Wells Fargo & Company (NYSE:WFC) Stock Price Down 3.6% - Here's Why

Key Points

• Wells Fargo's stock price dropped by 3.6% to $78.87, with a trading volume significantly lower than its average.
• Despite the decline, the company reported earnings of $1.54 per share, exceeding analysts' estimates, alongside a growth in quarterly revenue.
• The company announced an increase in its dividend to $0.45 per share, reflecting a promising dividend yield of 2.3%.

Shares of Wells Fargo & Company (NYSE:WFC) fell 3.6% on Friday . The stock traded as low as $79.11 and last traded at $78.87. 5,686,125 shares changed hands during trading, a decline of 66% from the average session volume of 16,925,252 shares. The stock had previously closed at $81.83.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on WFC. Citigroup reaffirmed a "neutral" rating on shares of Wells Fargo & Company in a research note on Tuesday, July 8th. Raymond James Financial lowered Wells Fargo & Company from a "strong-buy" rating to a "market perform" rating in a research report on Monday, July 7th. The Goldman Sachs Group decreased their price target on Wells Fargo & Company from $92.00 to $91.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th. TD Cowen assumed coverage on Wells Fargo & Company in a research report on Thursday, May 15th. They issued a "hold" rating and a $83.00 price target for the company. Finally, Cowen reiterated a "hold" rating on shares of Wells Fargo & Company in a research report on Wednesday, July 16th. Ten equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $82.56.

Wells Fargo & Company Price Performance

The stock has a 50 day moving average price of $80.55 and a two-hundred day moving average price of $75.08. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.83 and a current ratio of 0.84. The company has a market capitalization of $253.00 billion, a PE ratio of 13.52, a P/E/G ratio of 1.25 and a beta of 1.25.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last posted its quarterly earnings results on Tuesday, July 15th. The financial services provider reported $1.54 earnings per share for the quarter, topping analysts' consensus estimates of $1.41 by $0.13. Wells Fargo & Company had a return on equity of 12.29% and a net margin of 16.82%.The company had revenue of $20.82 billion during the quarter, compared to the consensus estimate of $20.83 billion. During the same period last year, the business earned $1.33 EPS. The business's quarterly revenue was up .6% on a year-over-year basis. Equities analysts forecast that Wells Fargo & Company will post 5.89 earnings per share for the current year.

Wells Fargo & Company Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 1st. Stockholders of record on Friday, August 8th were paid a dividend of $0.45 per share. This is a boost from Wells Fargo & Company's previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Friday, August 8th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.3%. Wells Fargo & Company's dividend payout ratio (DPR) is 30.82%.

Institutional Investors Weigh In On Wells Fargo & Company

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Access Investment Management LLC acquired a new position in shares of Wells Fargo & Company during the 2nd quarter valued at about $25,000. McElhenny Sheffield Capital Management LLC acquired a new position in shares of Wells Fargo & Company during the 2nd quarter valued at about $27,000. CBIZ Investment Advisory Services LLC increased its holdings in shares of Wells Fargo & Company by 585.5% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 377 shares of the financial services provider's stock valued at $27,000 after acquiring an additional 322 shares during the last quarter. Kilter Group LLC acquired a new position in shares of Wells Fargo & Company during the 2nd quarter valued at about $31,000. Finally, Accent Capital Management LLC acquired a new position in shares of Wells Fargo & Company during the 1st quarter valued at about $29,000. 75.90% of the stock is owned by hedge funds and other institutional investors.

About Wells Fargo & Company

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.