Investors Purchase Large Volume of Call Options on Wells Fargo & Co (NYSE:WFC)

Wells Fargo & Co (NYSE:WFC) was the target of some unusual options trading on Wednesday. Stock investors purchased 897,776 call options on the stock. This is an increase of approximately 3,980% compared to the average daily volume of 22,006 call options.

Large investors have recently bought and sold shares of the business. Coastal Capital Group Inc. purchased a new position in Wells Fargo & Co in the second quarter valued at $78,000. Little House Capital LLC grew its holdings in shares of Wells Fargo & Co by 372.8% during the second quarter. Little House Capital LLC now owns 149,639 shares of the financial services provider’s stock worth $7,081,000 after purchasing an additional 117,987 shares during the last quarter. Cibc Bank USA grew its holdings in shares of Wells Fargo & Co by 15.4% during the second quarter. Cibc Bank USA now owns 28,181 shares of the financial services provider’s stock worth $1,334,000 after purchasing an additional 3,756 shares during the last quarter. Ballentine Partners LLC grew its holdings in shares of Wells Fargo & Co by 16.3% during the second quarter. Ballentine Partners LLC now owns 22,787 shares of the financial services provider’s stock worth $1,078,000 after purchasing an additional 3,193 shares during the last quarter. Finally, Cetera Investment Advisers grew its holdings in shares of Wells Fargo & Co by 4.3% during the second quarter. Cetera Investment Advisers now owns 14,392 shares of the financial services provider’s stock worth $684,000 after purchasing an additional 595 shares during the last quarter. Institutional investors own 75.13% of the company’s stock.

Several brokerages have recently issued reports on WFC. Credit Suisse Group boosted their price objective on Wells Fargo & Co from $52.00 to $53.00 and gave the company a “neutral” rating in a report on Friday, October 4th. Robert W. Baird cut Wells Fargo & Co from an “outperform” rating to a “neutral” rating and set a $50.00 price objective for the company. in a report on Monday, September 30th. UBS Group cut Wells Fargo & Co from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $51.00 to $49.00 in a report on Tuesday, September 10th. ValuEngine raised Wells Fargo & Co from a “sell” rating to a “hold” rating in a report on Tuesday, October 15th. Finally, Morgan Stanley boosted their price objective on Wells Fargo & Co from $47.00 to $50.00 and gave the company an “equal weight” rating in a report on Monday, September 30th. Four research analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and two have given a buy rating to the stock. The stock presently has an average rating of “Hold” and an average price target of $49.75.

Shares of Wells Fargo & Co stock opened at $53.80 on Thursday. The company has a quick ratio of 0.85, a current ratio of 0.86 and a debt-to-equity ratio of 1.33. Wells Fargo & Co has a twelve month low of $43.02 and a twelve month high of $55.04. The business has a 50-day moving average price of $50.19 and a 200 day moving average price of $47.54. The firm has a market cap of $222.97 billion, a PE ratio of 12.28, a P/E/G ratio of 1.09 and a beta of 1.11.

Wells Fargo & Co (NYSE:WFC) last posted its quarterly earnings data on Tuesday, October 15th. The financial services provider reported $0.92 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.15 by ($0.23). Wells Fargo & Co had a return on equity of 13.01% and a net margin of 21.67%. The firm had revenue of $22.01 billion for the quarter, compared to analysts’ expectations of $21.32 billion. During the same quarter last year, the firm posted $1.13 earnings per share. Wells Fargo & Co’s quarterly revenue was up .3% on a year-over-year basis. On average, sell-side analysts expect that Wells Fargo & Co will post 4.5 EPS for the current year.

Wells Fargo & Co announced that its board has approved a stock buyback program on Tuesday, July 23rd that permits the company to buyback 350,000,000 shares. This buyback authorization permits the financial services provider to repurchase shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management believes its shares are undervalued.

The company also recently disclosed a quarterly dividend, which will be paid on Sunday, December 1st. Shareholders of record on Friday, November 8th will be paid a dividend of $0.51 per share. The ex-dividend date of this dividend is Thursday, November 7th. This represents a $2.04 annualized dividend and a yield of 3.79%. Wells Fargo & Co’s dividend payout ratio (DPR) is currently 46.58%.

Wells Fargo & Co Company Profile

Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. It operates through three segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. The company also engages in the wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, computer and data processing, trust, investment advisory, mortgage-backed securities, and venture capital investment services.

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