Wolfe Research Lowers Wells Fargo & Co (WFC) to Market Perform

Wolfe Research cut shares of Wells Fargo & Co (NYSE:WFC) from an outperform rating to a market perform rating in a report issued on Tuesday morning, The Fly reports.

Several other research analysts have also commented on the company. Edward Jones upgraded Wells Fargo & Co from a hold rating to a buy rating in a report on Monday, September 17th. Macquarie reduced their price objective on shares of Wells Fargo & Co from $63.00 to $62.00 and set a neutral rating on the stock in a report on Monday, September 17th. UBS Group set a $63.00 price objective on shares of Wells Fargo & Co and gave the company a buy rating in a report on Friday, September 28th. Citigroup upgraded shares of Wells Fargo & Co from a neutral rating to a buy rating in a report on Friday, November 2nd. Finally, Zacks Investment Research lowered shares of Wells Fargo & Co from a hold rating to a sell rating in a report on Tuesday, September 18th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and thirteen have issued a buy rating to the company’s stock. Wells Fargo & Co presently has an average rating of Hold and a consensus target price of $61.93.

NYSE WFC opened at $47.87 on Tuesday. Wells Fargo & Co has a 52 week low of $43.02 and a 52 week high of $66.31. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.86 and a current ratio of 0.87. The firm has a market cap of $233.16 billion, a PE ratio of 11.65, a P/E/G ratio of 0.84 and a beta of 1.10.

Wells Fargo & Co (NYSE:WFC) last posted its quarterly earnings results on Friday, October 12th. The financial services provider reported $1.13 EPS for the quarter, missing the consensus estimate of $1.17 by ($0.04). Wells Fargo & Co had a return on equity of 12.69% and a net margin of 23.17%. The company had revenue of $21.94 billion for the quarter, compared to analysts’ expectations of $21.90 billion. Sell-side analysts expect that Wells Fargo & Co will post 4.49 earnings per share for the current fiscal year.

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

A number of large investors have recently modified their holdings of WFC. Capital International Investors increased its stake in Wells Fargo & Co by 270.1% during the third quarter. Capital International Investors now owns 89,775,252 shares of the financial services provider’s stock worth $4,718,587,000 after purchasing an additional 65,517,025 shares during the period. Primecap Management Co. CA increased its stake in Wells Fargo & Co by 47.1% during the third quarter. Primecap Management Co. CA now owns 38,512,187 shares of the financial services provider’s stock worth $2,024,201,000 after purchasing an additional 12,337,098 shares during the period. Charles Schwab Investment Advisory Inc. purchased a new stake in Wells Fargo & Co during the second quarter worth about $321,220,000. OppenheimerFunds Inc. increased its stake in Wells Fargo & Co by 1,283.4% during the third quarter. OppenheimerFunds Inc. now owns 3,087,235 shares of the financial services provider’s stock worth $162,264,000 after purchasing an additional 2,864,065 shares during the period. Finally, American Century Companies Inc. increased its stake in Wells Fargo & Co by 29.9% during the second quarter. American Century Companies Inc. now owns 10,583,847 shares of the financial services provider’s stock worth $586,768,000 after purchasing an additional 2,436,521 shares during the period. Institutional investors own 72.97% of the company’s stock.

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. 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.

Read More: Price to Earnings Ratio (PE) Basics

The Fly

Analyst Recommendations for Wells Fargo & Co (NYSE:WFC)

Receive News & Ratings for Wells Fargo & Co Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Wells Fargo & Co and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply