Fintel reports that on October 16, 2023, BMO Capital maintained coverage of Wells Fargo (NYSE:WFC) with a Market Perform recommendation.
Analyst Price Forecast Suggests 26.25% Upside
As of October 5, 2023, the average one-year price target for Wells Fargo is 51.71. The forecasts range from a low of 44.34 to a high of $68.25. The average price target represents an increase of 26.25% from its latest reported closing price of 40.96.
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The projected annual revenue for Wells Fargo is 82,578MM, an increase of 7.96%. The projected annual non-GAAP EPS is 5.15.
Wells Fargo Declares $0.35 Dividend
On July 25, 2023 the company declared a regular quarterly dividend of $0.35 per share ($1.40 annualized). Shareholders of record as of August 4, 2023 received the payment on September 1, 2023. Previously, the company paid $0.30 per share.
At the current share price of $40.96 / share, the stock's dividend yield is 3.42%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.90%, the lowest has been 0.72%, and the highest has been 8.30%. The standard deviation of yields is 1.82 (n=236).
The current dividend yield is 0.29 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.28. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 2.50%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 3067 funds or institutions reporting positions in Wells Fargo. This is a decrease of 78 owner(s) or 2.48% in the last quarter. Average portfolio weight of all funds dedicated to WFC is 0.64%, an increase of 1.65%. Total shares owned by institutions decreased in the last three months by 2.59% to 3,154,338K shares. 
The put/call ratio of WFC is 1.25, indicating a bearish outlook.
What are Other Shareholders Doing?
Dodge & Cox holds 120,143K shares representing 3.30% ownership of the company. In it's prior filing, the firm reported owning 120,385K shares, representing a decrease of 0.20%. The firm increased its portfolio allocation in WFC by 11.59% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 117,013K shares representing 3.22% ownership of the company. In it's prior filing, the firm reported owning 117,445K shares, representing a decrease of 0.37%. The firm increased its portfolio allocation in WFC by 4.96% over the last quarter.
Jpmorgan Chase holds 93,102K shares representing 2.56% ownership of the company. In it's prior filing, the firm reported owning 84,307K shares, representing an increase of 9.45%. The firm increased its portfolio allocation in WFC by 795.73% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 89,341K shares representing 2.46% ownership of the company. In it's prior filing, the firm reported owning 88,915K shares, representing an increase of 0.48%. The firm increased its portfolio allocation in WFC by 3.91% over the last quarter.
Price T Rowe Associates holds 85,725K shares representing 2.36% ownership of the company. In it's prior filing, the firm reported owning 88,143K shares, representing a decrease of 2.82%. The firm increased its portfolio allocation in WFC by 133.21% over the last quarter.
Wells Fargo Background Information
(This description is provided by the company.)
Wells Fargo & Company is a leading financial services company that has approximately $1.9 trillion in assets and proudly serves one in three U.S. households and more than 10% of all middle market companies in the U.S. It provides a diversified set of banking, investment, and mortgage products and services, as well as consumer and commercial finance, through its four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. Wells Fargo ranked No. 30 on Fortune's 2020 rankings of America's largest corporations. In the communities it serves, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy.
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