There is no doubt that Wells Fargo & Company (WFC) ticks all the boxes.

Wells Fargo & Company (NYSE: WFC) stock fell -2.63% on Friday to $42.27 against a previous-day closing price of $43.41. With 19.12 million shares changed hands, the volume of the stock remained heavier than its average volume of 16.71 million shares. During the session, the Banks – Diversified company that operates in wider Financial sector, reached to the highest price of $43.81 whereas the lowest price it dropped to was $42.24. The 52-week range on WFC shows that it touched its highest point at $60.30 and its lowest point at $36.54 during that stretch. It currently has a 1-year price target of $52.56. With its current market cap of 161.06 billion, WFC has annualized dividend of $1.20 while the current yield stands at 2.84%. Beta for the stock currently stands at 1.15.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WFC was down-trending over the past week, with a drop of -2.33%, but this was down by -4.82% over a month. Three-month performance surged to 9.51% while six-month performance fell -20.83%. The stock lost -7.81% in the past year, while it has lost -11.90% so far this year. A look at the trailing 12-month EPS for WFC yields 4.17 with Next year EPS estimates of 5.05. For the next quarter, that number is 1.10. This implies an EPS growth rate of -18.00% for this year and 27.54% for next year. EPS is expected to grow by 7.28% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 4.40%.

Float and Shares Shorts:

At present, 3.79 billion WFC shares are outstanding with a float of 3.79 billion shares on hand for trading. On Aug 30, 2022, short shares totaled 33.59 million, which was 0.89% higher than short shares on Jul 28, 2022. In addition to Mr. Charles W. Scharf as the firm’s Pres, CEO & Director, Mr. Michael P. Santomassimo serves as its Sr. EVP & CFO.

Institutional Ownership:

Through their ownership of 73.98% of WFC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.95% of WFC, in contrast to 30.40% held by mutual funds. Shares owned by individuals account for 13.26%. As the largest shareholder in WFC with 8.13% of the stake, The Vanguard Group, Inc. holds 308,256,892 shares worth 308,256,892. A second-largest stockholder of WFC, BlackRock Fund Advisors, holds 161,337,351 shares, controlling over 4.25% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in WFC, holding 160,968,610 shares or 4.24% stake. With a 2.96% stake in WFC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 112,211,395 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.23% of WFC stock, is the second-largest Mutual Fund holder. It holds 84,587,853 shares valued at 3.7 billion. Dodge & Cox Stock Fund holds 2.11% of the stake in WFC, owning 80,160,241 shares worth 3.5 billion.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. It generated $3.12B net income for the quarter, which came to $17.66B over the last twelve months.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WFC since 28 analysts follow the stock currently. There are 15 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 6 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With WFC analysts setting a high price target of $65.00 and a low target of $44.50, the average target price over the next 12 months is $53.50. Based on these targets, WFC could surge 53.77% to reach the target high and rise by 5.28% to reach the target low. Reaching the average price target will result in a growth of 26.57% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. WFC will report FY 2022 earnings on 01/18/2023. Analysts have provided yearly estimates in a range of $4.22 being high and $3.77 being low. For WFC, this leads to a yearly average estimate of $3.98. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Wells Fargo & Company surprised analysts by -$0.06 when it reported $0.74 EPS against a consensus estimate of $0.80. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is $1.21 and the low estimate is $1.04. The average estimate for the next quarter is thus $1.10.

Summary of Insider Activity:

Insiders traded WFC stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 87,344 shares were bought while 44,590 shares were sold. The number of buy transactions has increased to 53 while that of sell transactions has risen to 47 over the past year. The total number of shares bought during that period was 1,324,941 while 737,862 shares were sold.

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