Wells Fargo Bruised on Q3 Numbers

Kristopher Drake
October 14, 2017

Net income fell to $4.60 billion, or 84 cents per share for the quarter ended September 30, from $5.64 billion, or $1.03 per share, in the same quarter of 2016. Over the last six months, Wells Fargo & Company's stock has been 7.52% and 21.82% for the year. Aristotle Fund Lp sold 204,600 shares as the company's stock declined 8.66% while stock markets rallied. Moreover, Fulton Breakefield Broenniman Ltd Liability Com has 2.11% invested in Wells Fargo & Co (NYSE:WFC). Calamos Ltd Co holds 0.03% or 127,695 shares. 349.76 million shares or 2.48% more from 341.28 million shares in 2017Q1 were reported. 229,232 are held by Covington Mgmt. Gardner Russo & Gardner Llc sold 1.01M shares as Wells Fargo (WFC)'s stock declined 8.66%.

Previously on 5/15/2017, Evercore ISI reported about Wells Fargo & Company (NYSE:WFC) lowered the target price from $60.00 to $58.00. Gyroscope Mgmt Gp Limited Liability Company has invested 2.76% in Wells Fargo & Co (NYSE:WFC).

Net income in Wells Fargo's community banking segment, the largest of its three major businesses and the one most directly impacted by the sales scandal, was US$2.2 billion, down 31% from a year ago, due to the legal charge. Tower Research Capital Lc (Trc) invested 0% of its portfolio in Kansas City Southern (NYSE:KSU).

Since May 5, 2017, it had 1 insider buy, and 3 sales for $3.93 million activity. SARGENT RONALD bought 9,050 shares worth $499,108. Mack Mary T sold 38,988 shares worth $2.05M. Finally, Hotchkis & Wiley Capital Management LLC lifted its position in shares of Wells Fargo & by 49.5% in the first quarter. From the opening price, the stock has seen a change of -0.18% recently clocking in with a price of $53.41. Institutional investors and hedge funds own 75.12% of the company's stock. The stock declined 0.42% or $0.44 reaching $104.98 on the news. About 416,881 shares traded. The state of OH decided this week to extend a ban on working with the bank, and lawmakers are questioning whether Wells Fargo has paid a big enough price for its misdeeds. It has underperformed by 7.03% the S&P500.

The third-largest USA lender, which has been embroiled in a prolonged scandal over its sales practices, said the dip in earnings came largely from a US$1 billion accrual for a legal settlement over issues stemming from before the 2007-2009 financial crisis.

Wells Fargo's third-quarter profits took a beating this quarter, falling 18 percent, after the bank had to set aside about $1 billion for legal expenses related to its mortgage practices before the financial crisis. WFC's profit will be $5.23 billion for 13.19 P/E if the $1.05 EPS becomes a reality. Deutsche Bank AG reissued a "buy" rating on shares of Wells Fargo & in a research note on Monday, July 3rd. More interesting news about Wells Fargo & Co (NYSE:WFC) were released by: Bloomberg.com and their article: "Wells Fargo's Home State Aims to Curb Use of Closed-Door Arbitration" published on October 05, 2017 as well as Bloomberg.com's news article titled: "Wells Fargo CEO "Can't Promise" New Reviews Won't Find Issues" with publication date: September 12, 2017. Therefore 70% are positive. Empire Company Limited had 41 analyst reports since September 10, 2015 according to SRatingsIntel. The firm earned "Hold" rating on Friday, July 14 by Oppenheimer. The firm has "Neutral" rating given on Wednesday, January 27 by UBS. UBS maintained it with "Sell" rating and $44 target in Thursday, September 15 report. A rating of 4 or 5 would represent a Sell recommendation. The rating was initiated by Piper Jaffray with "Neutral" on Tuesday, November 24. Instinet restated a "buy" rating and issued a $64.00 price objective on shares of Wells Fargo & in a research report on Wednesday, July 12th. JP Morgan initiated Servicemaster Global Holdings Inc (NYSE:SERV) rating on Thursday, April 20.

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