Wells Fargo & Company $WFC Shares Bought by Main Street Research LLC

Key Points

• Main Street Research LLC boosted its Wells Fargo stake by 136.2% in the first quarter, ending with 46,882 shares valued at about $3.73 million.
• Wells Fargo reported Q1 earnings of $1.60 per share, slightly beating estimates, while revenue grew 6.4% year over year. Analysts now expect the bank to earn 6.99 EPS for the full fiscal year.
• The company recently paid a quarterly dividend of $0.45 per share, which annualizes to $1.80 and a 2.1% yield; analyst sentiment remains Moderate Buy with an average target price of $98.34.

Main Street Research LLC lifted its stake in Wells Fargo & Company (NYSE:WFC - Free Report) by 136.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 46,882 shares of the financial services provider's stock after buying an additional 27,036 shares during the period. Main Street Research LLC's holdings in Wells Fargo & Company were worth $3,732,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of WFC. Godfrey Financial Associates Inc. purchased a new stake in shares of Wells Fargo & Company during the fourth quarter valued at approximately $25,000. Miller Capital Partners Inc. purchased a new position in shares of Wells Fargo & Company in the fourth quarter valued at $25,000. Navalign LLC purchased a new position in shares of Wells Fargo & Company in the fourth quarter valued at $26,000. Joseph Group Capital Management acquired a new stake in Wells Fargo & Company during the 4th quarter valued at $28,000. Finally, Core Wealth Advisors LLC acquired a new stake in Wells Fargo & Company during the 4th quarter valued at $29,000. 75.90% of the stock is currently owned by hedge funds and other institutional investors.

Wells Fargo & Company Trading Up 1.6%

NYSE WFC opened at $86.91 on Friday. The company has a market capitalization of $265.96 billion, a price-to-earnings ratio of 13.41, a price-to-earnings-growth ratio of 0.98 and a beta of 0.92. The company has a debt-to-equity ratio of 1.12, a current ratio of 0.90 and a quick ratio of 0.90. Wells Fargo & Company has a 12 month low of $72.78 and a 12 month high of $97.76. The company's fifty day moving average price is $80.55 and its two-hundred day moving average price is $84.01.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last released its earnings results on Tuesday, April 14th. The financial services provider reported $1.60 earnings per share for the quarter, topping the consensus estimate of $1.58 by $0.02. The company had revenue of $11.62 billion during the quarter, compared to the consensus estimate of $21.85 billion. Wells Fargo & Company had a net margin of 17.26% and a return on equity of 13.27%. The company's revenue was up 6.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.39 EPS. As a group, research analysts predict that Wells Fargo & Company will post 6.99 earnings per share for the current fiscal year.

Wells Fargo & Company Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Friday, May 8th were paid a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date was Friday, May 8th. Wells Fargo & Company's dividend payout ratio (DPR) is 27.78%.

Key Stories Impacting Wells Fargo & Company

Here are the key news stories impacting Wells Fargo & Company this week:

• Positive Sentiment: Analysts expect Wells Fargo’s Q2 results to benefit from stronger net interest income and fee income, which could support earnings growth when the bank reports next week.
• Positive Sentiment: Recent analyst coverage remains constructive, with Wells Fargo carrying a consensus “moderate buy” rating, helping reinforce investor confidence. Wells Fargo & Company NYSE: WFC Given Consensus Rating of "Moderate Buy" by Analysts
• Neutral Sentiment: Wells Fargo shares also benefited from a broader market uptrend, with the latest trading-session articles noting the stock outperformed the market overall. Wells Fargo (WFC) Beats Stock Market Upswing: What Investors Need to Know
• Neutral Sentiment: Investors are also focused on the company’s Q2 outlook and key operating metrics, but those details are mainly setting expectations rather than changing the near-term story. Unveiling Wells Fargo (WFC) Q2 Outlook: Wall Street Estimates for Key Metrics
• Negative Sentiment: One article highlighted that Wells Fargo’s savings accounts may offer very low yields, which could remind customers to move deposits elsewhere and create a mild reputational headwind. Have Savings at Chase, Wells Fargo, or Bank of America? Why You May Want to Move It

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. UBS Group cut their price objective on shares of Wells Fargo & Company from $105.00 to $104.00 and set a "buy" rating on the stock in a report on Tuesday. Wall Street Zen raised Wells Fargo & Company from a "sell" rating to a "hold" rating in a research report on Sunday, June 14th. HSBC raised Wells Fargo & Company from a "hold" rating to a "buy" rating and set a $94.00 target price on the stock in a research report on Wednesday, April 1st. Jefferies Financial Group began coverage on Wells Fargo & Company in a report on Thursday, March 26th. They issued a "buy" rating and a $100.00 price target for the company. Finally, JPMorgan Chase & Co. raised their price objective on Wells Fargo & Company from $86.50 to $93.50 and gave the company a "neutral" rating in a research note on Monday. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $98.34.

About Wells Fargo & Company

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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