Wall Street Doesn’t Hate Wells Fargo & Company (WFC) Anymore

Wells Fargo & Company (WFC) will probably climb 21.04 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $69-month high price target. This represents a whopping 44.14 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $59, which represents a return potential of 23.25 percent when compared to the closing price of the stock of $47.87 on Friday, January 11. The lowest price target for the stock is $48 — slightly more than 0.27 percent from WFC’s current share price.

The stock is currently hovering around the first support level of $47.34. Below this, the next support is placed in the zone of $46.8. Till the time, the WFC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 49.5 on daily chart, which may remain a cause for concern. If the price breaks below $46.8 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $48.25 mark may result into a pull-back move towards $48.62 level.

On 11th of January, Wells Fargo & Company (NYSE:WFC) shares ended higher after a volatile session. The shares accumulated 0.12 points or 0.25 percent at $47.87 with a light trade volume of 19.901 million shares. After opening the session at $47.5, the shares went as high as $48.09 and as low as $47.18, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $229 billion and now has 4.78 billion shares outstanding. Wells Fargo & Company (WFC) stock has gained 0.23 percent of market value in 21 trading days.

WFC stock has a trailing 3-year beta of 1.11, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.77 a share in the trailing twelve months. The stock’s value has surged 3.88 percent year to date (YTD) against a decline of -24.16 percent in 12 month’s time. The company’s shares still trade -27.81 percent away from its 1-year high of $66.31 and 11.27 percent up from 52-week low of $43.02. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Wells Fargo & Company (WFC) are trading at a P/E ratio of 14.1 times earnings reported for the past 12 months. The industry WFC operates in has an average P/E of 18.6. Its P/E ratio went as low as 11.67X and as high as 16.78 over the 5-year span. Further, it is sporting a 3.66 on the Price-to-Sales ratio. Compare this with the industry average P/S of 7.82. 0 percent is the gross profit margin for Wells Fargo & Company and operating margin sits at 76.3 percent. Along with this, the net profit margin is 33.3 percent.

Let’s take a look at some insider activity at Wells Fargo & Company (NYSE:WFC) and see the pattern. The earliest insider trade took place on 08/17/2018. Modjtabai Avid parted with a total of 100 thousand shares of company at average share price of $58.71. The total for the sales was set at $5.87 million. After this transaction, the Sr. Executive Vice President account balance stood at 394.11 thousand shares. The stock lost -18.46 percent since that insider sale. On 08/13/2018, Hardison Hope A., Sr. Executive Vice President, sold 25 thousand shares at a price per share of $58.01. This removed 1.45 million shares from the insider’s fortune and the stock saw a -17.48 percent retreat in value since the news became public. This transaction left 120.65 thousand shares in the Sr. Executive Vice President account.

On 05/24/2018, Sr. Executive Vice President Pelos Petros G performed a sale transaction worth $1.4 million. This sale at $54.76 each has eliminated 25.57 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -12.58 percent decrease since the transaction was reported. The insider now is left with 89.64 thousand shares remaining in the account. Sargent Ronald, who performs the Director job, bought 9 thousand shares for $503.82 thousand. The acquisition occurred on 02/12/2018 was priced at $55.98 per share. The share price plunged -14.49 percent since the reporting date. Sargent Ronald now left with a stake of 18.13 thousand WFC stock worth $867.93 thousand after the insider buying.