Wells Fargo & Co $ 31.38 -0.86 (-2.67%)
Wells Fargo & Co News and Headlines -
The Dow Jones Industrial Average closed at 30,814.26 on Friday with a loss of 177.26 points or -0.57%. The S&P 500 closed at 3,768.25 for a loss of 27.29 points or -0.72%. The Nasdaq Composite closed at 12,998.50 for a loss of 114.14 points or -0.87%. The VIX Volatility Index was higher at 24.34 for a gain of 1.09 points or 4.69%.
For the week, the Nasdaq and S&P 500 were down around 1.5%. The Dow Jones had a loss of -0.90%. For the year, the S&P 500 has a gain of 0.3%, the Nasdaq has a gain of approximately
Shares of banking giant Wells Fargo & Co. (WFC) fell after it reported fourth-quarter and full-year 2020 results before the opening bell on Friday.
The San Francisco-based company posted earnings of 64 cents per share for the three months ended Dec. 31, topping Refinitiv's estimate of 60 cents by a slim margin. Wells Fargo noted its earnings were affected by a $781 million restructuring charge, a reserve release of $757 million due to the sale of its student loan portfolio and a $321 million hit due to the "impact of customer remediation accruals."
The bank's revenue declined from the prior-year
The Dow Jones Industrial Average closed at 30,991.52 on Thursday with a loss of 68.95 points or -0.22%. The S&P 500 closed at 3,795.54 for a loss of 14.30 points or -0.38%. The Nasdaq Composite closed at 13,112.64 for a loss of 16.31 points or -0.12%. The VIX Volatility Index was higher at 23.28 for a gain of 1.07 points or 4.82%.
Thursday's market movers
The major U.S. indexes ended with losses on Thursday. Joe Biden is scheduled to discuss his detailed plans for more Covid-19 stimulus on Thursday evening. Reports suggest that the plan will include $1,400 more in
The fourth-quarter 2020 earnings season will officially start this coming Friday with a few major banks set to report. Citigroup Inc. (C), JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC) and PNC Financial Services Group Inc. (PNC) will all report earnings before the opening bell on Jan. 14, and the expectations have consistently gone up for the financial services industry as the U.S. economy gained steam in the second half of 2020. There are many promising signs, but investors need to remain cautious and be selective when shopping for bargains.
Revenue growth is finally set to turn positive
The skills required to manage a business and invest are relatively similar. Business owners and managers have to juggle many different skill sets. From financial management to crisis resolution and human resources, owners and operators must learn how to manage their operations effectively.
One can take these skills and use them when investing. For example, I think it is extremely helpful, perhaps essential, that every investor should have a basic grasp of accounting at the bare minimum. They should also understand what makes a business tick, its strengths and weaknesses, management skills, etc.
Most successful business managers and operators will
Dodge & Cox disclosed its third-quarter portfolio in mid-November, revealing that its top five trades included increased bets in Wells Fargo & Co. (WFC) and Raytheon Technologies Corp. (RTX) and position reductions in FedEx Corp. (FDX), Microsoft Corp. (MSFT) and Goldman Sachs Group Inc. (GS).
Through a nine-member investment policy committee, the San Francisco-based firm seeks long-term capital appreciation by investing in the stock of companies where the valuations are low and do not reflect long-term earnings and cash flow prospects.
As of the end of the third quarter, the firm's $109.28 billion equity
Charles de Vaulx (Trades, Portfolio) has revealed IVA Worldwide Fund's portfolio for the third quarter. Top trades of the quarter include new buys in Wells Fargo & Co. (WFC) and Heineken NV (XAMS:HEIA) alongside reductions in Berkshire Hathaway Inc. Class A shares (BRK.A) and LKQ Corp. (LKQ).
De Vaulx is the chief investment officer and portfolio manager at International Value Advisers, LLC, which he joined in 2008. He employs a value oriented approach and will seek investments in companies of any size. His investments typically have financial strength, temporarily depressed earnings or entrenched franchises.
Third-quarter 13-F filings of major investment management companies have been hitting the market over the last couple of weeks.
Investors monitor these regulatory filings not only to find lucrative investment ideas that are loved by gurus but also to gauge a measure of market sectors that are going out of favor among the best brains in the industry.
From my analysis of the recently-submitted documents that I have read, many gurus have divested large portions of their holdings in the financial services sector during the third quarter. The notable guru sells that I want to highlight are listed below:
The Dividend Stocks screener at GuruFocus finds 616 dividend stocks held by the gurus as of the writing of this article. Another 19 are listed as over-the-counter stocks.
The output from the screener can be sorted in several ways. I've sorted by the largest number of gurus buys in the previous quarter. According to this search, Wells Fargo & Co (WFC), Pfizer Inc (PFE) and AbbVie Inc (ABBV) are the most popular dividend stocks among gurus. In other words, these are the three companies with good dividends that had the highest number of guru buys in the quarter ended
A short time ago, the Daily Journal Corporation (DJCO), where Charlie Munger (Trades, Portfolio) sits as Chairman, reported its 13F with the SEC. Like all significant investment vehicles with more than $100 million in assets under management, the Daily Journal has to report its holdings every quarter.
As usual, this time around, there was no change to the portfolio, which is managed by Munger himself. This was hardly surprising, but what is notable to me is the fact that the Journal's second-largest position remains Wells Fargo (WFC).
Munger vs. Buffett
Munger and Warren Buffett (
Davis Selected Advisors recently disclosed its portfolio updates for the third quarter of 2020, which ended on Sept. 30.
Founded in 1969, Davis Selected Advisors is an employee-owned investment management firm based in Tuscon, Arizona. The current chairman, Chris Davis (Trades, Portfolio), joined the firm in 1989 and serves as the portfolio manager for the Large Cap Value Portfolios and as a research team member for other portfolios. The firm's investment strategy aims to purchase durable, well-managed businesses at value prices.
During the third quarter, the firm's biggest sells were in Amazon.com Inc. (AMZN) and Carrier Global
According to GuruFocus' list of 52-week lows, these Guru stocks have reached their 52-week lows.
The price of AT&T Inc. (T) shares has declined to close to the 52-week low of $27.02, which is 34.3% off the 52-week high of $39.70. The company has a market cap of $192.53 billion.
Its shares traded with a price-earnings ratio of 17.86 and a price-sales ratio of 1.13 as of Oct. 30. The trailing 12-month dividend yield is 7.70%. The forward dividend yield is 7.70%. The company has had an annual average earnings growth of 3.20% over
Seven months ago, in mid-March, I published an article in which I shared my thoughts on the state of financial markets. On the day I wrote it (March 18), markets had fallen by nearly 5% in the days session, and were down more roughly 30% from their highs a month earlier. While it was a chaotic time in the markets and in the world around us, I thought the appropriate course of action for an investor was to stay calm and remain focused on the long-term:
"Personally, despite "losing" more money – by far – than I ever
The fund reduced its position in Accenture PLC (ACN) by 35.61%. The trade had an impact of -1% on the portfolio.
The IT services firm has a market cap of $145.74 billion and an enterprise value of $141.54 billion.
GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 33.09% and return on assets of 15.5%
Wells Fargo & Co. (WFC) is preparing to sell its asset management business for around $3 billion as it struggles to make ends meet during the economic recession sparked by the Covid-19 pandemic. According to Reuters sources, the bank has been in talks with potential buyers, though no deal has been reached yet.
The sale will likely be made in preparation for an expected tsunami of losses from bad loans. In the second quarter, the bank booked a $2 billion loss as it set aside reserves for bad loans, and in the third quarter, it reported net income of around
There's one stock that we know both Charlie Munger (Trades, Portfolio) and Warren Buffett (Trades, Portfolio) love. Apart from Berkshire Hathaway (BRK.A) (BRK.B) and Wells Fargo (WFC), there's one business they have both repeatedly praised for its growth and unique operating model: Costco Wholesale Corp. (COST).
The favorite business
Buffett originally purchased 24 million shares in Costco for Berkshire's portfolio during the second quarter of 2000 after the stock fell 37% following the company's announcement of worse-than-expected earnings. Although the holding company has since reduced its position in the retailer, it still holds 4.33
We initiated a position in Wells Fargo (WFC). Wells Fargo is the third largest bank in the U.S., with a best in class deposit franchise and a reputation as a conservative underwriter. Due to their much publicized scandal, ensuing regulatory issues and fines the stock now trades at approximately 65% of book value while its peers trade at price to book values between 0.8 and 1.2 times. It is our expectation that when this subsides its growth and profitability should return to previous levels.
From [url=https://www.gurufocus.com/StockBuy.php?GuruName=Charles+de+Vaulx]Charles de Vaulx[/url] ([url=https://www.gurufocus.com/StockBuy.php?GuruName=Charles+de+Vaulx]Trades[/url], [url=https://www.gurufocus.com/holdings.php?GuruName=Charles+de+Vaulx]Portfolio[/url])'s IVA Worldwide Fund third-quarter 2020 commentary.
The IVA Worldwide Fund Class A (NAV) ended the quarter on September 30, 2020 with a return of 2.47% versus the MSCI All Country World Index (Net) ("Index") return of 8.13% for the same period.
The brisk market rebound which began in April continued into the third quarter. By the end of August, markets were again reaching record highs fueled by mostly favorable data throughout the summer months. The rally seemed unstoppable spurred by better than expected employment results, expectations that rates would remain lower for even longer, and encouraging prospects for an effective vaccine. Come September, volatility spiked, the
According to GuruFocus' list of 52-week lows, these Guru stocks have reached their 52-week lows.
The price of Wells Fargo & Co. (WFC) shares has declined to close to the 52-week low of $22.86, which is 59.8% off the 52-week high of $54.75. The company has a market cap of $94.47 billion.
Its shares traded with a price-earnings ratio of 60.00 and a price-sales ratio of 1.28 as of Oct. 16. The trailing 12-month dividend yield is 7.13%. The forward dividend yield is 1.75%.
Wells Fargo is one of the largest banks in
The Dodge & Cox Global Stock Fund had a total return of 2.9% for the third quarter of 2020, compared to 7.9% for the MSCI World Index. For the nine months ended September 30, 2020, the Fund had a total return of –14.6%, compared to 1.7% for the MSCI World.
Global equity markets were extremely volatile during the first nine months of 2020. In the first quarter, the coronavirus (COVID-19) evolved into a global pandemic, disrupting major economies around the world and abruptly ending the longest stock market bull run in U.S. history. Global equities fell sharply, but