10 Best Financial Stocks To Buy According to Hedge Funds

08. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 73

Number eight on our list of 10 Best Financial Stocks To Buy According to Hedge Funds is Wells Fargo & Company (NYSE:WFC). Wells Fargo & Company (NYSE:WFC) announced its latest quarter’s earnings on April 12. The company reported a normalized EPS of $1.20, exceeding expectations by $0.11. The revenue for the quarter amounted to $20.86 billion, which was a significant beat, exceeding estimates by $711.46 million. Wells Fargo plans to increase its common stock dividend by 14% to $0.40 per share for the third quarter of 2024, pending Board approval in July. The company also indicated potential common stock repurchases from the third quarter of 2024 through the second quarter of 2025, depending on market conditions and regulatory requirements. CEO Charlie Scharf highlighted the company’s strong capital position and commitment to meeting customer needs while returning excess capital to shareholders.

The number of hedge funds in Insider Monkey’s database owning stakes in Wells Fargo & Company (NYSE:WFC) grew to 73 in Q1 2024, as compared to 72 in the preceding quarter. The consolidated value of these stakes is nearly $4.42 billion. Among these hedge funds, Natixis Global Asset Management’s Harris Associates was the company’s leading stakeholder in Q1.

ClearBridge Value Equity Strategy stated the following regarding Wells Fargo & Company (NYSE:WFC) in its fourth quarter 2023 investor letter:

“Stock selection in the financials sector proved to be the largest contributor to relative outperformance. Banking stocks such as Wells Fargo & Company (NYSE:WFC) saw their share price rise during the quarter as investors anticipated Fed rate cuts that would reduce deposit costs while retaining economic strength and minimizing the risk of credit losses.”