Banco Santander S.A. Trims Stake in Wells Fargo & Company (NYSE:WFC)

Key Points

• Banco Santander S.A. has reduced its holdings in Wells Fargo & Company by 14.9%, selling 12,124 shares and bringing its total shares to 69,025, worth approximately $4.95 million.
• A recent earnings report showed Wells Fargo & Company beat expectations with an EPS of $1.54, surpassing the consensus estimate of $1.41, while revenue slightly decreased compared to analyst forecasts.
• The firm announced a quarterly dividend increase to $0.45 per share, raising its annualized dividend yield to 2.3%, with a dividend payout ratio of 27.40%.

Banco Santander S.A. lowered its holdings in Wells Fargo & Company (NYSE:WFC - Free Report) by 14.9% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 69,025 shares of the financial services provider's stock after selling 12,124 shares during the period. Banco Santander S.A.'s holdings in Wells Fargo & Company were worth $4,955,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of WFC. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund raised its stake in Wells Fargo & Company by 1,127.8% in the first quarter. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund now owns 108,045 shares of the financial services provider's stock valued at $7,757,000 after purchasing an additional 99,245 shares in the last quarter. Powszechne Towarzystwo Emerytalne Allianz Polska S.A. purchased a new stake in shares of Wells Fargo & Company during the 1st quarter valued at $19,383,000. SPC Financial Inc. raised its position in shares of Wells Fargo & Company by 2.5% during the 1st quarter. SPC Financial Inc. now owns 6,250 shares of the financial services provider's stock valued at $449,000 after buying an additional 151 shares in the last quarter. TIAA Trust National Association raised its position in shares of Wells Fargo & Company by 32.2% during the 1st quarter. TIAA Trust National Association now owns 413,476 shares of the financial services provider's stock valued at $29,683,000 after buying an additional 100,726 shares in the last quarter. Finally, Baker Avenue Asset Management LP raised its position in Wells Fargo & Company by 4.1% during the first quarter. Baker Avenue Asset Management LP now owns 29,820 shares of the financial services provider's stock valued at $2,141,000 after purchasing an additional 1,167 shares in the last quarter. Hedge funds and other institutional investors own 75.90% of the company's stock.

Wells Fargo & Company Trading Down 1.5%

Shares of WFC stock traded down $1.15 during mid-day trading on Tuesday, reaching $76.43. The stock had a trading volume of 2,031,534 shares, compared to its average volume of 17,462,965. The stock's 50-day moving average price is $78.65 and its two-hundred day moving average price is $74.93. Wells Fargo & Company has a 52-week low of $50.22 and a 52-week high of $84.83. The firm has a market capitalization of $248.73 billion, a PE ratio of 13.05, a price-to-earnings-growth ratio of 1.21 and a beta of 1.20. The company has a current ratio of 0.84, a quick ratio of 0.83 and a debt-to-equity ratio of 1.06.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last announced its quarterly earnings results on Tuesday, July 15th. The financial services provider reported $1.54 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 the consensus estimate of $20.83 billion. During the same quarter in the previous year, the business earned $1.33 EPS. Wells Fargo & Company's revenue was up .6% compared to the same quarter last year. Equities analysts expect that Wells Fargo & Company will post 5.89 earnings per share for the current fiscal year.

Wells Fargo & Company Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 1st. Stockholders of record on Friday, August 8th will be paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 2.4%. This is a boost from Wells Fargo & Company's previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Friday, August 8th. Wells Fargo & Company's payout ratio is presently 30.82%.

Wells Fargo & Company declared that its Board of Directors has initiated a share buyback plan on Tuesday, April 29th that authorizes the company to buyback $40.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 17.2% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Wall Street Zen downgraded Wells Fargo & Company from a "hold" rating to a "sell" rating in a research report on Saturday, July 26th. Piper Sandler reissued an "overweight" rating on shares of Wells Fargo & Company in a report on Tuesday, July 8th. Citigroup reissued a "neutral" rating on shares of Wells Fargo & Company in a report on Tuesday, July 8th. Morgan Stanley lifted their price target on shares of Wells Fargo & Company from $77.00 to $87.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 4th. Finally, Truist Financial lifted 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 note on Wednesday, July 9th. One equities research analyst has rated the stock with a sell rating, eight have issued 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 a consensus rating of "Moderate Buy" and a consensus 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.