. 75.90% of the stock is currently owned by institutional investors and hedge funds.

Wells Fargo & Company Price Performance

Shares of NYSE:WFC opened at $82.31 on Friday. The firm has a 50 day moving average of $79.75 and a 200-day moving average of $84.60. The stock has a market capitalization of $251.89 billion, a PE ratio of 12.70, a PEG ratio of 0.98 and a beta of 0.93. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.12. Wells Fargo & Company has a 12 month low of $72.78 and a 12 month high of $97.76.

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 analysts' consensus estimates of $1.58 by $0.02. The company had revenue of $11.62 billion during the quarter, compared to the consensus estimate of $21.85 billion. Wells Fargo & Company had a net margin of 17.26% and a return on equity of 13.27%. The firm's quarterly revenue was up 6.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.39 EPS. On average, equities research analysts predict that Wells Fargo & Company will post 6.86 EPS for the current fiscal year.

Wells Fargo & Company Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Friday, May 8th were paid a dividend of $0.45 per share. The ex-dividend date was Friday, May 8th. This represents a $1.80 annualized dividend and a yield of 2.2%. Wells Fargo & Company's dividend payout ratio is presently 27.78%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on WFC. Barclays lowered their target price on shares of Wells Fargo & Company from $113.00 to $108.00 and set an "overweight" rating on the stock in a report on Wednesday, April 15th. Phillip Securities upgraded Wells Fargo & Company from a "moderate buy" rating to a "strong-buy" rating in a research note on Thursday, May 7th. The Goldman Sachs Group reduced their price target on Wells Fargo & Company from $109.00 to $93.00 and set a "buy" rating on the stock in a research report on Monday, March 23rd. Piper Sandler restated an "overweight" rating and set a $94.00 price objective (down from $100.00) on shares of Wells Fargo & Company in a research note on Wednesday, April 15th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Wells Fargo & Company in a report on Monday, April 20th. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $98.24.

Trending Headlines about Wells Fargo & Company

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

• Positive Sentiment: The Federal Reserve’s move to soften Basel III capital requirements could be a meaningful tailwind for U.S. banks, including Wells Fargo, by easing regulatory pressure and potentially improving capital flexibility and returns. The Quiet Revolution at the Fed: The U.S. Banking Sector Received a Catalyst More Potent than Rate Cuts
• Positive Sentiment: Wells Fargo has been drawing investor attention as a trending stock, likely reflecting continued interest in the bank’s earnings outlook, valuation, and sector positioning. Here is What to Know Beyond Why Wells Fargo & Company (WFC) is a Trending Stock
• Neutral Sentiment: Wells Fargo Investment Institute’s midyear outlook emphasized discipline amid volatility and uncertainty, which is more of a market-commentary update than a direct catalyst for WFC shares. Wells Fargo Investment Institute: When Every Headline Shouts, Discipline Matters Most
• Neutral Sentiment: Wells Fargo also raised its S&P 500 year-end target on stronger earnings and easing macro risks, which supports a constructive market backdrop for financial stocks, though it is not specific to WFC’s fundamentals. US Stock Market: Wells Fargo raises S&P 500 target on stronger earnings outlook, easing macro risks
• Negative Sentiment: Osaic said Signature Private Wealth Management left Wells Fargo Advisors Financial Network with more than $300 million in client assets, a small but notable advisor-asset outflow that could weigh on sentiment around Wells Fargo’s wealth management business. Osaic Welcomes Signature Private Wealth Management from Wells Fargo Advisors Financial Network with over $300 Million in Client Assets

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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