Thread regarding Wells Fargo & Co. layoffs

And the stock is currently $1 over where it was six months ago.

Thanks for all your hard work, Charlie! 🙄

Whenever they stop buying, the stock comes right back down.

But Cramer just said to buy WF stock..

30 billion will buy roughly over 650 million shares. Also take into account price will go up as they buy blocks of shares. Also note if they do it all buy ex dividend date Aug 4th it will save another roughly 200 plus million in dividend payments for this quarter alone. Just food for thought. They bought 4 billion worth of shares in q1 and q2. This is exciting news all shareholders should be thrilled.

Side note: if you're employed by WF and you own WF stock, LMFAO@U.

That's just bad financial practice.

Stock's up $0.96. Woot!!!

The end of Wells Fargo is near. God Bless.

OP here:

Long term employee of the bank. Flat the stock.

Do the research yourselves. My post is pretty basic. I purposely did not even delve in to how stock-based incentives make up the majority of our executives’ pay and how they will personally profit from this buyback, because I wanted to keep it (fairly) clean.

The executives DO have their 10b51 plans set up and ready to sell in to strength. Betting that some sold on the opening because they know the pop is temporary.

I’m not out here calling people names and playing with the votes. IMO, those who are frantically doing so appear be the ones with the biased agenda. How much stock could you own that you would react so desperately to my little post??

I am who added the comment below from McKinsey (a company Wells pays Billions of $ per year to for their advice) about the shareholder value in dividends vs share buybacks.

Do I think our Leadership and Governance Team are a bunch of incompetent self-serving oafs? Absolutely!!

$30 Billion at the current stock price is roughly 1/10th of the float. There's no way WF is taking 1/10th of the float off the market. This announcement is pure pump and dump.

Those who think buybacks are universally bad do not deserve to work at any financial institution. Perhaps WFC has no business issuing the buyback BUT some of the reasoning here is too Elizabeth Warren-ish.

To those lacking this specific knowledge, read up on the topic from unbiased sources. Don’t trust the people on the board. For all you know, they’re short WFC.

Troll post!

Total corporate smoke show. It should be illegal.. ethically and morally it’s completely bankrupt.👎🏼

Wells Fargo’s own consulting firm, McKinsey, on share buybacks:

April 4, 2023
Executives , investors, and the media often perpetuate the idea that repurchasing shares creates more value than paying dividends does. This can’t be further from the truth. Share repurchases may increase a company’s earnings per share, but for a fairly valued company, they don’t necessarily translate into higher value than seen with dividend payments. Let’s say your company earns $100, has a P/E of 15 on core earnings, and can distribute $100 in excess cash earned as either dividends or share repurchases.

Dividend payments. If your company pays out dividends, its equity value will be $1,500. Shareholders will have received $100, so the total value to the shareholders will be $1,600. On a per share basis, the share price will be $15. Since each share will also have received $1 in dividends, the total value and cash per share will be $16.
Share repurchases. If your company pays out its earnings by repurchasing shares, its equity value will be $1,500, and shareholders will have received $100. On a per share basis, for those shareholders who don’t sell, each remaining share will increase in value to $16 because of the lower share count. For an individual (remaining) share, this is economically equivalent to having a share worth $15 plus $1 from a dividend.

There is no difference in value between share repurchases and dividend payments.
We strive to provide individuals with disabilities equal access to our website. If you would like information about this content we will be happy to work with you. Please email us at: McKinsey_Website_Accessibility@mckinsey.com
Note that earnings per share increase mechanically; it has nothing do to with underlying value creation. If your company pays out a dividend, shareholders retain their shares and receive cash. If your company repurchases shares, the selling shareholders receive cash, and the remaining shareholders have shares with higher value (but they don’t receive any cash). Overall, there is no change in underlying value, just a change in the mix of shareholders.

Don't have any. I exchange my 401k match immediately every January into my other investments.

Post ID: @wxr+1nNpivBv

Not biased: Fact-based. The key word are “temporary” and “short-term” . Educate yourself.

Yes, take advice from a biased anonymous post.

The buybacks do add value to shareholders. Less shares equals higher EPS. Also equals less total dividends needed to be paid.