2024-07-03 04:20:59 ET
Summary
- Wells Fargo has surged to near all-time highs while still facing asset cap restrictions and limited capital returns to shareholders.
- Due to the Fed stress test results, the large bank announced an increase in stress capital buffer while still hiking the dividend to $0.40.
- Despite being relatively cheap, the stock is trading close to peak price-to-tangible book value and may not produce market-beating returns in the near future.
In an unexpected move, Wells Fargo ( WFC ) has soared to $60 and near all-time highs. The large bank still faces asset cap restrictions from the Fed and huge capital restrictions preventing aggressive capital returns to shareholders. My investment thesis is more Neutral on the stock after the big rally from below $40 at the end of last year to over $60 now....
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For further details see:
Wells Fargo: Easy Gains Over (Rating Downgrade)