Wells Fargo & Company (NYSE: WFC): Reassessing Prospects


    BlackRock Fund Advisors has recently announced that it has increased stake in Wells Fargo & Company (NYSE:WFC) by 8.02%. After grabbing 181.12 million shares, the institutional investor is now in possession of 13.45 million shares of the Financial Company. The new investment brought the stake of investor firm to 4.40% having worth around $4.39 billion. Moreover, Dodge & Cox increased its share by 12.64 million to have a control over 103.36 million shares. And Fidelity Management & Research Co.. raised its holdings to 0.94 million shares by acquiring 85.18 million shares or 2.07% of the stake.

    Wells Fargo & Company (WFC) concluded trading on 08/27/20 at a closing price of $24.59, with 36.47 million shares of worth about $896.91 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 3.54% during that period and on Thursday the price saw a gain of about 2.29%. Currently the company’s common shares owned by public are about 4.12B shares, out of which, 4.11B shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 28 analysts are covering the WFC stock and their offered price forecasts bring an average price target of $29.82. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $65.00 and could fall to a lowest price of $21.00. Analysts also issued an outlook of 3.00 for the Wells Fargo & Company stock for next 12 months. The stock’s current price level is 17.26% above of average price target set by the analysts, while a rise to estimated low would result in loss of -17.1 for the stock. However, touching the estimated high of $65.00 would mean a gain of 62.17% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 76 times over the past 12 months. They bought 976,711 shares in 44 of the transactions. In 32 selling transactions, insiders dumped 360,832 shares.

    Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and Dodge & Cox Funds – Stock Fund are the top 3 mutual funds which are holding stakes in Wells Fargo & Company Vanguard Total Stock Market Index is currently holding 104.89 million shares of worth totaling $2.54 billion. The company recently came selling -0.19 million shares which brought its stake up to 2.55% of the company’s outstanding shares. Vanguard 500 Index Fund sold -0.51 million shares, after which its hold over company’s outstanding shares shrunk to 1.87%, leaving 76.93 million shares with the mutual fund that have a worth of about $1.87 billion. Dodge & Cox Funds – Stock Fund, after buying 62.94 million shares, have now control over 1.53% of the stake in the company. It holds 7.75 million shares of worth $1.53 billion.

    Wells Fargo & Company (NYSE: WFC) started trading at $23.99, below -$0.05 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $24.59, or with a gain of 2.29%. Stock saw a price change of 3.54% in past 5 days and over the past one month there was a price change of -4.62%. Year-to-date (YTD), WFC shares are showing a performance of -54.29% which decreased to -45.92% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $22.00 but also hit the highest price of $54.75 during that period. While comparing its average daily trading volume of 47.19 million shares, we see that about 36.47 million changed hands on the day. The stock is currently trading 0.41% above its 20-day simple moving average (SMA20), while that difference is down -2.68% for SMA50 and it goes to -32.06% lower than SMA200.

    BlackRock Fund Advisors acquired 181.12 million shares of Wells Fargo & Company having value of about $4.39 billion. Data submitted at the U.S SEC by BlackRock Fund Advisors revealed that the firm now holds 13.45 million shares in the company valued at close to $330856040.18, or have control over 8.02% stake in the company. Wells Fargo & Company (NYSE: WFC) currently have 4.12B outstanding shares and institutions hold larger chunk of about 69.70% of that. Holding of mutual funds in the company is about 34.38% while other institutional holders and individual stake holders have control over 35.05% and 12.18% of the stake respectively.

    The stock has a current market capitalization of $101.78B and its 3Y-monthly beta is at 1.11. PE ratio of stock for trailing 12 months is 28.10, while it has posted earnings per share of $0.88 in the same period. Its PEG reads 7.31 while making debt-to-equity ratio of 1.46. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for WFC, volatility over the week remained 2.70% while standing at 2.84% over the month.

    Analysts are in expectations that Wells Fargo & Company (WFC) stock would likely to be making an EPS of $0.35 in the current quarter, while forecast for next quarter ESPS is $0.29 and it is $2.09 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.02 which is $0.6 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.92 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -6.00% while it is estimated to increase by 18900.00% in next year. EPS is likely to grow at an annualized rate of 3.84% for next 5-years, compared to annual growth of -0.20% made by the stock over the past 5-years.

    Analysts at 28 brokerage firms have issued recommendations for the Wells Fargo & Company (WFC)’s stock and average of those rates the stock at a “Hold” and assign it a score of 3.00. Out of those 28 Wall Street analysts, 5 recommended a “Buy” rating, while 17 were in favor recommending the stock as a “Hold” and 5 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Atlantic Equities on July 22, 2020 offering a Neutral rating for the stock and assigned a target price of $30 to it. Coverage by Evercore ISI stated Wells Fargo & Company (WFC) stock as an Outperform in their note to investors on July 15, 2020, suggesting a price target of $27 for the stock. On July 10, 2020, Robert W. Baird Upgrade their recommendations, while on July 09, 2020, Wolfe Research Upgrade their ratings for the stock with a price target of. Stock get a Neutral rating from Seaport Global Securities on July 08, 2020.


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