Wolfe Research has recently raised Wells Fargo & Co (WFC) stock to Outperform rating, as announced on October 8, 2024, according to Finviz. Earlier, on September 6, 2024, Evercore ISI had reiterated the stock to Outperform, setting a price target of $65 for WFC stock. Deutsche Bank also raised Buy rating with a price target of $65. Additionally, Compass Point reduced Neutral rating on April 9, 2024, with a target price of $64. Keefe Bruyette analysts, in their report published on March 27, 2024, also reduced Mkt Perform rating and set a price target of $56 for Wells Fargo & Co’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Wells Fargo & Co (WFC) Stock Trading Recap
On Thursday, Wells Fargo & Co (WFC) stock saw a decline, ending the day at $78.85 which represents a decrease of $-0.40 or -0.50% from the prior close of $79.25. The stock opened at $79.43 and touched a low of $78.61 during the day, reaching a high of $79.66. The volume of shares traded was 10.06 million falling short of the average volume of 15.80 million.
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WFC Stock Performance and Moving Averages
In recent trading, Wells Fargo & Co (WFC) stock price has shown some volatility, fluctuating -3.16% over the last five trades and 10.76% 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 49.14%, and it has gained 8.67% in the previous three months. Currently, WFC is trading at 0.35%, 5.97%, and 23.59% 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 -3.25% below its 52-week high but remains 65.69% above its 52-week low. The Average True Range (ATR) (14 days) of 1.55 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 financial health. The company currently boasts an operating margin of 19.11% and a profit margin of 14.76%, with a gross margin of 49.14%. 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 $259.33 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 14.67, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 11.37. Additionally, the Price-to-Sales Ratio is 2.06, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.62, 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 0.18% of Wells Fargo & Co (WFC)’s shares, while financial institutions hold 76.87%.
Notable insider trades include Williams Ather III, Sr. Executive Vice President at Wells Fargo & Co (WFC), who sold 60000 shares on Oct 16 ’24, at $63.7 each, totaling $3.82 million. On Oct 14 ’24, Van Beurden Saul, Sr. Executive Vice President, sold 35000 shares for $61.99 each, amounting to $2.17 million.
