Wells Fargo & Company (WFC) Shares: Are They Risky Or Cheap?

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Wells Fargo & Company (NYSE:WFC) finished Thursday with a subtraction of -$0.75 to close at $41.52, a downside of -1.77 percent. An average of 17,354,539 shares of common stock have been traded in the last five days. There was a fall of -$2.62 in the past week, and it reached a new high 24 times over the past 12 months. The last 20 days have seen an average of 15,734,705 shares traded, while the 50-day average volume stands at 15,946,968.

WFC stock has decreased by -6.42% in the last month. The company shares reached their 1-month lowest point of $41.44 on 09/22/22. With the stock rallying to its 52-week high on 02/10/22, shares of the company touched a low of $36.54 and a high of $60.30 in 52 weeks. It has reached a new high 12 times so far this year and lost -13.46% or -$6.46 in price. In spite of this, the price is down -31.14% from the 52-week high.


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Insider Transactions

143 days have passed since Wells Fargo & Company (WFC) last reported insider trading activity. Santos Kleber, who is Sr. Executive Vice President, most recently acquired $22,700 shares at $44.44 per share on May 03.

Valuation Metrics

Wells Fargo & Company (WFC) has a trailing price-to-earnings (P/E) ratio of 9.96. The stock’s beta is 1.15. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.79, the price-to-book (PB) ratio at 1.00, and the price-to-cash flow ratio at 37.11.

The company has a payout ratio of 21.40%. The company’s most recent quarterly dividend payment was $0.30 a share, representing a up of 20.0% from $0.25 last year. Its latest increase dividend $0.05 reported on Tuesday July 26 2022.

Financial Health

Further, the company has a long term debt to equity ratio of 0.95 and a total debt to equity ratio of 0.95 for the quarter ending June 29. Its gross profit as reported stood at $35.78 billion compared to revenue of $39.69 billion.

Earnings Surprise

For the three-month period that ended June 29, Wells Fargo & Company had $150.29 billion in total debt. The analyst consensus anticipated Wells Fargo & Company’s latest quarter earnings to come in at $0.8 per share, but it turned out to be $0.74, a -7.50% surprise. At the end of the quarter ending June 29, Wells Fargo & Company’s stock balance sheet showed total debt was $208.99 billion. Shareholders own equity worth $3.79 billion.

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 22 September was 30.83%, suggesting the stock is Neutral, with historical volatility in this time frame at 31.70%.

As of today, WFC’s price is $43.09 -5.94% or -$2.62 from its 5-day moving average. WFC is currently trading -6.99% lower than its 20-day SMA and -4.84% lower than its 100-day SMA. However, the stock’s current price level is +6.27% above the SMA50 and -14.94% below the SMA200.

The stochastic %K and %D were 10.78% and 26.99%, respectively, and the average true range (ATR) was 1.26. With the 14-day stochastic at 1.70% and the average true range at 1.24, the RSI (14) stands at 36.89%. The stock has reached -1.11 on the 9-day MACD Oscillator while the 14-day reading was at -1.33.

Analyst Ratings

Citigroup upgraded Wells Fargo & Company (NYSE: WFC) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Neutral. 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 6 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 6 analysts, while 15 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 $44.50 and $65.00, with a median target of $52.00. Taking a look at these predictions, the average price target given by analysts for Wells Fargo & Company (WFC) stock is $53.50.

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