Wells Fargo & Company $WFC Shares Sold by RWWM Inc.

Key Points

• RWWM Inc. trimmed its Wells Fargo stake by 2.6% in the first quarter, selling 46,534 shares. Even after the sale, Wells Fargo remained RWWM’s third-largest holding at about 10% of its portfolio.
• Wells Fargo reported stronger-than-expected second-quarter results, posting EPS of $2.00 and revenue of $22.62 billion, both above analyst estimates. Revenue rose 8.6% year over year, supported by growth in fee income, wealth management, investment banking, and trading.
• The bank also boosted shareholder returns with an 11% dividend increase and a $3 billion share repurchase. Analysts remain generally constructive, with a consensus rating of “Moderate Buy” and an average price target of $98.34.

RWWM Inc. cut its holdings in shares of Wells Fargo & Company (NYSE:WFC - Free Report) by 2.6% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,721,344 shares of the financial services provider's stock after selling 46,534 shares during the period. Wells Fargo & Company makes up 10.0% of RWWM Inc.'s holdings, making the stock its 3rd biggest holding. RWWM Inc. owned 0.06% of Wells Fargo & Company worth $137,036,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently made changes to their positions in WFC. Diversified Trust Co. boosted its holdings in Wells Fargo & Company by 59.7% during the fourth quarter. Diversified Trust Co. now owns 35,285 shares of the financial services provider's stock worth $3,289,000 after purchasing an additional 13,196 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. increased its stake in Wells Fargo & Company by 19.0% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 532,300 shares of the financial services provider's stock valued at $49,610,000 after buying an additional 84,902 shares during the last quarter. Swiss Life Asset Management Ltd increased its stake in Wells Fargo & Company by 4.2% in the 4th quarter. Swiss Life Asset Management Ltd now owns 350,567 shares of the financial services provider's stock valued at $32,673,000 after buying an additional 14,168 shares during the last quarter. Vanguard Personalized Indexing Management LLC lifted its position in shares of Wells Fargo & Company by 4.4% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 412,511 shares of the financial services provider's stock worth $38,446,000 after buying an additional 17,302 shares in the last quarter. Finally, Achmea Investment Management B.V. lifted its position in shares of Wells Fargo & Company by 12.8% during the 3rd quarter. Achmea Investment Management B.V. now owns 283,582 shares of the financial services provider's stock worth $23,770,000 after buying an additional 32,094 shares in the last quarter. Institutional investors and hedge funds own 75.90% of the company's stock.

Wells Fargo & Company Stock Down 2.2%

Wells Fargo & Company stock opened at $85.73 on Wednesday. Wells Fargo & Company has a twelve month low of $72.78 and a twelve month high of $97.76. The firm has a 50 day moving average price of $80.89 and a 200-day moving average price of $83.85. The company has a market capitalization of $262.35 billion, a P/E ratio of 13.23, a P/E/G ratio of 1.00 and a beta of 0.92. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.12.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last issued its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $2.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.73 by $0.27. The company had revenue of $22.62 billion during the quarter, compared to analyst estimates of $21.86 billion. Wells Fargo & Company had a net margin of 17.26% and a return on equity of 13.27%. Wells Fargo & Company's quarterly revenue was up 8.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.60 EPS. As a group, equities analysts predict that Wells Fargo & Company will post 6.98 EPS for the current year.

Wells Fargo & Company Dividend Announcement

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

Wells Fargo & Company News Summary

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

• Positive Sentiment: Wells Fargo beat Wall Street estimates with second-quarter EPS of about $2.00 and revenue of $22.62 billion, helped by broad-based growth across fee income, wealth management, investment banking, and trading. Wells Fargo Beats Second-Quarter Estimates Amid Broad-Based Revenue Growth
• Positive Sentiment: The bank said profit rose 17%, with higher loan growth boosting interest income and volatile markets supporting trading desks, which points to improving core earnings momentum. Wells Fargo profit jumps on interest income boost, trading windfall
• Positive Sentiment: Management highlighted strength in wealth management and investment banking, including growth in corporate and investment banking revenue and a healthy deal pipeline, which may support future revenue. Wells Fargo Profit Beats Estimates on Wealth, Investment Banking
• Neutral Sentiment: The company also announced an 11% dividend increase and a $3 billion share repurchase, which is supportive for shareholders but largely expected given the strong quarter. Wells Fargo CEO Says America Is Still Spending Big—Even With Inflation Concerns
• Neutral Sentiment: Broader market news and a cooler-than-expected CPI reading also lifted financial stocks overall, providing a supportive backdrop for the sector. June CPI Goes Negative on Low Oil Prices, Banks Report for Q2
• Negative Sentiment: Despite the beat, some articles noted the stock faded as investors worried about higher expenses, margin pressure, and whether strong results would be enough to drive further upside after a run-up. Big Bank Earnings Preview: Bank of America, JPMorgan Stocks Starting to Rally — Will This Laggard Be Next?
• Negative Sentiment: Some commentary framed the reaction as a sell-the-news move across big banks, suggesting investors may be using the earnings release to lock in gains rather than chase the stock higher. Wall Street Lunch: Big Banks Fall Despite Upbeat Earnings

Analyst Ratings Changes

WFC has been the subject of several recent analyst reports. Wall Street Zen raised Wells Fargo & Company from a "sell" rating to a "hold" rating in a report on Sunday, June 14th. HSBC upgraded Wells Fargo & Company from a "hold" rating to a "buy" rating and set a $94.00 price target on the stock in a report on Wednesday, April 1st. UBS Group cut their price objective on Wells Fargo & Company from $105.00 to $104.00 and set a "buy" rating on the stock in a research report on Tuesday, July 7th. KGI Securities downgraded Wells Fargo & Company to a "hold" rating in a research note on Thursday, April 16th. Finally, The Goldman Sachs Group decreased their target price on Wells Fargo & Company from $109.00 to $93.00 and set a "buy" rating for the company in a research report on Monday, March 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $98.34.

Wells Fargo & Company Company Profile

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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