Wells Fargo & Company (NYSE:WFC) Price Target Lowered to $94.00 at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods lowered its price target on Wells Fargo from $98 to $94 while keeping a “market perform” rating, implying about 9.65% upside from the prior close.
• Wells Fargo’s latest quarterly results beat expectations, with EPS of $2.00 versus the $1.73 estimate and revenue of $22.62 billion topping forecasts. Revenue rose 8.6% from a year earlier, helped by higher interest income and fee income.
• The stock continues to draw mixed analyst views: the average rating is Moderate Buy with an average price target of $98.13, while the company also plans to raise its Q3 common stock dividend by 11% to $0.50.

Wells Fargo & Company (NYSE:WFC) had its target price decreased by equities research analysts at Keefe, Bruyette & Woods from $98.00 to $94.00 in a research note issued on Wednesday,Benzinga reports. The brokerage presently has a "market perform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price objective points to a potential upside of 9.65% from the company's previous close.

WFC has been the subject of a number of other research reports. Barclays decreased their price target on shares of Wells Fargo & Company from $113.00 to $108.00 and set an "overweight" rating for the company in a report on Wednesday, April 15th. Truist Financial lifted their price target on Wells Fargo & Company from $90.00 to $94.00 and gave the stock a "buy" rating in a research report on Friday, June 26th. Piper Sandler restated an "overweight" rating and issued a $94.00 price objective (down from $100.00) on shares of Wells Fargo & Company in a research note on Wednesday, April 15th. Wall Street Zen raised Wells Fargo & Company from a "sell" rating to a "hold" rating in a report on Sunday, June 14th. Finally, KGI Securities lowered Wells Fargo & Company to a "hold" rating in a research report on Thursday, April 16th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $98.13.

Wells Fargo & Company Price Performance

Shares of NYSE WFC opened at $85.73 on Wednesday. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.90 and a current ratio of 0.90. The company has a market cap of $262.35 billion, a PE ratio of 13.23, a P/E/G ratio of 1.00 and a beta of 0.92. The business has a 50-day simple moving average of $80.89 and a two-hundred day simple moving average of $83.85. Wells Fargo & Company has a fifty-two week low of $72.78 and a fifty-two week high of $97.76.

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

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Brighton Jones LLC increased its holdings in Wells Fargo & Company by 62.3% in the fourth quarter. Brighton Jones LLC now owns 66,233 shares of the financial services provider's stock valued at $4,652,000 after buying an additional 25,436 shares in the last quarter. Jump Financial LLC grew its position in shares of Wells Fargo & Company by 12.9% during the 2nd quarter. Jump Financial LLC now owns 22,904 shares of the financial services provider's stock valued at $1,835,000 after acquiring an additional 2,615 shares during the period. Main Street Financial Solutions LLC increased its stake in shares of Wells Fargo & Company by 111.0% in the 2nd quarter. Main Street Financial Solutions LLC now owns 14,008 shares of the financial services provider's stock valued at $1,122,000 after purchasing an additional 7,368 shares in the last quarter. Vivaldi Capital Management LP increased its stake in shares of Wells Fargo & Company by 5.4% in the 2nd quarter. Vivaldi Capital Management LP now owns 3,229 shares of the financial services provider's stock valued at $259,000 after purchasing an additional 165 shares in the last quarter. Finally, Diversify Advisory Services LLC raised its holdings in Wells Fargo & Company by 51.2% in the 2nd quarter. Diversify Advisory Services LLC now owns 25,718 shares of the financial services provider's stock worth $2,044,000 after purchasing an additional 8,714 shares during the period. 75.90% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Wells Fargo & Company

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

• Positive Sentiment: Wells Fargo reported second-quarter EPS and revenue above estimates, helped by higher interest income, fee income, and lower credit provisions. Wells Fargo profit jumps on interest income boost, trading windfall
• Positive Sentiment: The company intends to hike its Q3 common stock dividend by 11% to $0.50, signaling confidence in capital strength and cash generation. Wells Fargo intends to hike Q3 common stock dividend by 11% to $0.50
• Positive Sentiment: Bank of America Securities reiterated a Buy rating and $102 price target, citing re-rating potential for Wells Fargo shares. Wells Fargo: Buy Rating Reiterated as Analyst Sees Re-Rating Potential and Keeps $102 Price Target Unchanged
• Neutral Sentiment: Wells Fargo and other major banks are exploring ways to work around debit swipe fee caps, a regulatory issue that could affect future revenue, but the impact is still uncertain. JPMorgan, Wells Fargo and other big banks explore how to sidestep debit swipe fee caps

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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