Sumitomo Life Insurance Co. Invests $3.08 Million in Wells Fargo & Company $WFC

Key Points

• Sumitomo Life Insurance purchased 37,260 Wells Fargo shares worth approximately $3.08 million during the second quarter. Institutional investors collectively own 75.9% of the bank’s stock.
• Wells Fargo exceeded quarterly expectations, reporting $1.96 in EPS and $22.62 billion in revenue, with year-over-year revenue growth of 8.6%.
• The company raised its quarterly dividend from $0.45 to $0.50 per share, equivalent to a $2.00 annualized payout and a 2.4% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $98.61.

Sumitomo Life Insurance Co. bought a new stake in shares of Wells Fargo & Company (NYSE:WFC - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The fund bought 37,260 shares of the financial services provider's stock, valued at approximately $3,079,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in WFC. Norges Bank bought a new position in Wells Fargo & Company during the fourth quarter worth about $4,512,563,000. Capital Research Global Investors grew its stake in shares of Wells Fargo & Company by 4.9% in the 4th quarter. Capital Research Global Investors now owns 37,421,387 shares of the financial services provider's stock valued at $3,487,687,000 after purchasing an additional 1,760,484 shares during the period. Legal & General Group Plc grew its stake in shares of Wells Fargo & Company by 0.9% in the 4th quarter. Legal & General Group Plc now owns 21,197,423 shares of the financial services provider's stock valued at $1,975,600,000 after purchasing an additional 188,186 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Wells Fargo & Company by 13.0% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 20,625,070 shares of the financial services provider's stock worth $1,922,257,000 after buying an additional 2,369,260 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in shares of Wells Fargo & Company in the 2nd quarter worth approximately $1,364,923,000. Institutional investors own 75.90% of the company's stock.

Wells Fargo & Company Stock Performance

NYSE:WFC opened at $84.82 on Wednesday. The stock has a market capitalization of $256.51 billion, a P/E ratio of 12.33, a price-to-earnings-growth ratio of 0.92 and a beta of 0.92. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.09. Wells Fargo & Company has a 1 year low of $72.78 and a 1 year high of $97.76. The firm has a 50 day moving average of $86.11 and a 200-day moving average of $82.79.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last released its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.96 EPS for the quarter, topping analysts' consensus estimates of $1.73 by $0.23. Wells Fargo & Company had a return on equity of 13.85% and a net margin of 17.55%.The business had revenue of $22.62 billion for the quarter, compared to analyst estimates of $21.86 billion. During the same period in the prior year, the company earned $1.60 EPS. Wells Fargo & Company's revenue for the quarter was up 8.6% on a year-over-year basis. As a group, sell-side analysts anticipate that Wells Fargo & Company will post 7.26 EPS for the current fiscal year.

Wells Fargo & Company Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 7th will be paid a $0.50 dividend. This is an increase from Wells Fargo & Company's previous quarterly dividend of $0.45. This represents a $2.00 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Friday, August 7th. Wells Fargo & Company's payout ratio is presently 29.07%.

Analyst Upgrades and Downgrades

Several analysts recently commented on WFC shares. Morgan Stanley boosted their price target on Wells Fargo & Company from $97.00 to $102.00 and gave the company an "equal weight" rating in a research note on Monday, June 29th. Wall Street Zen upgraded Wells Fargo & Company from a "sell" rating to a "hold" rating in a research note on Sunday, June 14th. UBS Group dropped their price objective on Wells Fargo & Company from $105.00 to $104.00 and set a "buy" rating for the company in a research note on Tuesday, July 7th. Bank of America lifted their price objective on Wells Fargo & Company from $95.00 to $102.00 and gave the company a "buy" rating in a report on Tuesday, July 7th. Finally, Raymond James Financial restated a "market perform" rating on shares of Wells Fargo & Company in a research note on Tuesday, July 14th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, Wells Fargo & Company currently has a consensus rating of "Moderate Buy" and an average price target 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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