Wells Fargo & (NYSE:WFC) to Repurchase $11.50 billion in Outstanding Shares

Wells Fargo & (NYSE:WFC) declared that its board has approved a stock buyback program, which authorizes the company to repurchase $11.50 billion in outstanding shares on Wednesday, June 28th, EventVestor reports. This repurchase authorization authorizes the financial services provider to buy up to 4.2% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Wells Fargo & (NYSE WFC) traded down 2.58% during midday trading on Friday, hitting $53.30. 32,590,568 shares of the stock traded hands. The company has a 50-day moving average price of $54.48 and a 200 day moving average price of $55.12. The stock has a market cap of $264.73 billion, a price-to-earnings ratio of 13.13 and a beta of 0.96. Wells Fargo & has a one year low of $43.55 and a one year high of $59.99.

Wells Fargo & (NYSE:WFC) last posted its earnings results on Friday, July 14th. The financial services provider reported $1.07 EPS for the quarter, beating the Zacks’ consensus estimate of $1.02 by $0.05. The firm had revenue of $22.20 billion for the quarter, compared to the consensus estimate of $22.23 billion. Wells Fargo & had a net margin of 23.25% and a return on equity of 12.65%. The company’s revenue was up .2% on a year-over-year basis. During the same period last year, the firm posted $1.01 EPS. Equities research analysts anticipate that Wells Fargo & will post $4.17 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 1st. Investors of record on Friday, August 4th will be paid a dividend of $0.39 per share. The ex-dividend date is Wednesday, August 2nd. This represents a $1.56 dividend on an annualized basis and a yield of 2.93%. This is a boost from Wells Fargo &’s previous quarterly dividend of $0.38. Wells Fargo &’s dividend payout ratio is currently 37.44%.

Several analysts have weighed in on WFC shares. Evercore ISI lowered their price objective on Wells Fargo & from $60.00 to $58.00 and set an “outperform” rating on the stock in a research report on Friday, May 12th. Credit Suisse Group reiterated an “outperform” rating and set a $40.00 target price (up from $36.00) on shares of Wells Fargo & in a research note on Friday, April 14th. Zacks Investment Research upgraded shares of Wells Fargo & from a “sell” rating to a “hold” rating in a research note on Monday, July 10th. BidaskClub upgraded Wells Fargo & from a “sell” rating to a “hold” rating in a research note on Thursday, June 29th. Finally, Deutsche Bank AG restated a “buy” rating on shares of Wells Fargo & in a research note on Monday, July 3rd. Seven analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, fifteen have assigned a buy rating and one has given a strong buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus target price of $55.96.

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In related news, insider David M. Carroll sold 27,582 shares of the stock in a transaction on Friday, June 9th. The shares were sold at an average price of $53.28, for a total transaction of $1,469,568.96. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Michael J. Loughlin sold 20,000 shares of the stock in a transaction on Thursday, June 1st. The stock was sold at an average price of $52.16, for a total transaction of $1,043,200.00. Following the sale, the insider now owns 7 shares of the company’s stock, valued at approximately $365.12. The disclosure for this sale can be found here. In the last quarter, insiders have sold 131,278 shares of company stock valued at $6,940,120. 0.22% of the stock is owned by company insiders.

About Wells Fargo &

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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