On May 4, 2023 at 09:37:17 ET an unusually large $594.66K block of Put contracts in Wells Fargo (WFC) was bought, with a strike price of $30.00 / share, expiring in 260 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 4.72 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in WFC options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 3173 funds or institutions reporting positions in Wells Fargo. This is an increase of 25 owner(s) or 0.79% in the last quarter. Average portfolio weight of all funds dedicated to WFC is 0.73%, a decrease of 5.26%. Total shares owned by institutions increased in the last three months by 0.42% to 3,343,375K shares. The put/call ratio of WFC is 1.18, indicating a bearish outlook.

Analyst Price Forecast Suggests 29.16% Upside

As of April 24, 2023, the average one-year price target for Wells Fargo is 49.92. The forecasts range from a low of 41.41 to a high of $68.25. The average price target represents an increase of 29.16% from its latest reported closing price of 38.65.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Wells Fargo is 82,578MM, an increase of 12.73%. The projected annual non-GAAP EPS is 5.15.

What are Other Shareholders Doing?

Dodge & Cox holds 118,722K shares representing 3.15% ownership of the company. In it’s prior filing, the firm reported owning 121,626K shares, representing a decrease of 2.45%. The firm decreased its portfolio allocation in WFC by 9.31% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 115,813K shares representing 3.08% ownership of the company. In it’s prior filing, the firm reported owning 113,136K shares, representing an increase of 2.31%. The firm decreased its portfolio allocation in WFC by 2.95% over the last quarter.

Price T Rowe Associates holds 90,102K shares representing 2.39% ownership of the company. In it’s prior filing, the firm reported owning 105,622K shares, representing a decrease of 17.22%. The firm decreased its portfolio allocation in WFC by 14.02% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 88,088K shares representing 2.34% ownership of the company. In it’s prior filing, the firm reported owning 85,984K shares, representing an increase of 2.39%. The firm decreased its portfolio allocation in WFC by 3.11% over the last quarter.

DODGX – Dodge & Cox Stock Fund holds 79,206K shares representing 2.10% ownership of the company. In it’s prior filing, the firm reported owning 80,039K shares, representing a decrease of 1.05%. The firm decreased its portfolio allocation in WFC by 8.93% over the last quarter.

Wells Fargo Declares $0.30 Dividend

On April 25, 2023 the company declared a regular quarterly dividend of $0.30 per share ($1.20 annualized). Shareholders of record as of May 5, 2023 will receive the payment on June 1, 2023. Previously, the company paid $0.30 per share.

At the current share price of $38.65 / share, the stock’s dividend yield is 3.10%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.88%, the lowest has been 0.72%, and the highest has been 8.30%. The standard deviation of yields is 1.81 (n=237).

The current dividend yield is 0.12 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.31. 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 -0.41%.

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.

See all Wells Fargo regulatory filings.

This article originally appeared on Fintel

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