Wells Fargo & Company $WFC is Dodge & Cox's 8th Largest Position

Key Points

• Dodge & Cox reduced its stake in Wells Fargo by 18.2% in Q1, selling 12.8 million shares, leaving them with 57.6 million shares that comprise about 2.4% of their portfolio.
• Wells Fargo recently reported an EPS of $1.54 for the quarter, exceeding analysts' estimates of $1.41, and had a revenue of $20.82 billion, slightly below the expected $20.83 billion.
• The company announced a quarterly dividend increase from $0.40 to $0.45 per share, with a payout ratio of 30.82% and an annual yield of 2.3%.

Dodge & Cox trimmed its position in shares of Wells Fargo & Company (NYSE:WFC - Free Report) by 18.2% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 57,628,115 shares of the financial services provider's stock after selling 12,824,735 shares during the quarter. Wells Fargo & Company comprises about 2.4% of Dodge & Cox's investment portfolio, making the stock its 8th largest holding. Dodge & Cox owned approximately 1.77% of Wells Fargo & Company worth $4,137,122,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of WFC. BNP Paribas purchased a new stake in shares of Wells Fargo & Company during the fourth quarter valued at about $28,000. Motco grew its stake in shares of Wells Fargo & Company by 397.6% during the first quarter. Motco now owns 408 shares of the financial services provider's stock worth $29,000 after acquiring an additional 326 shares during the last quarter. Accent Capital Management LLC purchased a new stake in shares of Wells Fargo & Company during the first quarter worth about $29,000. Parvin Asset Management LLC purchased a new stake in shares of Wells Fargo & Company during the fourth quarter worth about $32,000. Finally, Stone House Investment Management LLC purchased a new stake in shares of Wells Fargo & Company during the first quarter worth about $34,000. 75.90% of the stock is owned by hedge funds and other institutional investors.

Wells Fargo & Company Stock Performance

Shares of Wells Fargo & Company stock traded up $1.2380 on Friday, reaching $79.0680. 11,281,046 shares of the stock were exchanged, compared to its average volume of 13,475,062. The company has a quick ratio of 0.83, a current ratio of 0.84 and a debt-to-equity ratio of 1.06. Wells Fargo & Company has a twelve month low of $50.22 and a twelve month high of $84.83. The firm has a market capitalization of $253.29 billion, a price-to-earnings ratio of 13.54, a PEG ratio of 1.23 and a beta of 1.20. The business has a 50 day moving average price of $79.55 and a two-hundred day moving average price of $74.88.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last released its earnings results on Tuesday, July 15th. The financial services provider reported $1.54 EPS for the quarter, topping 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 firm had revenue of $20.82 billion during the quarter, compared to the consensus estimate of $20.83 billion. During the same quarter in the previous year, the company posted $1.33 earnings per share. The company's revenue was up .6% compared to the same quarter last year. Analysts anticipate that Wells Fargo & Company will post 5.89 earnings per share for the current fiscal year.

Wells Fargo & Company Increases Dividend

The business also recently declared 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 is an increase from Wells Fargo & Company's previous quarterly dividend of $0.40. This represents a $1.80 annualized dividend and a yield of 2.3%. The ex-dividend date is Friday, August 8th. Wells Fargo & Company's dividend payout ratio (DPR) is 30.82%.

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

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Citigroup restated a "neutral" rating on shares of Wells Fargo & Company in a research note on Tuesday, July 8th. Raymond James Financial lowered shares of Wells Fargo & Company from a "strong-buy" rating to a "market perform" rating in a research note on Monday, July 7th. Dbs Bank upgraded shares of Wells Fargo & Company from a "hold" rating to a "moderate buy" rating in a research note on Thursday, July 17th. Truist Financial upped their price target on shares of Wells Fargo & Company from $83.00 to $86.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Finally, The Goldman Sachs Group cut their price target on shares of Wells Fargo & Company from $92.00 to $91.00 and set a "buy" rating on the stock in a research note on Wednesday, July 16th. Eleven research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $81.58.

Wells Fargo & Company 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.