Wells Fargo 3Q delivers an unwelcome surprise for investors

Marcus Newton
October 14, 2017

Smith Chas P & Associates Pa Cpas increased Wells Fargo & Co Del Com (WFC) stake by 5.56% reported in 2017Q2 SEC filing.

Here are a few institutional investors who have updated their positions.

Since May 5, 2017, it had 1 buy, and 3 insider sales for $3.93 million activity.

However, it did mention that charge over pre-financial crisis mortgages, which was the result of a lawsuit previous year, in which the lender admitted deceiving the USA government into insuring thousands of risky mortgages, and agreed to pay a settlement of $1.2bn. It has three operating divisions: Community Banking, Wholesale Banking, and Wealth and Investment Management.

But management also revised its outlook on a key expense-related metric, saying the bank expects to spend 61 cents for every dollar of revenue it generates this year, up from a range of 60 to 61 cents. (The) reiterated a "buy" rating on shares of Wells Fargo & in a research note on Wednesday. Uss Inv Mgmt Ltd reported 6.36M shares. It also reduced its holding in Travelers Companies Inc (NYSE:TRV) by 201,400 shares in the quarter, leaving it with 52,000 shares, and cut its stake in Alibaba Group Hldg Ltd (NYSE:BABA).

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ARM interest rates in the 5 year category at Wells Fargo are being quoted at 3.375% and an April of 3.445%.

Wells Fargo & (NYSE WFC) opened at 55.21 on Monday. Moreover, West Family has 0.3% invested in Wells Fargo & Co (NYSE:WFC) for 25,000 shares. The firm has a market cap of $274.06 billion, a price-to-earnings ratio of 13.60 and a beta of 0.97. After a recent look, shares have been seen 1.31% from the 200-day moving average, and 4.67% from the 50-day moving average. For the quarter, shares have been noted at 0.40%. That was an increase of 37 advisers from the end of the second quarter, but well below the 15,086 it had at this time a year ago. Wells Fargo & had a net margin of 23.25% and a return on equity of 12.65%. That would match the figure the company earned a year earlier. The analysts estimated EPS for the higher end at 1.1 and lower end at 0.94 while the year ago reported earnings per share was 1.06. This buyback authorization permits the financial services provider to buy up to 4.2% of its stock through open market purchases. The investor checklist may include studying the scope of a company's competitive industry advantage, examining company management, and trying to get a general feel if the stock is valued properly. If you are accessing this article on another site, it was illegally copied and republished in violation of United States & worldwide copyright & trademark legislation. The original version of this piece can be viewed at https://www.truebluetribune.com/2017/10/13/wells-fargo-company-wfc-earns-buy-rating-from-citigroup-inc.html. The firm has "Buy" rating by Argus Research given on Tuesday, January 19.

The bank also has the same underlying challenges as rivals, including a drop in mortgage refinancing, interest income rising slowly after a prolonged period of rock-bottom rates, expensive technology investments and new regulations.

WFC has been the subject of a number of recent research reports. The shorter term, popular 15 year loan interest rates are 3.875% today and an April of 4.168%.

On September 28 Nomura held the company rating at "Buy" and raised the price expectation to $65.00 from $51.00. The stock has a consensus rating of "Hold" and an average price target of $57.19. First Fincl Corporation In has invested 0.79% in Wells Fargo & Co (NYSE:WFC).

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