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Wells Fargo CFO Sells at Record High

January 28, 2014 | About:
Monica Wolfe

Monica Wolfe

119 followers
Over the past week CFO and Executive VP Timothy Sloan sold a total of 75,000 shares of Wells Fargo as the company’s price hit a record high.  The CFO sold these shares approximately $45.84 per share for a total transaction amount $3,438,000.  Since his buy the price per share has dropped a slight -0.31%.  Despite dropping a large number of shares Sloan still holds on to at least 314,873 shares of the company’s stock, representing less than a 1% stake in the company.

Also in an employee stock plan on Jan. 17, Sloan bought 246,011 shares of Wells Fargo stock for $13.05 per share, then turned around and sold them for $46.39 per share. 

Jonathan Moreland, the director of research for Insider Insights, noted that Wells Fargo’s shares have jumped 70% over a two-year time period. He also states that the company’s “fundamentals and valuations do not appear stretched at all even after Wells Fargo’s run and arguably any pullback is a buying opportunity in this stock.”

Sloan’s sell this week is the largest insider sell reported for the company since Wells Fargo CEO John Stumpf sold 300,000 shares on Oct. 30, 2013. 

Number of Insider Trades Chart:

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Insider Volume Chart:

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Wells Fargo a financial services company, which provides retail, commercial and corporate banking services through banking stores.  The company expanded its business, in part, by acquiring banking institutions and other companies engaged in activities that are financial in nature. Wells Fargo continues to explore opportunities to acquire banking institutions and other financial services companies and discussions related to possible acquisitions might occur at any time.

Wells Fargo’s historical revenue and net income:

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Wells Fargo is often recognized as one of Berkshire Hathaway’s (BRK.B) “big four” investments. In fact Warren Buffett (Trades, Portfolio)’s company is the largest shareholder of WFC.

The GuruFocus analysis on Wells Fargo reports that the company’s price is sitting near its 10-year high, its operating margin is expanding and its dividend yield is close to a 3-year high.

Wells Fargo recently released its fourth quarter and full-year financials which reported the following.

Full-Year results:

  • Net income up 16% from 2012 to $21.9 billion.
  • Diluted EPS up 16% to $3.89.
  • Revenue down from $86.1 billion to $83.8 billion.
  • Returned $11.4 billion to shareholders through dividends.
Fourth Quarter results:

  • Net income of $5.6 billion, up 10% from last year.
  • Diluted EPS up 10% to $1.00 per share.
  • Revenue down from $21.9 billion to $20.7 billion.
  • Efficiency ratio of 58.5%, up 30 basis points.
As of the most recent portfolio updates combined with the third quarter portfolio holdings of the gurus there are 39 gurus that hold a position in Wells Fargo.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Wells Fargo has a market cap of $239.83 billion.  Its shares are currently trading at around $45.53 with a P/E ratio of 12.00, a P/S ratio of 2.87 and a P/B ratio of 1.60.  The dividend yield of Wells Fargo stocks is at 2.53%, and the company had an annual average earnings growth of 3.70% over the past ten years.

Check out more information on Wells Fargo and their insider transactions here.

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Rating: 3.8/5 (11 votes)

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