Boston, MA 01/29/2014 (wallstreetpr) – Wells Fargo & Company (NYSE:WFC) seems to be on the positive track as it has declared fourth quarter earnings of $1 per share on revenue of $20.67 billion and it has also announced a quarterly dividend of 30 cents a share, giving a reason for its investors to cheer. Wells Fargo is one of the leading bank holding company and rightfully so as they are key operators in three segments of banking being Community banking, wholesale banking and wealth, brokerage and retirement.
Wells Fargo revival story
When the big banks including Wells Fargo & Company (NYSE:WFC) took a Government bailout in 2008 it almost seemed like an end of the road for such banks but the people at Wells Fargo maintained that they did not “need” Government bailout but were accepting it for the good of the financial system as a whole. This theory put out by Wells Fargo appeared like a lame excuse at that time and the losses posted by Wells Fargo in the fourth quarter of 2008 did not ring true the excuse made by it. However, after 2008’s financial rescue, Wells Fargo has posted profits each and every year emphasizing the fact that they indeed were strongly capable of handling their own financial affairs and issues. Even the treasurer at the time of the financial crisis of 2008, Hank Paulson, admitted later on that Wells Fargo never needed capital injection but even then it took Government bailout at the behest of the Treasury.
Take over’s by Wells Fargo
One major reason behind Wells Fargo & Company (NYSE:WFC)’s continuous success is the acquisitions it has made. Wells Fargo’s acquisition of its competitor, Wachovia, helped Wells Fargo in extending its retail reach to include East coast centric locations which were being operated by Wachovia. Wells Fargo has managed to grow at the cost of its competitors and it has now almost doubled in its size. Wells Fargo has been successful in revamping the businesses acquired by it which has helped tremendously in its overall growth and development.
Benefits of investing in Wells Fargo
There are many benefits of investing in the stock of Wells Fargo & Company (NYSE:WFC) as the earnings of Wells Fargo have improved considerably compared to the same quarter last year and even the gross profit margins of Wells Fargo have increased over the years making it a profitable stock. The share prices of Wells Fargo have risen over the years as most analysts in the market have kept a “Buy” rating for Wells Fargo’s shares.
Conclusion
Wells Fargo has always maintained a steady growth and good profit margins benefitting its investors in the long run. Wells Fargo CFO Timothy Sloan sold 75,000 shares of the company’s stock soon after it hit its all-time high and earned $3.44 million in revenue by it which goes to show how profitable Wells Fargo shares have been in the market. Furthermore, the business and investment sense at Wells Fargo & Company (NYSE:WFC) has always been good as Wells Fargo didn’t engage in speculation during the financial crisis even when its competitors were doing it and instead it preferred to rely on its core business of taking deposits and making loan which helped it in surviving through the whole financial crisis debacle which ruined most of the banks at that time proving the intrinsic worth of Wells Fargo & Company (NYSE:WFC) as strong and valuable bank which is made to last for a long haul.
