Pzena Investment Management LLC Reduces Stock Position in Wells Fargo & Company $WFC

Key Points

• Pzena Investment Management trimmed its Wells Fargo stake by 2.3% in the fourth quarter, but still held nearly 10 million shares worth about $930.2 million. Wells Fargo remained a meaningful position, making up 2.8% of Pzena’s portfolio.
• Wells Fargo reported Q1 earnings of $1.60 per share, slightly beating estimates, and the company announced a quarterly dividend of $0.45 per share payable June 1. The stock also offers an annualized yield of about 2.4%.
• Analyst sentiment remains generally positive, with the stock carrying a Moderate Buy consensus and a target price of $97.53. However, some executives recently sold shares, and Wells Fargo continues to face legal and reputational scrutiny from a discrimination settlement.

Pzena Investment Management LLC lessened its holdings in Wells Fargo & Company (NYSE:WFC) by 2.3% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 9,980,647 shares of the financial services provider's stock after selling 236,732 shares during the quarter. Wells Fargo & Company makes up about 2.8% of Pzena Investment Management LLC's holdings, making the stock its 13th largest position. Pzena Investment Management LLC owned 0.32% of Wells Fargo & Company worth $930,196,000 at the end of the most recent quarter.

Several other large investors have also recently bought and sold shares of the business. Private Wealth Group LLC increased its holdings in Wells Fargo & Company by 2.5% in the fourth quarter. Private Wealth Group LLC now owns 4,514 shares of the financial services provider's stock valued at $421,000 after buying an additional 108 shares during the last quarter. Simmons Bank increased its holdings in Wells Fargo & Company by 1.9% in the fourth quarter. Simmons Bank now owns 6,359 shares of the financial services provider's stock valued at $593,000 after buying an additional 116 shares during the last quarter. Moss Adams Wealth Advisors LLC increased its holdings in Wells Fargo & Company by 1.0% in the fourth quarter. Moss Adams Wealth Advisors LLC now owns 12,048 shares of the financial services provider's stock valued at $1,123,000 after buying an additional 117 shares during the last quarter. Main Street Group LTD increased its holdings in Wells Fargo & Company by 36.9% in the third quarter. Main Street Group LTD now owns 438 shares of the financial services provider's stock valued at $37,000 after buying an additional 118 shares during the last quarter. Finally, D Orazio & Associates Inc. increased its holdings in Wells Fargo & Company by 3.6% in the third quarter. D Orazio & Associates Inc. now owns 3,436 shares of the financial services provider's stock valued at $288,000 after buying an additional 118 shares during the last quarter. Hedge funds and other institutional investors own 75.90% of the company's stock.

Wells Fargo & Company Price Performance

Shares of WFC opened at $75.90 on Friday. Wells Fargo & Company has a fifty-two week low of $71.89 and a fifty-two week high of $97.76. The company has a market capitalization of $232.27 billion, a price-to-earnings ratio of 11.71, a price-to-earnings-growth ratio of 0.89 and a beta of 0.96. The firm has a 50-day simple moving average of $78.92 and a 200-day simple moving average of $85.31. 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 (NYSE:WFC - Get Free Report) last announced its earnings results on Tuesday, April 14th. The financial services provider reported $1.60 earnings per share for the quarter, topping the consensus estimate of $1.58 by $0.02. Wells Fargo & Company had a net margin of 17.26% and a return on equity of 13.27%. The business had revenue of $11.62 billion during the quarter, compared to the consensus estimate of $21.85 billion. During the same quarter in the prior year, the firm earned $1.39 earnings per share. The business's quarterly revenue was up 6.4% compared to the same quarter last year. On average, equities research analysts anticipate that Wells Fargo & Company will post 6.82 earnings per share for the current year.

Wells Fargo & Company Announces Dividend

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

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. Barclays dropped their target price on Wells Fargo & Company from $113.00 to $108.00 and set an "overweight" rating on the stock in a report on Wednesday, April 15th. Robert W. Baird raised Wells Fargo & Company from an "underperform" rating to a "neutral" rating and set a $85.00 target price on the stock in a report on Friday, February 13th. HSBC raised Wells Fargo & Company from a "hold" rating to a "buy" rating and set a $94.00 target price on the stock in a report on Wednesday, April 1st. Truist Financial dropped their target price on Wells Fargo & Company from $98.00 to $94.00 and set a "buy" rating on the stock in a report on Tuesday, March 17th. Finally, UBS Group reaffirmed a "buy" rating and set a $113.00 price objective on shares of Wells Fargo & Company in a report on Wednesday, February 4th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $97.53.

Insider Activity

In other news, EVP Bridget E. Engle sold 30,000 shares of the stock in a transaction dated Thursday, February 26th. The shares were 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 owned 83,478 shares in the company, valued at approximately $7,270,933.80. This represents a 26.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Ellen R. Patterson sold 60,000 shares of the stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $87.40, for a total transaction 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. This trade represents a 26.14% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.14% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Wells Fargo & Company

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

• Positive Sentiment: Analysts highlighted Wells Fargo’s cost-cutting efforts and improving efficiency metrics, saying they could help the bank move closer to its 17%-18% ROTCE target, which supports the long-term earnings story. WFC's Efficiency Story: Will Cost Cuts Lift ROTCE to Its Target Level?
• Positive Sentiment: Wall Street’s read on the $110 million discrimination settlement was constructive, with analysts still favoring the stock and insiders reportedly buying into the news, suggesting the legal issue may be more manageable than feared. Wall Street’s Verdict on Wells Fargo After the $110 Million Discrimination Settlement
• Positive Sentiment: Another market note said Wells Fargo has received an average brokerage recommendation of “Moderate Buy,” reinforcing the idea that sentiment remains favorable despite recent headlines. Wells Fargo & Company NYSE: WFC Given Average Recommendation of "Moderate Buy" by Brokerages
• Neutral Sentiment: Wells Fargo agreed to create a $100 million mortgage assistance fund as part of a discrimination lawsuit settlement, which removes some legal uncertainty but also underscores ongoing reputational and compliance costs. Wells Fargo Settlement Fund Reshapes Legal Overhang And Mortgage Growth Story
• Neutral Sentiment: Wells Fargo also trimmed Meta Platforms’ price target slightly while keeping an Overweight rating, a reminder that the bank’s research franchise remains active but this item is not directly tied to WFC’s own fundamentals. Wells Fargo Trims Meta Platforms Price Target to $765: Why the AI Infrastructure Bet Still Has Believers

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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