When looking at valuations, Wells Fargo & Company (WFC) has a cheap P/E of 12.69x as compared to industry average of 19.01x. It trades for 9.52 times the next 12 months of expected earnings. It is trading at rather expensive levels at just over 1.31x price/book and 3.66x price/sales. Compared to others, Wells Fargo & Company is in a different league with regards to profitability, having net margins of 33.3%. To put some perspective around this, the industry’s average net margin is 29.87%. WFC’s ROE is 11.7%, which is considerably worse than the industry’s ROE of 16.14%.
Wells Fargo & Company (NYSE:WFC) is now worth $229.01B thanks to 0.25% gain in recent trade and currently has a price tag of $47.87. The shares traded as low as $47.18 and had $48.09 an intraday high earlier Friday. Trading activity significantly weakened as the volume at ready counter decreased to 19,900,843 shares versus 26,333,904 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 20,314,338 shares. The stock is now 11.27% above against its bear-market low of $43.02 on December 26, 2018. It has retreated -38.52% since it’s 52-week high of $66.31 reached in January. Now the market price is down -24.16% on the year and up 3.88% YTD.
WFC’s 50 day simple moving average (SMA 50) price is $50.08 and its 200-day simple moving average (SMA 200) price is $53.68. The company’s stock currently has a total float of 4.7B shares. Its weekly volatility is hovering around 1.9% and felt 2.8% volatility in price over a month. On the upside, the share price will test short term resistance at around $48.25. On a downside, the stock is likely to find some support, which begins at $47.34. The failure to get near-term support could push it to $46.8.
Separately, it has been reported that multiple insider activity took place at Wells Fargo & Company (WFC). Sr. Executive Vice President Modjtabai Avid sold 100,000 shares for $394,109 in transaction occurred on 2018/08/17. After making this transaction, the Sr. Executive Vice President owns a direct stake of 5,871,000 shares, worth $18,865,998, as per the last closing price. On 2018/08/13 Hardison Hope A., Sr. Executive Vice President at WFC, dumped 25,000 shares at an average price of $58.01 per share. The selling total is valued at $5,775,563.
Sr. Executive Vice President, Pelos Petros G had divested 25,567 shares for $89,639 through a trade on 2018/05/24. Following this activity, the insider holds 1,400,049 shares worth $4,291,019 as of recent close. Wall Street’s most bullish Wells Fargo & Company (NYSE:WFC) analysts are predicting the share price to blow past $69 per share during the next 12 months. The current median share price forecast by them is $59, suggesting that the stock could increase 23.25% in that time frame. The average price target of $58.78 calls for a nearly 22.79% increase in the stock price.
It had seen a positive analyst call from RBC Capital Mkts, which upgraded the stock from Underperform to Sector Perform on January 02. Analysts at Barclays, maintained the company shares at Overweight on January 02 but switched target price from $66 to $64. The stock won favor of Citigroup analysts who expressed their confidence in it using an upgrade from Neutral to Buy on November 02.
Shares of Wells Fargo & Company (WFC) have dropped -6.9% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, Wells Fargo & Company (NYSE:WFC) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 4 quarters (33%), whereas at 1 occasion EPS met analyst expectations. WFC last reported earnings on October 12, 2018 when it released Sep-18 results that receded expectations. The company raked in $1.16 per share, 9.43% change on the same period last year. That was worse than consensus for $1.17. Revenue for the recent quarter stood at $21.94 billion, down 0% on last year and below the $21.9 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $20.73 billion to $22.3 billion, which should be compared with $22.81 billion generated last year. EPS is seen in a range of $1.21 to $1.38, against the $1.18 reported a year ago.