Jefferies upgrades Wells Fargo [WFC] to Buy rating with a $38 price target

Jefferies took its Wells Fargo [WFC] rating to the equivalent of Buy from Hold, and the price target to $38.0 from $26, in a research note dated 2021-01-07. That figure represents around a 16.21% premium from where the company’s shares closed on Wednesday. Other analysts also revised their coverage, with Keefe Bruyette’s analysts upgrading the shares from “a Mkt perform” rating to “an Outperform” rating in a research note to investors issued in mid December. Meanwhile, RBC Capital Mkts had raised its rating on WFC to “Sector perform” from the earlier “an Underperform”, in a research note produced for clients November 30, 2020. In addition, there was an upgrade from Morgan Stanley on November 30, 2020. The rater changed WFC from “an Equal-weight” to “an Overweight”.

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Is Wells Fargo & Company [NYSE:WFC] a Good Buy Right Now?

It should be noted that WFC technical indicators for short, intermediate as well as long term progress have placed an overall average of 88% as Buy. The average signal changed from 88% Buy in the last week and compares with 24% Buy in the past month. Data from Wells Fargo & Company’s Trend Spotter indicated that the signals were Strongest. The stock current average is 34.12 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 39.35 million shares while the medium term average advocated for 100% Buy. The average long-term signal stands at 50% Buy and the 100-day average volume stands at 39.47 million shares.

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WFC Price Performance

On Wall Street, Wells Fargo & Company [NYSE:WFC] finished Wednesday’s session up 7.08% at $32.69. The stock went up to $33.00 at the same session while its lowest single day price was $31.79. In the last five days, it saw a rise of about 9.77%, Wells Fargo & Company shares gained by almost 8.32% since the beginning of the year. However, the share price has dropped to as low as -38.70% below its one year high. On 01/06/21, the company shares recorded $33.00, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $29.40. The company’s shares have declined by -37.92% in the past year. The 50-day SMA achieved is $26.88 while the 200-day SMA is $26.14. Volume gained to 73.51 million from 37.36 million in the previous session.

Wells Fargo & Company [WFC] Valuation Measures

Notably, Wells Fargo & Company [WFC] stock cannot be classified as a good candidate in the listing of underestimated low-priced Banks – Diversified companies to purchase soonest possible with the prevailing 12-month PE ratio of 87.88. The measure means the stock is exchanging at a premium as compared to the 11.75x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 2.52 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 2.42 which means WFC serve an unattractive investment opportunity compared to its competitors.

WFC Stock Support And Resistance Levels

On the 24-hour scale, the immediate backing is perceived around 31.99 level, and in case of violation of this particular level, it will cause more drop to 31.28 level. On the upper level, 33.70 is still the key resistance. The stock may increase to the subsequent resistance at 33.20. The Relative Strength Index (RSI) pinned on the 14-day chart is 72.48, implying a overbought technical stance while the MACD stands at 1.02, meaning price will increase in the next trading period. Percent R indicator moved to 7.38%, implying bullish price movement. Stochastic %K at 77.71% suggest selling the stock.

What is the short interest in Wells Fargo & Company?

Short interest in the Wells Fargo & Company stock has plunged, decreasing by -5.98 million shares to total 40.83 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 34.85 million, data from Yahoo Finance shows. The increase of 14.65% suggests the stock saw some increased bearish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 0.99% of the overall float for the stock.

Wells Fargo & Company’s Biggest Shareholders: Who Owns Wells Fargo & Company [WFC]?

Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 302,043,985 shares or roughly 7.31% of the outstanding WFC shares. This means their shares have increased by 15,671,397 from the 302,043,985 the investor reportedly held in its prior 13-F filing. With the conclusion of the purchase, BlackRock Fund Advisors updated stake is worth $5,009,836,578. Details in the latest 13F filings reveal that SSgA Funds Management, Inc. acquired their 4.28% stake valued at $4,540,246,569 while Dodge & Cox added theirs at $3,582,200,027. During the last quarter, SSgA Funds Management, Inc. raised 6,808,966 of its shares in Wells Fargo & Company while Dodge & Cox bought 27,618,684 shares. The Berkshire Hathaway, Inc.’s holdings currently number 127,380,440 shares at $4164066583.6. According to the firm’s last 13F report, T. Rowe Price Associates, Inc. shares in the company at filing stood at 98,187,702 shares, roughly $2,685,433,650.

WFC Earnings Forecast For The Current Quarter

Wells Fargo & Company [WFC] is expected to report weak earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $18.11B and an earnings per share of $0.59 for Dec 2020. Looking further ahead, the company is expected to report revenue of $17.6B at an EPS of $0.49 for Mar 2021. The estimates represent a downside of -1.70% and 499.14% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.

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WFC Earnings Estimates For The Current Year

For the financial year, Wells Fargo & Company [NYSE:WFC] is expected to bring in revenue of $72.46B. The returns are nearly $-12.6 billion lower than the company’s actual revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 0.33, lower than that of FY19 by -$3.72. Estimates put this year’s earnings growth at -91.90%, 557.60% for the next, and at an annual -4.08% over the next 5-year period. As for sales, forecasts are for a decrease of -14.80% in the current fiscal year and a further -1.70% over the following year.

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