Evercore ISI has recently reiterated Wells Fargo & Co (WFC) stock to Outperform rating, as announced on September 6, 2024, according to Finviz. Earlier, on September 3, 2024, Deutsche Bank had raised the stock from a Hold to Buy, setting a price target of $65. Compass Point also reduced Neutral rating with a price target of $64. Additionally, Keefe Bruyette reduced Mkt Perform rating on March 27, 2024, with a target price of $62. Odeon analysts, in their report published on January 18, 2024, also reduced Hold rating for Wells Fargo & Co’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Wells Fargo & Co (WFC) Stock Trading Recap
On Monday, Wells Fargo & Co (WFC) stock saw a modest uptick, ending the day at $53.79 which represents a slight increase of $1.01 or 1.91% from the prior close of $52.78. The stock opened at $52.81 and touched a low of $52.81 during the day, reaching a high of $53.93. The volume of shares traded was 17.79 million falling short of the average volume of 17.91 million.
WFC Stock Performance and Moving Averages
In recent trading, Wells Fargo & Co (WFC) stock price has shown some volatility, fluctuating -1.47% over the last five trades and -1.43% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -6.47%, and it has plunged by -6.29% in the previous three months. Currently, WFC is trading at -3.59%, -5.00%, and -2.31% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, WFC, a Financial sector stock, is trading -14.00% below its 52-week high but remains 40.13% above its 52-week low. The Average True Range (ATR) (14 days) of 1.64 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Wells Fargo & Co’s Profitability and Valuation Ratios
Wells Fargo & Co’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 18.49% and a profit margin of 14.31%, with a gross margin of -6.47%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Wells Fargo & Co’s market capitalization stands at $183.09 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 11.04, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 9.76. Additionally, the Price-to-Sales Ratio is 1.49, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.15, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.15% of Wells Fargo & Co (WFC)’s shares, while financial institutions hold 77.32%.
