How Wells Fargo & Company (WFC) Works From A Technical Perspective

Wells Fargo & Company (NYSE:WFC) finished Tuesday with an addition of $0.94 to close at $47.96, an upside of 2.00 percent. An average of 21,052,920 shares of common stock have been traded in the last five days. There was a gain of $2.04 in the past week. The last 20 days have seen an average of 27,430,510 shares traded, while the 50-day average volume stands at 26,740,352.

WFC stock has increased by 8.58% in the last month. The company shares reached their 1-month lowest point of $43.63 on 09/08/21. With the stock rallying to its 52-week high on 08/13/21, shares of the company touched a low of $20.76 and a high of $51.41 in 52 weeks. In spite of this, the price is down -6.71% from the 52-week high.

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Valuation Metrics

Wells Fargo & Company (WFC) has a trailing price-to-earnings (P/E) ratio of 13.90, which compares with the 16.80 for the broader industry and 12.69 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, Wells Fargo & Company’s PE ratio has ranged between 1517.50 and 6.281. The stock’s beta is 1.29. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.74, the price-to-book (PB) ratio at 1.16.

Wells Fargo & Company pays a $0.80 dividend per share annually. It offers a dividend yield of 1.67%. The company has a payout ratio of 11.50%. The company’s most recent quarterly dividend payment took place on Sep. 1 , and it was $0.20 a share, representing a up of 50.0 from $0.10 last year. Its dividend has been increased for the last 1 consecutive years with the latest increase dividend $0.10 reported on Tuesday July 27 2021. Dividends have grown by -20.78% each year over the last three years.

Wells Fargo & Company will next go ex-dividend on 8-Nov. The next dividend payment Wells Fargo & Company will make is expected to be $0.20.

Further, the company has a long term debt to equity ratio of 1.05 and a total debt to equity ratio of 1.05 for the quarter ending June 29. Its gross profit as reported stood at $39.84 billion compared to revenue of $47.8 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Wells Fargo & Company’s return on assets was 0.70%, compared to 0.9% over the last five years. Meanwhile, the return on equity (ROE) for the past 12 months has been 8.70% and the 5-year average holds at 9.3%. For the broader industry, ROE averaged 11.10 over the past year.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Wells Fargo & Company (WFC) price momentum. RSI 9-day as of the close on 05 October was 60.78%, suggesting the stock is Neutral, with historical volatility in this time frame at 27.93%.

As of today, WFC’s price is $47.09 +4.44% or $2.04 from its 5-day moving average. WFC is currently trading +8.24% higher than its 20-day SMA and +3.36% higher than its 100-day SMA. However, the stock’s current price level is +6.55% above the SMA50 and +62.74% above the SMA200.

The stochastic %K and %D were 60.81% and 54.04%, respectively, and the average true range (ATR) was 1.33. With the 14-day stochastic at 76.10% and the average true range at 1.32, the RSI (14) stands at 57.02%. The stock has reached 0.15 on the 9-day MACD Oscillator while the 14-day reading was at 0.47.

Analyst Ratings

Morgan Stanley downgraded Wells Fargo & Company (NYSE: WFC) to a an Equal-weight rating in its most recent analyst report. Previously, the stock was rated as a an Overweight.The consensus rating for Wells Fargo & Company (WFC) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell WFC, while 12 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 4 analysts, while 11 others rate it as a “buy”.

What is WFC’s price target for the next 12 months?

Analysts predict a range of price targets between $43.00 and $65.00, with a median target of $50.00. Taking a look at these predictions, the average price target given by analysts for Wells Fargo & Company (WFC) stock is $51.16.


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