Wells Fargo & Company (NYSE:WFC) Trading 1.4% Higher - Here's What Happened

Key Points

• Wells Fargo & Company shares rose by 1.4% during trading amid a significant decline in volume, with 2.5 million shares traded compared to an average of 17.1 million.
• Equities analysts have given the stock a consensus rating of "Moderate Buy", with a price target averaging $81.58, as several institutions upgraded their ratings recently.
• The company has announced a dividend increase to $0.45 per share, along with a $40 billion share repurchase program, indicating strong confidence in its financial position.

Wells Fargo & Company (NYSE:WFC) shares shot up 1.4% during mid-day trading on Friday . The stock traded as high as $79.09 and last traded at $78.88. 2,547,518 shares were traded during mid-day trading, a decline of 85% from the average session volume of 17,141,945 shares. The stock had previously closed at $77.83.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Evercore ISI reissued an "outperform" rating on shares of Wells Fargo & Company in a research report on Tuesday, July 8th. Truist Financial boosted their price objective on Wells Fargo & Company from $83.00 to $86.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Piper Sandler restated an "overweight" rating on shares of Wells Fargo & Company in a research note on Tuesday, July 8th. The Goldman Sachs Group reduced their target price on Wells Fargo & Company from $92.00 to $91.00 and set a "buy" rating for the company in a report on Wednesday, July 16th. Finally, TD Cowen started coverage on Wells Fargo & Company in a research note on Thursday, May 15th. They issued a "hold" rating and a $83.00 price objective for the company. Eleven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $81.58.

Wells Fargo & Company Trading Up 1.6%

The firm has a fifty day moving average of $79.42 and a 200 day moving average of $74.97. 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 firm has a market capitalization of $253.29 billion, a PE ratio of 13.54, a P/E/G ratio of 1.22 and a beta of 1.20.

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

Wells Fargo & Company Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 1st. Shareholders of record on Friday, August 8th will be paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Friday, August 8th. This is an increase from Wells Fargo & Company's previous quarterly dividend of $0.40. Wells Fargo & Company's dividend payout ratio (DPR) is presently 30.82%.

Wells Fargo & Company announced that its Board of Directors has initiated a share repurchase program on Tuesday, April 29th that authorizes the company to buyback $40.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to repurchase up to 17.2% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On Wells Fargo & Company

Several large investors have recently made changes to their positions in WFC. Access Investment Management LLC acquired a new position in Wells Fargo & Company in the 2nd quarter valued at approximately $25,000. McElhenny Sheffield Capital Management LLC acquired a new position in shares of Wells Fargo & Company in the 2nd quarter valued at $27,000. CBIZ Investment Advisory Services LLC raised its stake in 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 worth $27,000 after buying an additional 322 shares during the period. Kilter Group LLC acquired a new stake in Wells Fargo & Company during the 2nd quarter worth $31,000. Finally, BNP Paribas acquired a new stake in shares of Wells Fargo & Company in the 4th quarter valued at about $28,000. Institutional investors and hedge funds own 75.90% of the company's stock.

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.

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.