Should You Consider Investing in Wells Fargo & Company (WFC)?

Oakmark Funds, an investment management company, released its “Oakmark Select Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. The fund declined 5.9% in the third quarter, roughly in line with the S&P 500 Index. For the fiscal year ended September 30, 2022, the fund fell 23.6% compared to a 15.5% decline for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Oakmark Funds discussed stocks like Wells Fargo & Company (NYSE:WFC) in the Q3 2022 investor letter. Headquartered in San Francisco, California, Wells Fargo & Company (NYSE:WFC) is a financial services company. On October 11, 2022, Wells Fargo & Company (NYSE:WFC)  stock closed at $40.23 per share. One-month return of Wells Fargo & Company (NYSE:WFC) was -6.92% and its shares lost 13.76% of their value over the last 52 weeks. Wells Fargo & Company (NYSE:WFC) has a market capitalization of $152.594 billion.

Here is what Oakmark Funds specifically said about Wells Fargo & Company (NYSE:WFC) in its Q3 2022 investor letter:

Wells Fargo & Company (NYSE:WFC) has been a long-time holding in the Oakmark Fund. Despite the positives of higher interest rates and the company making good progress on reducing expenses and regulatory consent orders, Wells Fargo shares have fallen one-third from their highs earlier this year to roughly 6.5x our estimate of normalized earnings power, and the stock ended the quarter at ~1x next year’s tangible book value. We find this is far too cheap for a strong banking franchise capable of tangible returns in the low-to-mid teens across business cycles.”

Wells Fargo, Building

Photo by Erol Ahmed on Unsplash

Wells Fargo & Company (NYSE:WFC) is in 30th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held Wells Fargo & Company (NYSE:WFC) at the end of the second quarter, which was 93 in the previous quarter.

We discussed Wells Fargo & Company (NYSE:WFC) in another article and shared the top 10 stock picks of Dmitry Balyasny’s hedge fund. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.


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Disclosure: None. This article is originally published at Insider Monkey.