Vanguard Group Inc. Sells 1,125,645 Shares of Wells Fargo & Company (NYSE:WFC)

Key Points

• Vanguard Group Inc. has reduced its stake in Wells Fargo by 0.4%, selling 1,125,645 shares, but still owns approximately 9.24% of the company, valued at about $21.59 billion.
• Wells Fargo reported an EPS of $1.54 for the last quarter, exceeding analyst expectations, and announced plans for a $40 billion stock buyback, indicating confidence in its current share valuation.
• The company has recently increased its quarterly dividend to $0.45 per share, reflecting a positive shift from its previous payout and a current yield of 2.3%.

Vanguard Group Inc. cut its holdings in shares of Wells Fargo & Company (NYSE:WFC) by 0.4% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 300,751,733 shares of the financial services provider's stock after selling 1,125,645 shares during the period. Vanguard Group Inc. owned about 9.24% of Wells Fargo & Company worth $21,590,967,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Safeguard Investment Advisory Group LLC lifted its stake in Wells Fargo & Company by 2.4% during the fourth quarter. Safeguard Investment Advisory Group LLC now owns 5,839 shares of the financial services provider's stock worth $410,000 after purchasing an additional 137 shares during the last quarter. Summit Wealth & Retirement Planning Inc. lifted its stake in Wells Fargo & Company by 4.3% during the first quarter. Summit Wealth & Retirement Planning Inc. now owns 3,362 shares of the financial services provider's stock worth $241,000 after purchasing an additional 139 shares during the last quarter. Nwam LLC lifted its stake in Wells Fargo & Company by 1.6% during the first quarter. Nwam LLC now owns 8,806 shares of the financial services provider's stock worth $632,000 after purchasing an additional 142 shares during the last quarter. Jaffetilchin Investment Partners LLC lifted its stake in Wells Fargo & Company by 0.6% during the fourth quarter. Jaffetilchin Investment Partners LLC now owns 22,501 shares of the financial services provider's stock worth $1,580,000 after purchasing an additional 144 shares during the last quarter. Finally, Zullo Investment Group Inc. increased its holdings in shares of Wells Fargo & Company by 2.4% during the first quarter. Zullo Investment Group Inc. now owns 6,327 shares of the financial services provider's stock worth $454,000 after buying an additional 147 shares in the last quarter. 75.90% of the stock is currently owned by institutional investors.

Wells Fargo & Company Stock Up 0.5%

Shares of Wells Fargo & Company stock opened at $77.95 on Wednesday. Wells Fargo & Company has a one year low of $50.22 and a one year high of $84.83. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.84 and a quick ratio of 0.83. The stock's 50-day moving average is $78.73 and its 200 day moving average is $74.95. The firm has a market cap of $253.66 billion, a price-to-earnings ratio of 13.35, a PEG ratio of 1.21 and a beta of 1.20.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last announced its earnings results on Tuesday, July 15th. The financial services provider reported $1.54 EPS for the quarter, beating the consensus estimate of $1.41 by $0.13. Wells Fargo & Company had a return on equity of 12.29% and a net margin of 16.82%. The company had revenue of $20.82 billion for the quarter, compared to analyst estimates of $20.83 billion. During the same quarter in the prior year, the company earned $1.33 EPS. The firm's revenue for the quarter was up .6% compared to the same quarter last year. Equities research analysts anticipate that Wells Fargo & Company will post 5.89 EPS for the current year.

Wells Fargo & Company announced that its Board of Directors has approved a stock repurchase plan on Tuesday, April 29th that allows the company to buyback $40.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 17.2% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board of directors believes its shares are undervalued.

Wells Fargo & Company Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 1st. Investors of record on Friday, August 8th will be given a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Friday, August 8th. This is a positive change from Wells Fargo & Company's previous quarterly dividend of $0.40. Wells Fargo & Company's dividend payout ratio is currently 27.40%.

Analyst Ratings Changes

Several research analysts have recently issued reports on WFC shares. TD Cowen started coverage on shares of Wells Fargo & Company in a report on Thursday, May 15th. They set a "hold" rating and a $83.00 price target for the company. Piper Sandler reiterated an "overweight" rating on shares of Wells Fargo & Company in a report on Tuesday, July 8th. Dbs Bank upgraded shares of Wells Fargo & Company from a "hold" rating to a "moderate buy" rating in a report on Thursday, July 17th. Cowen reiterated a "hold" rating on shares of Wells Fargo & Company in a report on Wednesday, July 16th. Finally, Citigroup reiterated a "neutral" rating on shares of Wells Fargo & Company in a report on Tuesday, July 8th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and eleven have issued a buy rating to the company's stock. Based on data from MarketBeat.com, Wells Fargo & Company has an average rating of "Moderate Buy" and an average target price of $80.39.

Wells Fargo & Company Profile

Wells Fargo & Co is a diversified and community-based financial services company, which engages in the provision of banking, insurance, investments, mortgage, and consumer and commercial finance products and services. It operates through the following segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management.

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