Wells Fargo & Company (NYSE:WFC) Rating Increased to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Wells Fargo from sell to hold, adding to a mixed analyst picture that still leans positive overall. The stock now has a consensus rating of Moderate Buy with an average price target of $97.53.
• Wells Fargo reported Q1 EPS of $1.60, edging past the $1.58 estimate, while revenue came in at $11.62 billion versus much higher analyst expectations. The company also posted 13.27% return on equity and 17.26% net margin.
• Recent insider activity has been negative, with executives Kleber Santos and Ellen R. Patterson selling shares worth a combined $7.4 million+ in February. At the same time, institutional ownership remains high at 75.9% of the stock.

Wells Fargo & Company (NYSE:WFC) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a note issued to investors on Saturday.

A number of other brokerages have also issued reports on WFC. The Goldman Sachs Group reduced their target price on Wells Fargo & Company from $109.00 to $93.00 and set a "buy" rating for the company in a research note on Monday, March 23rd. KGI Securities lowered Wells Fargo & Company to a "hold" rating in a research note on Thursday, April 16th. Morgan Stanley reduced their target price on Wells Fargo & Company from $108.00 to $100.00 and set an "equal weight" rating for the company in a research note on Tuesday, March 31st. Robert W. Baird upgraded Wells Fargo & Company from an "underperform" rating to a "neutral" rating and set a $85.00 target price for the company in a research note on Friday, February 13th. Finally, Truist Financial reduced their target price on Wells Fargo & Company from $98.00 to $94.00 and set a "buy" rating for the company in a research note on Tuesday, March 17th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $97.53.

Wells Fargo & Company Stock Performance

Shares of WFC opened at $73.46 on Friday. Wells Fargo & Company has a 12 month low of $71.89 and a 12 month high of $97.76. The stock has a fifty day moving average price of $79.30 and a 200-day moving average price of $85.64. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.12. The firm has a market cap of $224.79 billion, a PE ratio of 11.34, a P/E/G ratio of 0.87 and a beta of 0.96.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last issued its quarterly earnings data on Tuesday, April 14th. The financial services provider reported $1.60 EPS for the quarter, beating the consensus estimate of $1.58 by $0.02. Wells Fargo & Company had a return on equity of 13.27% and a net margin of 17.26%.The firm had revenue of $11.62 billion during the quarter, compared to analyst estimates of $21.85 billion. During the same quarter in the prior year, the business posted $1.39 EPS. The business's revenue for the quarter was up 6.4% compared to the same quarter last year. Equities research analysts predict that Wells Fargo & Company will post 6.82 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Wells Fargo & Company news, EVP Kleber Santos sold 25,000 shares of the stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $87.72, for a total transaction of $2,193,000.00. Following the sale, the executive vice president directly owned 79,876 shares of the company's stock, valued at approximately $7,006,722.72. This trade represents a 23.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Ellen R. Patterson sold 60,000 shares of the stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $87.40, for a total value of $5,244,000.00. Following the sale, the executive vice president directly owned 169,496 shares in the company, valued at $14,813,950.40. This represents a 26.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 115,000 shares of company stock valued at $10,050,000. Company insiders own 0.14% of the company's stock.

Institutional Investors Weigh In On Wells Fargo & Company

Several hedge funds and other institutional investors have recently added to or reduced their stakes in WFC. Norges Bank acquired a new stake in Wells Fargo & Company during the 4th quarter worth about $4,512,563,000. Capital Research Global Investors increased its stake in shares of Wells Fargo & Company by 18.6% in the 3rd quarter. Capital Research Global Investors now owns 35,660,903 shares of the financial services provider's stock valued at $2,989,104,000 after purchasing an additional 5,584,930 shares in the last quarter. Mawer Investment Management Ltd. increased its stake in shares of Wells Fargo & Company by 177.7% in the 4th quarter. Mawer Investment Management Ltd. now owns 4,876,127 shares of the financial services provider's stock valued at $454,455,000 after purchasing an additional 3,120,399 shares in the last quarter. Danske Bank A S purchased a new position in shares of Wells Fargo & Company in the 3rd quarter valued at about $215,638,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Wells Fargo & Company by 13.0% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 20,625,070 shares of the financial services provider's stock valued at $1,922,257,000 after purchasing an additional 2,369,260 shares in the last quarter. 75.90% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Wells Fargo & Company

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

• Negative Sentiment: JPMorgan reiterated a Hold rating on Wells Fargo and cut its price target to $86.50 from $91, reinforcing a more cautious near-term outlook for the stock. Wells Fargo (WFC) Stock Expected To Stay Under Pressure In The Short Term
• Neutral Sentiment: Wells Fargo announced cash dividends on six series of preferred stock, a routine capital return update that should not materially change the near-term outlook for common shares. Wells Fargo & Company Declares Cash Dividends on Preferred Stock
• Neutral Sentiment: Commentary around Wells Fargo’s post-earnings performance noted that the stock remains below its recent levels after the company’s latest results, with investors still assessing whether revenue growth can offset higher compensation and technology costs. Wells Fargo Revenues Are Rising, But Can It Bend the Cost Curve?
• Neutral Sentiment: Wells Fargo’s economists changed their view on the timing of the next Fed rate cut, highlighting uncertainty around inflation and interest-rate expectations that could influence bank earnings and net interest income. Wells Fargo sees writing on the wall about the next Fed rate cut
• Negative Sentiment: Broader financial stocks weakened in the latest session, which may be adding pressure to Wells Fargo as part of a sector-wide move lower. Sector Update: Financial Stocks Fall Wednesday

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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