Wells Fargo (WFC) Shares Gain On $40B Buyback Plan: What's Going On?

Wells Fargo & Co WFC shares are trading higher by 1.48% to $70.42 during Tuesday’s session after the company unveiled a new $40 billion stock repurchase program, set to commence after the current buyback concludes.

What To Know: The board's approval likely signals continued confidence in the bank's capital strength and financial stability. CEO Charlie Scharf emphasized that the company's balance sheet remains robust, with average common shares outstanding reduced by 22% since 2019.

The $40 billion authorization represents one of the largest buyback programs among major U.S. banks, suggesting the firm sees its stock as undervalued and is prioritizing shareholder value creation. Such repurchase initiatives typically reduce share count, boosting earnings per share and investor appeal.

Coupled with consistent dividends, these actions may encourage bullish sentiment and upward price movement in WFC stock. Analysts and investors may also interpret the announcement as a vote of confidence in Wells Fargo's long-term earnings growth and capital position amid ongoing efforts to improve operational efficiency across its banking segments.

Read Also: What’s Going On With Snap Stock Tuesday?

How To Buy WFC Stock

By now you're likely curious about how to participate in the market for Wells Fargo – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Wells Fargo, which is trading at $70.09 as of publishing time, $100 would buy you 1.43 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, WFC has a 52-week high of $81.50 and a 52-week low of $50.15.