River Road Asset Management LLC Cuts Stake in Wells Fargo & Company $WFC

Key Points

• River Road Asset Management reduced its Wells Fargo stake by 2.3% in the second quarter, selling 16,200 shares and retaining 693,210 shares valued at approximately $57.3 million. Institutional investors collectively own 75.9% of WFC.
• Wells Fargo reported stronger-than-expected quarterly results, with EPS of $1.96 and revenue of $22.62 billion; revenue increased 8.6% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $98.61.
• The bank increased its quarterly dividend from $0.45 to $0.50 per share, equivalent to $2.00 annually and a 2.3% yield. Shares recently traded at $88.74, within a 52-week range of $72.78 to $97.76.

River Road Asset Management LLC cut its stake in shares of Wells Fargo & Company (NYSE:WFC - Free Report) by 2.3% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 693,210 shares of the financial services provider's stock after selling 16,200 shares during the quarter. River Road Asset Management LLC's holdings in Wells Fargo & Company were worth $57,287,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of WFC. Godfrey Financial Associates Inc. purchased a new stake in Wells Fargo & Company during the 4th quarter valued at about $25,000. Miller Capital Partners Inc. bought a new stake in Wells Fargo & Company during the 4th quarter valued at about $25,000. Navalign LLC purchased a new position in Wells Fargo & Company in the fourth quarter worth about $26,000. Joseph Group Capital Management purchased a new position in Wells Fargo & Company in the fourth quarter worth about $28,000. Finally, Phillip James Consulting Co. bought a new position in shares of Wells Fargo & Company in the first quarter worth approximately $28,000. Hedge funds and other institutional investors own 75.90% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on WFC shares. Wall Street Zen upgraded shares of Wells Fargo & Company from a "sell" rating to a "hold" rating in a report on Sunday, June 14th. Weiss Ratings restated a "buy (b)" rating on shares of Wells Fargo & Company in a report on Friday, July 17th. UBS Group lowered their price objective on Wells Fargo & Company from $105.00 to $104.00 and set a "buy" rating on the stock in a research report on Tuesday, July 7th. Phillip Securities upgraded Wells Fargo & Company from a "moderate buy" rating to a "strong-buy" rating in a research note on Thursday, May 7th. Finally, Morgan Stanley lifted 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 assigned a Hold rating to the stock. According to MarketBeat.com, Wells Fargo & Company has a consensus rating of "Moderate Buy" and an average target price of $98.61.

Wells Fargo & Company Stock Performance

Shares of WFC stock opened at $88.74 on Friday. The company has a 50 day moving average price of $85.73 and a 200-day moving average price of $83.10. Wells Fargo & Company has a 52 week low of $72.78 and a 52 week high of $97.76. The firm has a market capitalization of $268.34 billion, a PE ratio of 12.90, a P/E/G ratio of 0.97 and a beta of 0.92. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.09.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last issued 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 for the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.60 earnings per share. As a group, equities research analysts expect that Wells Fargo & Company will post 7.26 earnings per share for the current year.

Wells Fargo & Company Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 7th will be paid a dividend of $0.50 per share. The ex-dividend date is Friday, August 7th. This represents a $2.00 dividend on an annualized basis and a yield of 2.3%. 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 Stories Impacting Wells Fargo & Company

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

• Positive Sentiment: Wells Fargo declared quarterly cash dividends on six series of preferred stock. The announcement provides clarity for income-focused investors and signals that the bank continues to support its preferred-capital structure. Wells Fargo & Company Declares Cash Dividends on Preferred Stock
• Positive Sentiment: Recent analysis suggests WFC could be about 10% undervalued despite strong gains over the past three months, supporting the view that valuation may still leave room for additional appreciation. Wells Fargo Could Be 10% Undervalued After Preferred Dividend Declaration
• Positive Sentiment: Investors have been rotating from weaker-performing artificial-intelligence stocks into financials, creating a favorable sector backdrop for Wells Fargo and other banks. Risk-On Momentum in Bank Stocks Echoes Aftermath of Dot-Com Bust
• Positive Sentiment: Wells Fargo’s latest earnings exceeded expectations, with $1.96 in earnings per share and $22.62 billion in revenue, while revenue grew 8.6% year over year. Analysts continue to focus on potential net-interest-income growth, asset-cap removal and increased capital returns. WFC Stock Gains 20.5% in 3 Months: Buy, Hold or Sell the Stock Now?
• Neutral Sentiment: The bank is expanding its post-asset-cap strategy through tokenized deposits for corporate clients and new long-term debt and depositary-share offerings. The initiatives could improve payment capabilities and investment capacity, but their financial impact remains uncertain. Is Wells Fargo’s Tokenized Deposit Push Reshaping Its Post-Cap Investment Story?
• Negative Sentiment: After a roughly 20% three-month advance, valuation and profit-taking risks could limit near-term upside, making investors more sensitive to execution on growth and regulatory milestones. Why Is Wells Fargo Up Since Last Earnings Report?

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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