Wednesday, September 30, 2020

UBS Upgrade Wells Fargo & Company [WFC]. What else is Wall St. saying?

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Wells Fargo & Company [NYSE: WFC] gained 1.34% or 0.32 points to close at $24.27 with a heavy trading volume of 34793960 shares. The company report on September 11, 2020 that Wall Financial Corporation Reports Q2 Fiscal 2021 Results.

VANCOUVER, BC, Sept. 11, 2020 /CNW/ – Wall Financial Corporation (the “Company”) released its operating results and financial statements for the six months ended July 31, 2020. The Company recorded a net loss attributable to shareholders of the Company for the six months ended July 31, 2020 of $5,382,879 or $0.16 per share compared with net earnings of $107,760,399 or $3.17 per share for the same period of the prior year. This loss was primarily due to the recognition of mark-to-market losses in respect of interest rate swap contracts of $3,969,665 and the decline in hotel revenues for the six months ended July 31, 2020.

The declaration of the COVID-19 virus as a pandemic by the World Health Organization on March 11, 2020, and the subsequent shut downs globally, domestically and locally have had a significant impact on the Company’s hotel operations. The Company enacted cost reduction programs at its two hotels, which include the closure of one of the two towers at its downtown hotel, the furlough of all non-essential staff, and the elimination of all but the most necessary expenses in order to preserve cash flow. The situation is dynamic and the ultimate duration and magnitude of the impact on the economy and the Company’s business are not known at this time. For the six months ended July 31, 2020, the Company’s hotel operations have experienced a significant decline in current and future guest bookings and occupancy levels are low, resulting in a decrease of revenues from hotel operations from $45,806,183 for the six months ended July 31, 2019 to $10,685,814 for the six months ended July 31, 2020.

It opened the trading session at $23.92, the shares rose to $24.32 and dropped to $23.71, the range by which the price of stock traded the whole day. The daily chart for WFC points out that the company has recorded -21.43% loss over the past six months. However, it is still -10.32% lower than its most recent low trading price.

If we look at the average trading volume of 43.92M shares, WFC reached to a volume of 34793960 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Wells Fargo & Company [WFC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for WFC shares is $29.62 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on WFC stock is a recommendation set at 2.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

UBS have made an estimate for Wells Fargo & Company shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on September 11, 2020. The new note on the price target was released on September 02, 2020, representing the official price target for Wells Fargo & Company stock. Previously, the target price had yet another raise to $30, while Atlantic Equities analysts kept a Neutral rating on WFC stock.

The Average True Range (ATR) for Wells Fargo & Company is set at 0.74, with the Price to Sales ratio for WFC stock in the period of the last 12 months amounting to 1.68. The Price to Book ratio for the last quarter was 0.63, with the Price to Cash per share for the same quarter was set at 115.35. Price to Free Cash Flow for WFC in the course of the last twelve months was 4.02.

Trading performance analysis for WFC stock

Wells Fargo & Company [WFC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.02. With this latest performance, WFC shares dropped by -3.65% in over the last four-week period, additionally sinking by -21.43% over the last 6 months – not to mention a drop of -50.11% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for WFC stock in for the last two-week period is set at 47.92, with the RSI for the last a single of trading hit 49.04, and the three-weeks RSI is set at 46.99 for Wells Fargo & Company [WFC]. The present Moving Average for the last 50 days of trading for this stock 24.77, while it was recorded at 24.16 for the last single week of trading, and 34.57 for the last 200 days.

Wells Fargo & Company [WFC]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Wells Fargo & Company [WFC] shares currently have an operating margin of +26.34. Wells Fargo & Company’s Net Margin is presently recorded at +17.86.

Return on Total Capital for WFC is now 5.45, given the latest momentum, and Return on Invested Capital for the company is 5.84. Return on Equity for this stock inclined to 10.20, with Return on Assets sitting at 1.03. When it comes to the capital structure of this company, Wells Fargo & Company [WFC] has a Total Debt to Total Equity ratio set at 234.64. Additionally, WFC Total Debt to Total Capital is recorded at 70.12, with Total Debt to Total Assets ending up at 17.62. Long-Term Debt to Equity for the company is recorded at 116.45, with the Long-Term Debt to Total Capital now at 40.00.

Reflecting on the efficiency of the workforce at the company, Wells Fargo & Company [WFC] managed to generate an average of $75,246 per employee.

Wells Fargo & Company [WFC]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Wells Fargo & Company posted 0.92/share EPS, while the average EPS was predicted by analysts to be reported at 1.14/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -19.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for WFC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Wells Fargo & Company go to 3.84%.

An analysis of insider ownership at Wells Fargo & Company [WFC]

There are presently around $68,809 million, or 69.90% of WFC stock, in the hands of institutional investors. The top three institutional holders of WFC stocks are: VANGUARD GROUP INC with ownership of 303,977,610, which is approximately -4.101% of the company’s market cap and around 0.13% of the total institutional ownership; BLACKROCK INC., holding 286,306,750 shares of the stock with an approximate value of $6.95 billion in WFC stocks shares; and BERKSHIRE HATHAWAY INC, currently with $5.77 billion in WFC stock with ownership of nearly -26.493% of the company’s market capitalization.

Positions in Wells Fargo & Company stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 807 institutional holders increased their position in Wells Fargo & Company [NYSE:WFC] by around 176,614,957 shares. Additionally, 1,061 investors decreased positions by around 395,608,367 shares, while 131 investors held positions by with 2,262,923,280 shares. The mentioned changes placed institutional holdings at 2,835,146,604 shares, according to the latest SEC report filing. WFC stock had 168 new institutional investments in for a total of 22,655,700 shares, while 213 institutional investors sold positions of 55,289,728 shares during the same period.

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