Royal Bank of Canada Reduces Stock Holdings in WEX Inc. $WEX

Key Points

• Royal Bank of Canada cut its WEX stake by 56.6% in the first quarter, selling 19,691 shares and retaining 15,107 shares valued at approximately $2.31 million. Institutional investors collectively own 97.47% of WEX.
• WEX exceeded quarterly expectations, reporting $5.35 in EPS versus the $5.08 consensus and revenue of $753.5 million, up 14.2% year over year. Analysts maintain a consensus “Hold” rating with an average price target of $183.30.
• The company authorized a $1 billion share-repurchase program, allowing it to buy back up to 21.2% of outstanding shares. Meanwhile, insiders sold 9,858 shares worth about $1.66 million over the past 90 days.

Royal Bank of Canada lowered its stake in shares of WEX Inc. (NYSE:WEX - Free Report) by 56.6% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 15,107 shares of the business services provider's stock after selling 19,691 shares during the quarter. Royal Bank of Canada's holdings in WEX were worth $2,311,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also modified their holdings of the company. American Century Companies Inc. grew its position in shares of WEX by 1.9% in the 2nd quarter. American Century Companies Inc. now owns 3,205 shares of the business services provider's stock valued at $471,000 after buying an additional 60 shares during the last quarter. First Horizon Corp lifted its position in WEX by 65.7% in the fourth quarter. First Horizon Corp now owns 237 shares of the business services provider's stock valued at $35,000 after acquiring an additional 94 shares during the last quarter. Eukles Asset Management lifted its position in WEX by 2.8% in the fourth quarter. Eukles Asset Management now owns 3,429 shares of the business services provider's stock valued at $511,000 after acquiring an additional 95 shares during the last quarter. Nicolet Advisory Services LLC boosted its stake in WEX by 8.1% in the third quarter. Nicolet Advisory Services LLC now owns 1,362 shares of the business services provider's stock valued at $214,000 after acquiring an additional 102 shares in the last quarter. Finally, Public Employees Retirement System of Ohio boosted its stake in WEX by 0.9% in the third quarter. Public Employees Retirement System of Ohio now owns 11,095 shares of the business services provider's stock valued at $1,748,000 after acquiring an additional 104 shares in the last quarter. Hedge funds and other institutional investors own 97.47% of the company's stock.

Insider Buying and Selling

In related news, COO Robert Joseph Deshaies sold 2,000 shares of the stock in a transaction on Monday, July 6th. The stock was sold at an average price of $148.40, for a total transaction of $296,800.00. Following the completion of the sale, the chief operating officer directly owned 20,288 shares of the company's stock, valued at $3,010,739.20. This trade represents a 8.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Carlos Carriedo sold 1,075 shares of WEX stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $186.00, for a total transaction of $199,950.00. Following the completion of the transaction, the chief operating officer owned 11,076 shares in the company, valued at approximately $2,060,136. This trade represents a 8.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 9,858 shares of company stock worth $1,662,835. 1.40% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of research firms have recently commented on WEX. Loop Capital assumed coverage on WEX in a research report on Monday, April 27th. They set a "buy" rating and a $195.00 target price on the stock. Mizuho upped their target price on WEX from $170.00 to $200.00 and gave the company an "outperform" rating in a research report on Friday, July 24th. Cantor Fitzgerald set a $178.00 price target on WEX in a research note on Monday, July 27th. Robert W. Baird lifted their price target on WEX from $210.00 to $220.00 and gave the stock an "outperform" rating in a research report on Thursday, April 23rd. Finally, Weiss Ratings upgraded WEX from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, August 7th. Six analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, WEX presently has a consensus rating of "Hold" and a consensus target price of $183.30.

WEX Price Performance

Shares of NYSE:WEX opened at $188.83 on Tuesday. WEX Inc. has a one year low of $125.29 and a one year high of $199.69. The stock has a market capitalization of $6.44 billion, a price-to-earnings ratio of 18.81, a PEG ratio of 1.00 and a beta of 0.82. The company has a 50-day simple moving average of $159.70 and a 200-day simple moving average of $156.12. The company has a debt-to-equity ratio of 2.62, a quick ratio of 1.04 and a current ratio of 1.04.

WEX (NYSE:WEX - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The business services provider reported $5.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.08 by $0.27. The firm had revenue of $753.50 million for the quarter, compared to analysts' expectations of $740.72 million. WEX had a return on equity of 43.19% and a net margin of 12.56%.The firm's revenue for the quarter was up 14.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.95 EPS. WEX has set its Q3 2026 guidance at 5.450-5.650 EPS and its FY 2026 guidance at 19.680-20.080 EPS. On average, analysts predict that WEX Inc. will post 17.11 EPS for the current year.

WEX declared that its Board of Directors has approved a share buyback program on Thursday, May 14th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the business services provider to buy up to 21.2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board believes its shares are undervalued.

About WEX

WEX Inc is a global financial technology company specializing in business payment solutions for fleet, travel, and corporate payments. The company delivers software-driven platforms and card-based services that help businesses automate payment processes, manage expenses and improve operational efficiency across a range of industries, including transportation, healthcare and government.

Founded in 1983 as Wright Express in Portland, Maine, the company began by offering fuel card services to trucking fleets.

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