Primecap Management Co. CA Buys Shares of 6,712,022 Wells Fargo & Company $WFC

Key Points

• Primecap Management acquired 6.71 million Wells Fargo shares worth approximately $554.7 million, giving it a 0.22% stake. Institutional investors collectively own 75.9% of the bank.
• Wells Fargo exceeded quarterly expectations, reporting $1.96 in earnings per share and $22.62 billion in revenue, with revenue up 8.6% year over year. The bank also raised its quarterly dividend to $0.50, equivalent to a 2.4% yield.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $98.61 target price, although commercial real-estate exposure, interest rates, loan growth and credit costs remain key risks.

Primecap Management Co. CA purchased a new position in Wells Fargo & Company (NYSE:WFC) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 6,712,022 shares of the financial services provider's stock, valued at approximately $554,681,000. Primecap Management Co. CA owned 0.22% of Wells Fargo & Company as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors also recently bought and sold shares of the company. Canada Pension Plan Investment Board bought a new position in shares of Wells Fargo & Company in the 2nd quarter worth $480,162,000. Osterweis Capital Management Inc. purchased a new position in Wells Fargo & Company in the second quarter valued at about $147,000. Ategra Capital Management LLC bought a new position in Wells Fargo & Company in the second quarter worth about $11,934,000. Caledonia Private Investments Pty Ltd purchased a new stake in shares of Wells Fargo & Company during the second quarter valued at about $264,000. Finally, Royal Capital Wealth Management LLC bought a new stake in shares of Wells Fargo & Company in the 2nd quarter valued at about $1,089,000. 75.90% of the stock is owned by hedge funds and other institutional investors.

Wells Fargo & Company Stock Performance

Shares of NYSE WFC opened at $85.00 on Friday. The company's fifty day moving average price is $86.19 and its 200 day moving average price is $82.68. Wells Fargo & Company has a 1 year low of $72.78 and a 1 year high of $97.76. The company has a market capitalization of $257.04 billion, a PE ratio of 12.35, a price-to-earnings-growth ratio of 0.93 and a beta of 0.92. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.90 and a current ratio of 0.90.

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, beating analysts' consensus estimates of $1.73 by $0.23. The company had revenue of $22.62 billion during the quarter, compared to analysts' expectations of $21.86 billion. Wells Fargo & Company had a net margin of 17.55% and a return on equity of 13.85%. The firm's revenue for the quarter was up 8.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.60 earnings per share. On average, research analysts predict that Wells Fargo & Company will post 7.26 earnings per share for the current 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 paid a $0.50 dividend. The ex-dividend date is Friday, August 7th. This represents a $2.00 annualized dividend and a dividend yield of 2.4%. This is a boost from Wells Fargo & Company's previous quarterly dividend of $0.45. Wells Fargo & Company's dividend payout ratio (DPR) is presently 29.07%.

Key Headlines Impacting Wells Fargo & Company

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

• Positive Sentiment: Wells Fargo is stepping up efforts to recruit independent financial advisers after a reported $1.5 billion overhaul of its wealth-management business. Expanding the adviser network could increase assets under management, fee revenue and the division’s long-term growth prospects. Wells Fargo Makes New Push to Recruit Wealth Managers
• Positive Sentiment: A comparison with PNC Financial characterized WFC as offering a lower valuation and improving efficiency, supporting the view that the stock may have additional value potential despite PNC’s stronger growth and dividend yield. Wells Fargo vs. PNC Financial: Which Stock Offers Better Upside Now?
• Neutral Sentiment: The bank’s most recent quarterly results provide a supportive backdrop: earnings and revenue exceeded analyst expectations, with revenue rising year over year. However, the stock’s valuation and outlook remain sensitive to interest rates, loan growth and credit costs.
• Negative Sentiment: Wells Fargo is reportedly foreclosing on Workspace Property Trust’s $1.3 billion property portfolio after falling occupancy and asset values increased financial stress. Recovering collateral could limit losses, but the action underscores commercial real-estate exposure and potential pressure on credit quality. Wells Fargo Forecloses On $1.3B Workspace Property Trust Loan

Analysts Set New Price Targets

Several research firms have commented on WFC. Truist Financial upped their price target on shares of Wells Fargo & Company from $90.00 to $94.00 and gave the company a "buy" rating in a report on Friday, June 26th. JPMorgan Chase & Co. lifted their price objective on Wells Fargo & Company from $93.50 to $95.50 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Weiss Ratings reissued a "buy (b)" rating on shares of Wells Fargo & Company in a report on Friday, July 17th. UBS Group lowered their target price on Wells Fargo & Company from $105.00 to $104.00 and set a "buy" rating on the stock in a research note on Tuesday, July 7th. Finally, Morgan Stanley raised their target price on Wells Fargo & Company from $97.00 to $102.00 and gave the stock an "equal weight" rating in a report on Monday, June 29th. Two investment 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. Based on data from MarketBeat.com, Wells Fargo & Company has a consensus rating of "Moderate Buy" and a consensus target price of $98.61.

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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