Wells Fargo & Co. (NYSE:WFC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Wells Fargo’s troubles continue to deepen following its $190-million settlement to resolve regulators’ claims of illegally opening millions of unauthorized accounts. The company currently faces huge criticism as the bank’s employees resorted to unethical sales practices to meet their aggressive internal sales targets. The bank has terminated the concerned employees and is taking necessary steps to address the issue. However, the fallout from the scam does not only include potential lawsuits and further probes but also tarnishes the reputation of one of the largest banks of the nation. While the company’s growth profile remains well positioned, given its strong geographic footprint and solid business mix, the low interest rate environment continues to weigh on margin.”
Several other equities analysts also recently issued reports on the stock. Keefe, Bruyette & Woods reissued an “outperform” rating and set a $57.00 price target on shares of Wells Fargo & Co. in a report on Friday, September 9th. Vetr downgraded shares of Wells Fargo & Co. from a “strong-buy” rating to a “buy” rating and set a $51.06 price target for the company. in a report on Wednesday, July 6th. Raymond James Financial Inc. reissued a “market perform” rating on shares of Wells Fargo & Co. in a report on Thursday, July 7th. Bank of America Corp. set a $50.00 price target on shares of Wells Fargo & Co. and gave the company a “buy” rating in a report on Monday. Finally, FBR & Co reissued a “buy” rating and set a $63.00 price target on shares of Wells Fargo & Co. in a report on Monday, July 18th. Seven research analysts have rated the stock with a sell rating, six have given a hold rating and twenty-one have assigned a buy rating to the company. The company has an average rating of “Hold” and an average target price of $52.26.
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Shares of Wells Fargo & Co. (NYSE:WFC) traded up 0.9670% during midday trading on Tuesday, hitting $46.4549. 15,530,215 shares of the company were exchanged. Wells Fargo & Co. has a one year low of $44.50 and a one year high of $56.34. The stock has a market cap of $234.39 billion, a PE ratio of 11.4703 and a beta of 0.90. The stock’s 50-day moving average is $48.48 and its 200-day moving average is $48.66.
Wells Fargo & Co. (NYSE:WFC) last released its quarterly earnings data on Friday, July 15th. The financial services provider reported $1.01 EPS for the quarter, hitting analysts’ consensus estimates of $1.01. The company earned $22.20 billion during the quarter. Wells Fargo & Co. had a net margin of 24.33% and a return on equity of 12.95%. Wells Fargo & Co.’s revenue was up 4.0% on a year-over-year basis. During the same period in the previous year, the business posted $1.03 earnings per share. Equities research analysts anticipate that Wells Fargo & Co. will post $4.02 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 1st. Investors of record on Friday, August 5th were given a dividend of $0.38 per share. The ex-dividend date was Wednesday, August 3rd. This represents a $1.52 annualized dividend and a yield of 3.30%. Wells Fargo & Co.’s dividend payout ratio is 37.25%.
In related news, COO Timothy J. Sloan sold 20,500 shares of the company’s stock in a transaction dated Monday, August 8th. The shares were sold at an average price of $48.92, for a total transaction of $1,002,860.00. Following the completion of the sale, the chief operating officer now owns 650,815 shares of the company’s stock, valued at $31,837,869.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.29% of the company’s stock.
Large investors have recently bought and sold shares of the company. Global X Management Co. LLC boosted its position in Wells Fargo & Co. by 64.8% in the second quarter. Global X Management Co. LLC now owns 2,301 shares of the financial services provider’s stock worth $109,000 after buying an additional 905 shares during the period. Brick & Kyle Associates boosted its position in Wells Fargo & Co. by 10.6% in the first quarter. Brick & Kyle Associates now owns 3,153 shares of the financial services provider’s stock worth $152,000 after buying an additional 303 shares during the period. Tradewinds Capital Management LLC boosted its position in Wells Fargo & Co. by 4.7% in the second quarter. Tradewinds Capital Management LLC now owns 3,253 shares of the financial services provider’s stock worth $154,000 after buying an additional 147 shares during the period. Cedar Wealth Management LLC boosted its position in Wells Fargo & Co. by 47.8% in the second quarter. Cedar Wealth Management LLC now owns 3,276 shares of the financial services provider’s stock worth $155,000 after buying an additional 1,059 shares during the period. Finally, Gemmer Asset Management LLC boosted its position in Wells Fargo & Co. by 6.7% in the second quarter. Gemmer Asset Management LLC now owns 3,735 shares of the financial services provider’s stock worth $177,000 after buying an additional 234 shares during the period. 74.01% of the stock is owned by institutional investors and hedge funds.
About Wells Fargo & Co.
Wells Fargo & Company is a bank holding company. The Company is a financial services company, which offers banking, insurance, trust and investments, mortgage banking, investment banking, retail banking, brokerage, and consumer and commercial finance. It has three operating segments: Community Banking, Wholesale Banking, and Wealth and Investment Management.
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