Investors Sell Wells Fargo & Co (WFC) on Strength (WFC)

Traders sold shares of Wells Fargo & Co (NYSE:WFC) on strength during trading on Monday. $121.34 million flowed into the stock on the tick-up and $283.61 million flowed out of the stock on the tick-down, for a money net flow of $162.27 million out of the stock. Of all equities tracked, Wells Fargo & Co had the 8th highest net out-flow for the day. Wells Fargo & Co traded up $1.05 for the day and closed at $52.88

Several equities analysts have weighed in on the company. Zacks Investment Research lowered Wells Fargo & Co from a “buy” rating to a “hold” rating in a report on Monday, July 30th. Macquarie lowered Wells Fargo & Co from an “outperform” rating to a “neutral” rating in a report on Friday, September 7th. They noted that the move was a valuation call. Wolfe Research assumed coverage on Wells Fargo & Co in a report on Tuesday, September 25th. They set an “outperform” rating for the company. Edward Jones raised Wells Fargo & Co from a “hold” rating to a “buy” rating in a report on Monday, September 17th. Finally, Citigroup raised Wells Fargo & Co from a “neutral” rating to a “buy” rating in a report on Friday, November 2nd. Three research analysts have rated the stock with a sell rating, six have assigned a hold rating and fifteen have given a buy rating to the stock. The stock has an average rating of “Buy” and an average price target of $63.79.

The stock has a market capitalization of $252.81 billion, a PE ratio of 12.87, a price-to-earnings-growth ratio of 1.03 and a beta of 1.01. The company has a quick ratio of 0.86, a current ratio of 0.87 and a debt-to-equity ratio of 1.26.

Wells Fargo & Co (NYSE:WFC) last posted its earnings results on Friday, October 12th. The financial services provider reported $1.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.17 by ($0.04). The company had revenue of $21.94 billion for the quarter, compared to analysts’ expectations of $21.90 billion. Wells Fargo & Co had a return on equity of 12.69% and a net margin of 23.17%. As a group, analysts forecast that Wells Fargo & Co will post 4.5 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Saturday, December 1st. Shareholders of record on Friday, November 9th will be given a dividend of $0.43 per share. The ex-dividend date of this dividend is Thursday, November 8th. This represents a $1.72 annualized dividend and a dividend yield of 3.25%. Wells Fargo & Co’s dividend payout ratio is currently 41.85%.

Wells Fargo & Co announced that its Board of Directors has initiated a share buyback program on Tuesday, October 23rd that allows the company to repurchase 350,000,000 outstanding shares. This repurchase authorization allows the financial services provider to buy shares of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.

Several hedge funds have recently modified their holdings of WFC. Sageworth Trust Co increased its stake in Wells Fargo & Co by 257.9% in the third quarter. Sageworth Trust Co now owns 2,151 shares of the financial services provider’s stock valued at $113,000 after acquiring an additional 1,550 shares during the last quarter. Landaas & Co. WI ADV bought a new position in Wells Fargo & Co in the second quarter valued at $117,000. Lee Financial Co increased its stake in Wells Fargo & Co by 433.4% in the third quarter. Lee Financial Co now owns 2,507 shares of the financial services provider’s stock valued at $132,000 after acquiring an additional 2,037 shares during the last quarter. Almanack Investment Partners LLC. bought a new position in Wells Fargo & Co in the third quarter valued at $141,000. Finally, Parkside Investments LLC bought a new position in Wells Fargo & Co in the third quarter valued at $174,000. Institutional investors own 75.50% of the company’s stock.

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About Wells Fargo & Co (NYSE:WFC)

Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. The company's Community Banking segment offers checking and savings accounts; credit and debit cards; and automobile, student, mortgage, home equity, and small business loans.

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