Wells Fargo & Company (NYSE:WFC) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Wells Fargo has a consensus analyst rating of “Moderate Buy” from 26 brokerages, with an average 12-month price target of about $97.53.
• The stock was trading around $74.55, and the company recently reported Q1 EPS of $1.60, slightly ahead of estimates, while revenue rose 6.4% year over year.
• Wells Fargo also announced a quarterly dividend of $0.45 per share, equal to an annualized yield of about 2.4%; however, the company is facing some headwinds, including a $110 million discrimination settlement.

Wells Fargo & Company (NYSE:WFC) has been given a consensus rating of "Moderate Buy" by the twenty-six brokerages that are covering the company, MarketBeat.com reports. Ten research analysts have rated the stock with a hold recommendation, fourteen have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $97.5250.

A number of research firms have recently commented on WFC. Wall Street Zen upgraded Wells Fargo & Company from a "sell" rating to a "hold" rating in a research report on Saturday. The Goldman Sachs Group lowered 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. JPMorgan Chase & Co. lowered their target price on Wells Fargo & Company from $91.00 to $86.50 and set a "neutral" rating for the company in a research report on Thursday, April 30th. Phillip Securities upgraded Wells Fargo & Company from a "moderate buy" rating to a "strong-buy" rating in a research report on Thursday, May 7th. Finally, Barclays lowered their target price on Wells Fargo & Company from $113.00 to $108.00 and set an "overweight" rating for the company in a research report on Wednesday, April 15th.

Wells Fargo & Company Trading Up 0.2%

WFC stock opened at $74.55 on Wednesday. Wells Fargo & Company has a 1-year low of $71.89 and a 1-year high of $97.76. The company has a debt-to-equity ratio of 1.12, a current ratio of 0.90 and a quick ratio of 0.90. The company has a market capitalization of $228.12 billion, a price-to-earnings ratio of 11.50, a PEG ratio of 0.87 and a beta of 0.96. The business has a 50 day simple moving average of $79.03 and a two-hundred day simple moving average of $85.46.

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

Wells Fargo & Company Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Friday, May 8th will be given a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Friday, May 8th. Wells Fargo & Company's dividend payout ratio is currently 27.78%.

Wells Fargo & Company News Roundup

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

• Positive Sentiment: Wells Fargo will present at the Bernstein Strategic Decisions Conference on May 27, keeping management visible to investors and potentially reinforcing the bank’s strategy and outlook. Wells Fargo to Present at the Bernstein Strategic Decisions Conference
• Positive Sentiment: The NAHB/Wells Fargo Housing Market Index unexpectedly rose to 37 in May from 34 in April, a sign that homebuilder sentiment is improving and could support loan demand in the housing market. U.S. Homebuilder Confidence Unexpectedly Rebounds In May
• Positive Sentiment: Wells Fargo and other banks moved up league tables after helping arrange NextEra Energy’s $67 billion deal for Dominion Energy, highlighting stronger investment-banking activity. Lazard, Wells Fargo Vault Up League Tables on NextEra-Dominion Deal
• Neutral Sentiment: One article noted Wells Fargo’s preferred shares offer a discounted yield opportunity with interest-rate optionality, which is more of an investor commentary piece than a direct company catalyst. Wells Fargo Long Duration Preferred: Safe Yield, Discount To Par, And Interest Rate Optionality
• Negative Sentiment: Wells Fargo agreed to a $110 million settlement over lending and hiring discrimination claims, including a $100 million borrower-assistance fund, which may weigh on sentiment despite removing legal uncertainty. Wells Fargo agrees to $110M lending, hiring discrimination settlement

Insider Activity at Wells Fargo & Company

In related news, EVP Kleber Santos sold 25,000 shares of the stock in a transaction on 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 owned 79,876 shares in the company, valued at approximately $7,006,722.72. This represents a 23.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Bridget E. Engle sold 30,000 shares of the stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $87.10, for a total value of $2,613,000.00. Following the sale, the executive vice president owned 83,478 shares in the company, valued at $7,270,933.80. The trade was a 26.44% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 115,000 shares of company stock worth $10,050,000. Company insiders own 0.14% of the company's stock.

Institutional Trading of Wells Fargo & Company

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Private Wealth Group LLC raised its holdings in shares of Wells Fargo & Company by 2.5% in the 4th quarter. Private Wealth Group LLC now owns 4,514 shares of the financial services provider's stock valued at $421,000 after purchasing an additional 108 shares during the period. Nixon Peabody Trust Co. raised its holdings in Wells Fargo & Company by 3.6% in the 4th quarter. Nixon Peabody Trust Co. now owns 3,351 shares of the financial services provider's stock valued at $312,000 after acquiring an additional 115 shares during the period. Simmons Bank raised its holdings in Wells Fargo & Company by 1.9% in the 4th quarter. Simmons Bank now owns 6,359 shares of the financial services provider's stock valued at $593,000 after acquiring an additional 116 shares during the period. Moss Adams Wealth Advisors LLC raised its holdings in Wells Fargo & Company by 1.0% in the 4th quarter. Moss Adams Wealth Advisors LLC now owns 12,048 shares of the financial services provider's stock valued at $1,123,000 after acquiring an additional 117 shares during the period. Finally, Main Street Group LTD raised its holdings in Wells Fargo & Company by 36.9% in the 3rd quarter. Main Street Group LTD now owns 438 shares of the financial services provider's stock valued at $37,000 after acquiring an additional 118 shares during the period. Hedge funds and other institutional investors own 75.90% of the company's stock.

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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