Wells Fargo & Co. (WFC) Lowered to “Sell” at Zacks Investment Research
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.”
Other research analysts also recently issued research reports about the stock. Deutsche Bank AG reissued a “buy” rating on shares of Wells Fargo & Co. in a research report on Sunday, June 26th. Barclays PLC reissued a “buy” rating on shares of Wells Fargo & Co. in a research report on Saturday, July 9th. Nomura reissued a “buy” rating on shares of Wells Fargo & Co. in a research report on Saturday, July 9th. Morgan Stanley upgraded shares of Wells Fargo & Co. from an “equal weight” rating to an “overweight” rating and cut their target price for the stock from $56.00 to $53.00 in a research note on Tuesday. Finally, Credit Agricole SA restated an “outperform” rating and set a $57.00 target price on shares of Wells Fargo & Co. in a research note on Tuesday. Seven research analysts have rated the stock with a sell rating, six have assigned a hold rating and twenty-one have assigned a buy rating to the company. The company presently has an average rating of “Hold” and a consensus price target of $52.26.
Wells Fargo & Co. (NYSE:WFC) traded up 0.91% during mid-day trading on Tuesday, reaching $46.43. 14,973,147 shares of the company were exchanged. The stock has a market capitalization of $234.26 billion, a price-to-earnings ratio of 11.46 and a beta of 0.90. The company’s 50 day moving average price is $48.48 and its 200-day moving average price is $48.66. Wells Fargo & Co. has a 12-month low of $44.50 and a 12-month high of $56.34.
Wells Fargo & Co. (NYSE:WFC) last announced its quarterly earnings data on Friday, July 15th. The financial services provider reported $1.01 EPS for the quarter, meeting analysts’ consensus estimates of $1.01. Wells Fargo & Co. had a net margin of 24.33% and a return on equity of 12.95%. The company earned $22.20 billion during the quarter. During the same period last year, the business earned $1.03 EPS. The business’s revenue was up 4.0% on a year-over-year basis. On average, equities research analysts forecast that Wells Fargo & Co. will post $4.02 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Thursday, September 1st. Stockholders of record on Friday, August 5th were paid a $0.38 dividend. The ex-dividend date was Wednesday, August 3rd. This represents a $1.52 annualized dividend and a dividend yield of 3.30%. Wells Fargo & Co.’s payout ratio is 37.25%.
In related news, COO Timothy J. Sloan sold 20,500 shares of the 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 transaction, the chief operating officer now owns 650,815 shares in the company, valued at $31,837,869.80. The transaction was disclosed in a document filed with the SEC, which is available through this link. 0.29% of the stock is currently owned by insiders.
Institutional investors have recently bought and sold shares of the stock. Global X Management Co. LLC raised 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 valued at $109,000 after buying an additional 905 shares during the last quarter. Brick & Kyle Associates raised 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 valued at $152,000 after buying an additional 303 shares during the last quarter. Tradewinds Capital Management LLC raised 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 valued at $154,000 after buying an additional 147 shares during the last quarter. Cedar Wealth Management LLC raised 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 valued at $155,000 after buying an additional 1,059 shares during the last quarter. Finally, Gemmer Asset Management LLC raised 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 valued at $177,000 after buying an additional 234 shares during the last quarter. Institutional investors own 74.01% of the company’s stock.
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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