Ontario Teachers Pension Plan Board Makes New $8.19 Million Investment in Wells Fargo & Company (NYSE:WFC)

Key Points

• The Ontario Teachers Pension Plan Board acquired a new position in Wells Fargo & Company, purchasing 114,105 shares valued at approximately $8.19 million during the first quarter.
• Wells Fargo's recent quarterly earnings report indicated earnings per share of $1.54, surpassing analysts' expectations of $1.41, while revenue slightly decreased compared to forecasts.
• The company announced a dividend increase to $0.45 per share, up from $0.40, reflecting a dividend yield of 2.3% and a payout ratio of 27.40%.

Ontario Teachers Pension Plan Board bought a new stake in Wells Fargo & Company (NYSE:WFC - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 114,105 shares of the financial services provider's stock, valued at approximately $8,192,000.

Several other hedge funds also recently modified their holdings of WFC. Northern Trust Corp boosted its stake in Wells Fargo & Company by 10.7% during the 4th quarter. Northern Trust Corp now owns 34,339,295 shares of the financial services provider's stock worth $2,411,992,000 after acquiring an additional 3,307,855 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in Wells Fargo & Company by 1.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 20,369,222 shares of the financial services provider's stock worth $1,430,742,000 after acquiring an additional 238,131 shares during the last quarter. Capital Research Global Investors boosted its stake in Wells Fargo & Company by 932.0% during the 4th quarter. Capital Research Global Investors now owns 15,734,874 shares of the financial services provider's stock worth $1,105,218,000 after acquiring an additional 14,210,193 shares during the last quarter. Capital World Investors boosted its stake in Wells Fargo & Company by 0.4% during the 4th quarter. Capital World Investors now owns 13,914,098 shares of the financial services provider's stock worth $977,338,000 after acquiring an additional 62,099 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its stake in Wells Fargo & Company by 277.4% during the 1st quarter. Massachusetts Financial Services Co. MA now owns 10,740,934 shares of the financial services provider's stock worth $771,092,000 after acquiring an additional 7,894,919 shares during the last quarter. Institutional investors own 75.90% of the company's stock.

Wells Fargo & Company Stock Up 0.9%

Shares of NYSE WFC traded up $0.73 during midday trading on Friday, reaching $77.78. The company's stock had a trading volume of 14,121,735 shares, compared to its average volume of 18,813,622. The stock has a market capitalization of $249.16 billion, a price-to-earnings ratio of 13.32, a PEG ratio of 1.20 and a beta of 1.20. Wells Fargo & Company has a fifty-two week low of $50.22 and a fifty-two week high of $84.83. The stock has a 50 day simple moving average of $78.92 and a 200-day simple moving average of $74.97. The company has a current ratio of 0.84, a quick ratio of 0.83 and a debt-to-equity ratio of 1.06.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last posted its quarterly earnings results on Tuesday, July 15th. The financial services provider reported $1.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.41 by $0.13. Wells Fargo & Company had a net margin of 16.82% and a return on equity of 12.29%. The firm had revenue of $20.82 billion for the quarter, compared to analyst estimates of $20.83 billion. During the same period in the prior year, the firm posted $1.33 earnings per share. The company's quarterly revenue was up .6% compared to the same quarter last year. Equities research analysts predict that Wells Fargo & Company will post 5.89 earnings per share for the current year.

Wells Fargo & Company announced that its board has initiated a stock buyback program on Tuesday, April 29th that permits the company to buyback $40.00 billion in outstanding shares. This buyback authorization permits the financial services provider to repurchase up to 17.2% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's management believes its stock is undervalued.

Wells Fargo & Company Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 1st. Shareholders of record on Friday, August 8th will be given a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 2.3%. This is an increase from Wells Fargo & Company's previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Friday, August 8th. Wells Fargo & Company's payout ratio is currently 27.40%.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on WFC shares. Bank of America lifted their price objective on shares of Wells Fargo & Company from $83.00 to $90.00 and gave the stock a "buy" rating in a research note on Wednesday, June 4th. Cowen reaffirmed a "hold" rating on shares of Wells Fargo & Company in a research note on Wednesday, July 16th. TD Cowen began coverage on shares of Wells Fargo & Company in a research note on Thursday, May 15th. They issued a "hold" rating and a $83.00 price target on the stock. The Goldman Sachs Group cut their price target on shares of Wells Fargo & Company from $92.00 to $91.00 and set a "buy" rating on the stock in a research note on Wednesday, July 16th. Finally, Phillip Securities lowered shares of Wells Fargo & Company from a "strong-buy" rating to a "moderate buy" rating in a research note on Thursday, July 17th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and eleven have given a buy rating to the stock. Based on data from MarketBeat, Wells Fargo & Company currently has an average rating of "Moderate Buy" and an average target price of $80.39.

Wells Fargo & Company Profile

Wells Fargo & Co is a diversified and community-based financial services company, which engages in the provision of banking, insurance, investments, mortgage, and consumer and commercial finance products and services. It operates through the following segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management.