Ogg January 27, 1: WFC is currently the king of banks by market cap, and it also is the bank trading at the largest premium to its book value.

Wells Fargo Ups Share Buybacks

So what are investors supposed to think of a Wells Fargo expanded buyback? The reality is that Wells Fargo has promised frequently to do more share buybacks and to keep returning capital to its shareholders. Its aim in buybacks is to increase its earnings per share after the float shrinks and to return capital lots and lots of it to shareholders.

As far as a percentage of the 5. Effectively it might mean that Wells Fargo is buying back more stock than any single shareholder, other than Warren Buffett via the Berkshire Hathaway stake of The largest shareholders as of September 30 were listed as follows:.

Wells Fargo shares have one thing in common with other major banks: They differ in that most banks now trade at discounts to book value, while Wells Fargo is at one of the few real premiums to book value, explained because the bank is not involved in the risky derivatives and extensive financial market trading operations that so many rivals were involved in before, during and after the financial crisis.

Wells Fargo also has suffered less on settlements as a result of its non-market efforts, but investors do need to consider that Wells Fargo is now the largest exposed to the U.

This is one of those buybacks that will continue long after this plan expires.

At least that is the case barring another financial crisis. Free Daily Newsletter Subscribe. Popular 50 Worst American Cities to Live In College Majors With Highest and Lowest Unemployment States With the Highest and Lowest Property Taxes The Best Counties to Live In The Worst Companies to Work For.

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