Wells Fargo & Co (NYSE:WFC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.

According to Zacks, “Shares of Wells Fargo underperformed the industry over the last six months. Yet, the company has a decent earnings surprise history. The company surpassed the Zacks Consensus Estimate for earnings in two out of the trailing four quarters. Wells Fargo’s fourth-quarter 2017 earnings improved from the prior-year quarter. Notably, results recorded tax benefit related to the Tax Cuts & Jobs Act. Recently, Wells Fargo has been slapped with new sanctions including a cap on the assets position for the past misconducts by the Federal Reserve. Moreover, Moody’s has downgraded the rating outlook of the bank to negative, though S&P has kept unchanged at stable. While the current crisis related to the revelation of illegally opening millions of illegal accounts in 2016 at the company will take some time to alleviate, we believe consistent growth in loans and deposits, lower tax rate and expansions will likely support its growth profile.”

Several other research analysts have also issued reports on WFC. Vetr upgraded Wells Fargo & Co from a “sell” rating to a “hold” rating and set a $52.91 price objective for the company in a research note on Monday, October 16th. BMO Capital Markets increased their price objective on Wells Fargo & Co from $49.00 to $50.00 and gave the stock a “market perform” rating in a research note on Monday, October 16th. UBS Group set a $55.00 price objective on Wells Fargo & Co and gave the stock a “hold” rating in a research note on Monday, October 16th. Keefe, Bruyette & Woods reiterated a “buy” rating and set a $59.00 price objective on shares of Wells Fargo & Co in a research note on Monday, October 16th. Finally, Royal Bank of Canada reiterated a “buy” rating and set a $60.00 price objective on shares of Wells Fargo & Co in a research note on Wednesday, November 15th. Six research analysts have rated the stock with a sell rating, eleven have given a hold rating and thirteen have assigned a buy rating to the company. The company has a consensus rating of “Hold” and a consensus price target of $62.90.

Shares of Wells Fargo & Co (WFC) traded up $0.26 during mid-day trading on Tuesday, reaching $59.81. The company had a trading volume of 15,383,277 shares, compared to its average volume of 25,286,250. The company has a market capitalization of $294,180.00, a PE ratio of 14.46, a P/E/G ratio of 1.52 and a beta of 1.01. Wells Fargo & Co has a 52-week low of $49.27 and a 52-week high of $66.31. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.88 and a current ratio of 0.90.

Wells Fargo & Co (NYSE:WFC) last issued its earnings results on Friday, January 12th. The financial services provider reported $0.97 EPS for the quarter, missing the consensus estimate of $1.04 by ($0.07). The firm had revenue of $22.05 billion during the quarter, compared to the consensus estimate of $22.64 billion. Wells Fargo & Co had a return on equity of 12.24% and a net margin of 22.57%. The firm’s revenue for the quarter was up 2.2% compared to the same quarter last year. During the same period last year, the business earned $0.96 earnings per share. research analysts anticipate that Wells Fargo & Co will post 4.72 EPS for the current fiscal year.

Wells Fargo & Co announced that its Board of Directors has authorized a share buyback plan on Tuesday, January 23rd that allows the company to repurchase 350,000,000 shares. This repurchase authorization allows the financial services provider to purchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

In related news, VP Richard Levy sold 97,000 shares of Wells Fargo & Co stock in a transaction dated Thursday, November 30th. The stock was sold at an average price of $56.47, for a total value of $5,477,590.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider John R. Shrewsberry sold 70,000 shares of Wells Fargo & Co stock in a transaction dated Thursday, November 30th. The stock was sold at an average price of $56.90, for a total value of $3,983,000.00. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 184,482 shares of company stock valued at $10,471,050. 0.22% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently made changes to their positions in WFC. Vanguard Group Inc. boosted its holdings in Wells Fargo & Co by 1.2% during the second quarter. Vanguard Group Inc. now owns 314,755,460 shares of the financial services provider’s stock worth $17,440,601,000 after buying an additional 3,621,402 shares during the last quarter. Capital World Investors boosted its holdings in Wells Fargo & Co by 10.8% during the second quarter. Capital World Investors now owns 111,753,448 shares of the financial services provider’s stock worth $6,192,259,000 after buying an additional 10,927,679 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Wells Fargo & Co by 1.3% during the fourth quarter. Geode Capital Management LLC now owns 46,311,774 shares of the financial services provider’s stock worth $2,803,705,000 after buying an additional 584,764 shares during the last quarter. Capital Research Global Investors boosted its holdings in Wells Fargo & Co by 19.7% during the second quarter. Capital Research Global Investors now owns 45,327,803 shares of the financial services provider’s stock worth $2,511,614,000 after buying an additional 7,445,414 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in Wells Fargo & Co by 17.8% during the third quarter. Dimensional Fund Advisors LP now owns 35,143,414 shares of the financial services provider’s stock worth $1,937,888,000 after buying an additional 5,305,125 shares during the last quarter. Hedge funds and other institutional investors own 76.00% of the company’s stock.

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Wells Fargo & Co Company Profile

Wells Fargo & Company is a bank holding company. The Company is a diversified financial services company. It has three operating segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. The Company offers its services under three categories: personal, small business and commercial.

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