Wells Fargo & Company (NYSE:WFC) Sets New 12-Month High on Strong Earnings

Key Points

• Wells Fargo & Company reached a new 12-month high of $87.16 on strong quarterly earnings, reporting earnings per share of $1.66, exceeding estimates by $0.11.
• The company increased its quarterly dividend from $0.40 to $0.45 per share, representing an annualized payout of $1.80 and a 2.1% dividend yield.
• Analysts have raised their price targets for Wells Fargo, with estimates now ranging from $85.00 to $92.00, reflecting a mix of "buy," "hold," and "market perform" ratings.

Wells Fargo & Company (NYSE:WFC)'s stock price reached a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $87.16 and last traded at $86.55, with a volume of 4826324 shares changing hands. The stock had previously closed at $84.56.

The financial services provider reported $1.66 earnings per share for the quarter, beating analysts' consensus estimates of $1.55 by $0.11. Wells Fargo & Company had a net margin of 16.82% and a return on equity of 12.29%. The firm had revenue of $21.44 billion for the quarter, compared to analyst estimates of $21.11 billion. During the same period last year, the firm earned $1.42 earnings per share. The business's quarterly revenue was up 5.3% compared to the same quarter last year.

Wells Fargo & Company Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 1st. Investors of record on Friday, August 8th were given a dividend of $0.45 per share. The ex-dividend date of this dividend was Friday, August 8th. This is an increase from Wells Fargo & Company's previous quarterly dividend of $0.40. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.1%. Wells Fargo & Company's payout ratio is 30.82%.

Analysts Set New Price Targets

A number of research firms recently weighed in on WFC. Keefe, Bruyette & Woods lifted their price objective on shares of Wells Fargo & Company from $85.00 to $92.00 and gave the stock a "market perform" rating in a research report on Wednesday. Piper Sandler reaffirmed an "overweight" rating on shares of Wells Fargo & Company in a research report on Tuesday, July 8th. The Goldman Sachs Group lowered their price objective on shares of Wells Fargo & Company from $92.00 to $91.00 and set a "buy" rating on the stock in a research report on Wednesday, July 16th. Citigroup lifted their price objective on shares of Wells Fargo & Company from $85.00 to $90.00 and gave the stock a "neutral" rating in a research report on Tuesday, September 23rd. Finally, Cowen reaffirmed a "hold" rating on shares of Wells Fargo & Company in a research report on Wednesday, July 16th. Nine equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $88.90.

Institutional Investors Weigh In On Wells Fargo & Company

A number of institutional investors have recently made changes to their positions in the business. Access Investment Management LLC purchased a new stake in Wells Fargo & Company during the 2nd quarter valued at $25,000. CBIZ Investment Advisory Services LLC raised its holdings in Wells Fargo & Company by 585.5% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 377 shares of the financial services provider's stock worth $27,000 after purchasing an additional 322 shares in the last quarter. McElhenny Sheffield Capital Management LLC bought a new position in Wells Fargo & Company in the 2nd quarter worth $27,000. Motco raised its holdings in Wells Fargo & Company by 397.6% in the 1st quarter. Motco now owns 408 shares of the financial services provider's stock worth $29,000 after purchasing an additional 326 shares in the last quarter. Finally, Accent Capital Management LLC bought a new position in Wells Fargo & Company in the 1st quarter worth $29,000. Hedge funds and other institutional investors own 75.90% of the company's stock.

Wells Fargo & Company Stock Up 2.4%

The company has a current ratio of 0.84, a quick ratio of 0.83 and a debt-to-equity ratio of 1.06. The company's fifty day simple moving average is $80.79 and its 200 day simple moving average is $76.67. The firm has a market capitalization of $277.42 billion, a P/E ratio of 14.83, a price-to-earnings-growth ratio of 1.27 and a beta of 1.25.

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.

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