Wells Fargo & Company (NYSE:WFC) Experiences Significant Drop in Short Interest

Wells Fargo & Company (NYSE:WFC) saw a notable reduction in short interest during January. As of January 31st, the total short interest dropped to 27,260,000 shares, which is a decrease of 17.9% from the previous total of 33,210,000 shares on January 15th. With an average daily trading volume of 16,640,000 shares, the current short-interest ratio stands at 1.6 days. At present, only 0.8% of the company's stock is sold short.

Wells Fargo & Company Price Overview

On Friday, shares of NYSE WFC opened at $79.68. The company boasts a market capitalization of $265.29 billion and has a price-to-earnings (P/E) ratio of 14.81. Additionally, the P/E growth (P/E/G) ratio is recorded at 1.22 with a beta of 1.18. Over the past year, Wells Fargo's stock hit a low of $48.62 and a high of $81.50. Its fifty-day moving average is $74.41, while the two-hundred-day moving average is $66.10. The company maintains a debt-to-equity ratio of 1.07, alongside a quick ratio of 0.85 and a current ratio of 0.86.

Recent Earnings Results

Wells Fargo & Company released its earnings results on January 15th. The financial institution reported earnings per share (EPS) of $1.43 for the quarter, exceeding analyst expectations of $1.34 by $0.09. The net margin for the company was recorded at 15.73%, with a return on equity of 12.38%. The revenue for the quarter was $20.38 billion, slightly below the consensus estimate of $20.58 billion. This represents a decline of 0.5% in revenue compared to the same quarter last year, where the business earned an EPS of $0.86. Analysts predict that Wells Fargo & Company will report earnings of 5.89 per share for the ongoing fiscal year.

Dividend Announcement from Wells Fargo & Company

The company has also declared a quarterly dividend, which will be distributed on March 1st. Shareholders who are on record by January 7th will receive a dividend payment of $0.40 per share. This results in an annualized dividend of $1.60 and a dividend yield of 2.01%. The ex-dividend date for this payment is February 7th. Currently, the company's dividend payout ratio (DPR) is 29.74%.

Institutional Investments in Wells Fargo & Company

Several institutional investors have recently adjusted their stakes in Wells Fargo. For instance, Vontobel Holding Ltd. increased its holdings in the company by 106.8% in the third quarter, now owning 48,233 shares valued at $2,725,000 after acquiring an additional 24,911 shares. Other institutions such as B.O.S.S. Retirement Advisors LLC and Hengehold Capital Management LLC have also initiated new positions or increased their stakes in Wells Fargo. Presently, institutional investors own approximately 75.90% of the company's stock.

Changes in Analyst Ratings for Wells Fargo & Company

Recent reports from various brokerages indicate an increase in the target prices for Wells Fargo & Company. For example, Compass Point raised its target price from $60.00 to $83.00 while maintaining a 'neutral' rating. UBS Group also increased its price objective from $69.00 to $85.00, reiterating a 'buy' rating. In total, there have been numerous adjustments, with eleven analysts rating the stock as a 'hold' and ten as a 'buy.' According to MarketBeat, the stock has an average rating of 'Hold' with an average target price of $73.39.

About Wells Fargo & Company

Wells Fargo & Co is a diversified, community-based financial services company. It provides a wide range of services including banking, insurance, investment, mortgage, and consumer and commercial finance products. The company operates through several segments such as Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management.

WellsFargo, Stock, Investment