Wells Fargo & Company (WFC) shares are trading slightly higher on Friday after the company announced quarterly dividends on several of its preferred stock series. The dividends are payable on December 16, 2024, and investors must be on record by November 29th to qualify. The stock has seen strong performance in the past year, fueled by investor optimism surrounding potential economic benefits under the Trump administration.
Bank of America Securities analyst Ebrahim H. Poonawala raised his price target on Wells Fargo & Company (WFC) to $84, citing the bank’s progress in achieving high-teens return on average tangible common equity (ROTCE). The analyst believes the removal of the 2018 asset cap in early 2025 will be a significant catalyst for the stock, attracting new investors and potentially driving a re-rating of its valuation.
Wells Fargo’s shares rose on Friday after the bank reached an agreement with the Office of the Comptroller of the Currency (OCC) regarding its anti-money laundering (AML) and sanctions risk management practices. While the agreement requires enhancements to the bank’s AML practices, analysts believe it will not significantly impact Wells Fargo’s 2024 expense outlook or hinder its growth. The agreement is separate from the Federal Reserve’s 2018 Cease and Desist order, which focuses on consumer banking issues.
