TCW Group Inc. Has $42.10 Million Holdings in Wells Fargo & Company (NYSE:WFC)

Key Points

• TCW Group Inc. increased its stake in Wells Fargo & Company by 10.2% in the first quarter, now owning 586,465 shares valued at approximately $42.1 million.
• Wells Fargo recently reported $1.54 earnings per share, exceeding estimates and showcasing a 0.6% year-over-year revenue increase for the quarter.
• The company approved a $40 billion stock buyback plan, indicating confidence that its shares are currently undervalued.

TCW Group Inc. increased its stake in Wells Fargo & Company (NYSE:WFC - Free Report) by 10.2% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 586,465 shares of the financial services provider's stock after purchasing an additional 54,256 shares during the period. TCW Group Inc.'s holdings in Wells Fargo & Company were worth $42,102,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. Northern Trust Corp boosted its stake in Wells Fargo & Company by 10.7% in the 4th quarter. Northern Trust Corp now owns 34,339,295 shares of the financial services provider's stock worth $2,411,992,000 after purchasing an additional 3,307,855 shares during the period. Dimensional Fund Advisors LP boosted its stake in Wells Fargo & Company by 1.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 20,369,222 shares of the financial services provider's stock worth $1,430,742,000 after purchasing an additional 238,131 shares during the period. Capital Research Global Investors lifted its position in Wells Fargo & Company by 932.0% during the 4th quarter. Capital Research Global Investors now owns 15,734,874 shares of the financial services provider's stock worth $1,105,218,000 after buying an additional 14,210,193 shares in the last quarter. Capital World Investors lifted its position in Wells Fargo & Company by 0.4% during the 4th quarter. Capital World Investors now owns 13,914,098 shares of the financial services provider's stock worth $977,338,000 after buying an additional 62,099 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA lifted its position in Wells Fargo & Company by 277.4% during the 1st quarter. Massachusetts Financial Services Co. MA now owns 10,740,934 shares of the financial services provider's stock worth $771,092,000 after buying an additional 7,894,919 shares in the last quarter. 75.90% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

WFC has been the topic of several analyst reports. Truist Financial boosted their price target on shares of Wells Fargo & Company from $83.00 to $86.00 and gave the stock a "buy" rating in a research report on Wednesday, July 9th. JPMorgan Chase & Co. cut their price target on shares of Wells Fargo & Company from $82.00 to $73.50 and set a "neutral" rating on the stock in a research report on Thursday, April 3rd. Raymond James Financial cut shares of Wells Fargo & Company from a "strong-buy" rating to a "market perform" rating in a research report on Monday, July 7th. Wall Street Zen cut shares of Wells Fargo & Company from a "hold" rating to a "sell" rating in a research report on Saturday. Finally, Piper Sandler reissued an "overweight" rating on shares of Wells Fargo & Company in a research report on Tuesday, July 8th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and eleven have given a buy rating to the company. According to data from MarketBeat, Wells Fargo & Company currently has a consensus rating of "Moderate Buy" and an average target price of $80.39.

Wells Fargo & Company Stock Performance

Wells Fargo & Company stock traded down $1.29 during trading hours on Monday, hitting $83.03. The company had a trading volume of 10,625,988 shares, compared to its average volume of 19,290,604. The firm has a market cap of $270.19 billion, a PE ratio of 14.22, a PEG ratio of 1.31 and a beta of 1.16. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.84 and a quick ratio of 0.83. Wells Fargo & Company has a one year low of $50.15 and a one year high of $84.83. The firm has a 50-day moving average of $78.00 and a 200 day moving average of $74.72.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last announced its earnings results on Tuesday, July 15th. The financial services provider reported $1.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.41 by $0.13. Wells Fargo & Company had a net margin of 16.82% and a return on equity of 12.29%. The firm 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 business posted $1.33 EPS. The business's revenue was up .6% compared to the same quarter last year. On average, sell-side analysts expect that Wells Fargo & Company will post 5.89 earnings per share for the current year.

Wells Fargo & Company declared that its Board of Directors has initiated a share buyback program 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 buy up to 17.2% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Wells Fargo & Company Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Sunday, June 1st. Shareholders of record on Friday, May 9th were given a dividend of $0.40 per share. The ex-dividend date was Friday, May 9th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.93%. Wells Fargo & Company's payout ratio is presently 27.40%.

About Wells Fargo & Company

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.