Resona Asset Management Co. Ltd. Decreases Stock Holdings in Wells Fargo & Company $WFC

Key Points

• Resona Asset Management trimmed its Wells Fargo stake by 4.7% in the fourth quarter, selling 47,859 shares and leaving it with 976,913 shares valued at about $91.3 million.
• Wall Street remains broadly constructive on Wells Fargo: analysts have a consensus “Moderate Buy” rating and an average target price of $97.53, though several firms recently cut their price targets.
• Wells Fargo reported Q1 EPS of $1.60, slightly ahead of expectations, and announced a quarterly dividend of $0.45 per share, equal to a 2.4% annualized yield.

Resona Asset Management Co. Ltd. reduced its holdings in shares of Wells Fargo & Company (NYSE:WFC) by 4.7% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 976,913 shares of the financial services provider's stock after selling 47,859 shares during the quarter. Resona Asset Management Co. Ltd.'s holdings in Wells Fargo & Company were worth $91,273,000 at the end of the most recent quarter.

Other institutional investors also recently bought and sold shares of the company. Navalign LLC purchased a new stake in Wells Fargo & Company during the fourth quarter worth approximately $26,000. Redmont Wealth Advisors LLC purchased a new position in shares of Wells Fargo & Company in the third quarter valued at $27,000. Joseph Group Capital Management purchased a new position in shares of Wells Fargo & Company in the fourth quarter valued at $28,000. Grey Fox Wealth Advisors LLC purchased a new position in shares of Wells Fargo & Company in the third quarter valued at $30,000. Finally, Imprint Wealth LLC purchased a new position in shares of Wells Fargo & Company in the third quarter valued at $31,000. 75.90% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Barclays decreased their target price on shares of Wells Fargo & Company from $113.00 to $108.00 and set an "overweight" rating for the company in a research note on Wednesday, April 15th. Weiss Ratings restated a "buy (b)" rating on shares of Wells Fargo & Company in a research note on Monday, April 20th. UBS Group restated a "buy" rating and issued a $113.00 target price on shares of Wells Fargo & Company in a research note on Wednesday, February 4th. Truist Financial decreased their target price on shares of Wells Fargo & Company from $98.00 to $94.00 and set a "buy" rating for the company in a research note on Tuesday, March 17th. Finally, Morgan Stanley decreased their target price on shares of Wells Fargo & Company from $108.00 to $100.00 and set an "equal weight" rating for the company in a research note on Tuesday, March 31st. Two equities research 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's stock. Based on data from MarketBeat, Wells Fargo & Company has an average rating of "Moderate Buy" and a consensus target price of $97.53.

Trending Headlines about Wells Fargo & Company

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

• Positive Sentiment: The NAHB/Wells Fargo Housing Market Index unexpectedly rose to 37 in May, signaling a modest rebound in homebuilder confidence and supporting a more constructive outlook for mortgage and housing-related banking activity. U.S. Homebuilder Confidence Unexpectedly Rebounds In May
• Positive Sentiment: Wells Fargo and Lazard moved up league tables on NextEra Energy’s $67 billion acquisition of Dominion Energy, highlighting stronger investment-banking deal activity that could support fee income. Lazard, Wells Fargo Vault Up League Tables on NextEra-Dominion Deal
• Neutral Sentiment: Wells Fargo settled a lawsuit alleging hiring and lending discrimination for $110 million, including a $100 million fund for eligible borrowers in certain low- and moderate-income areas. The agreement removes uncertainty, but it also underscores continued legal and reputational risk. Wells Fargo settles lawsuit alleging hiring, lending discrimination
• Neutral Sentiment: Bloomberg Law reported that Wells Fargo’s $110 million discrimination settlement was approved, confirming the charge but reducing litigation uncertainty going forward. Wells Fargo’s $110 Million Discrimination Settlement is Approved
• Neutral Sentiment: News about Wells Fargo’s call on Disney is not directly material to WFC’s earnings outlook, though it reflects ongoing research activity from the bank’s analysts. Disney (DIS) Still Has Significant Upside Potential, Says Wells Fargo
• Negative Sentiment: Earlier market coverage noted Wells Fargo extending losses alongside Bank of America in a weak broader financials tape, suggesting some sector pressure may still be weighing on the shares. Bank of America, Wells Fargo extend losses; Japanese firms in gainers: week's financials wrap

Wells Fargo & Company Trading Up 1.3%

WFC opened at $74.37 on Tuesday. The stock has a market capitalization of $227.59 billion, a PE ratio of 11.48, a P/E/G ratio of 0.86 and a beta of 0.96. The firm's fifty day moving average price is $79.15 and its 200 day moving average price is $85.54. The company has a debt-to-equity ratio of 1.12, a current ratio of 0.90 and a quick ratio of 0.90. Wells Fargo & Company has a 12-month low of $71.89 and a 12-month high of $97.76.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last posted its quarterly earnings results on Tuesday, April 14th. The financial services provider reported $1.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.58 by $0.02. The firm had revenue of $11.62 billion for the quarter, compared to analysts' expectations 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 period in the prior year, the company posted $1.39 earnings per share. As a group, research analysts expect that Wells Fargo & Company will post 6.82 EPS for the current fiscal year.

Wells Fargo & Company Announces Dividend

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

Insider Activity at Wells Fargo & Company

In related news, EVP Ellen R. Patterson sold 60,000 shares of the company's stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $87.40, for a total value of $5,244,000.00. Following the sale, the executive vice president directly owned 169,496 shares of the company's stock, valued at $14,813,950.40. This represents a 26.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Kleber Santos sold 25,000 shares of the company's stock in a transaction on Friday, February 20th. The shares were sold at an average price of $87.72, for a total transaction of $2,193,000.00. Following the completion of the sale, the executive vice president directly owned 79,876 shares in the company, valued at $7,006,722.72. This represents a 23.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 115,000 shares of company stock valued at $10,050,000 over the last ninety days. Corporate insiders own 0.14% of the company's stock.

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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