why Wells Fargo & Company [WFC] is a Good Choice for Investors After New Price Target of $29.75

Wells Fargo & Company [NYSE: WFC] slipped around -0.3 points on Thursday, while shares priced at $22.95 at the close of the session, down -1.29%. The company report on October 15, 2020 that Wells Fargo NeighborhoodLIFT Program Helps Narrow Homeownership Gap in Minneapolis and St. Paul.

Homeownership initiative expands with $7 million investment in down payment assistance for low- and moderate-income residents.

Homeownership rates among people of color in Minneapolis and St. Paul, Minn., demonstrate the highest disparity in the U.S. with a glaring 50% racial equity gap between White and Black homeowners, according to the Urban Institute. To address this ongoing issue, Wells Fargo, NeighborWorks® America, and its network member NeighborWorks Home Partners today announced NeighborhoodLIFT® program, a $7 million collaboration to boost homeownership in Minneapolis and St. Paul for low- and moderate-income individuals by offering $15,000 in down payment assistance to 425 eligible homebuyers.

Wells Fargo & Company stock is now -57.34% down from its year-to-date (YTD) trading value. WFC Stock saw the intraday high of $23.09 and lowest of $22.75 per share. The company’s 52-week high price is 54.75, which means current price is +4.32% above from all time high which was touched on 01/02/20.

Compared to the average trading volume of 40.69M shares, WFC reached a trading volume of 59839190 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say 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 $29.75 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 2.80. 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.

Wolfe Research have made an estimate for Wells Fargo & Company shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on September 14, 2020. While these analysts kept the previous recommendation, UBS raised their target price from $21 to $24. The new note on the price target was released on September 11, 2020, representing the official price target for Wells Fargo & Company stock.

The Average True Range (ATR) for Wells Fargo & Company is set at 0.80, with the Price to Sales ratio for WFC stock in the period of the last 12 months amounting to 1.61. The Price to Book ratio for the last quarter was 0.60, with the Price to Cash per share for the same quarter was set at 113.83. Price to Free Cash Flow for WFC in the course of the last twelve months was 3.85.

How has WFC stock performed recently?

Wells Fargo & Company [WFC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -9.29. With this latest performance, WFC shares dropped by -10.74% in over the last four-week period, additionally sinking by -19.13% over the last 6 months – not to mention a drop of -53.72% 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 40.06, with the RSI for the last a single of trading hit 34.85, and the three-weeks RSI is set at 42.09 for Wells Fargo & Company [WFC]. The present Moving Average for the last 50 days of trading for this stock 24.35, while it was recorded at 24.38 for the last single week of trading, and 31.02 for the last 200 days.

Wells Fargo & Company [WFC]: Deeper insight into the fundamentals

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 5.15. 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 180.61. Additionally, WFC Total Debt to Total Capital is recorded at 64.36, 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 36.72.

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

Earnings analysis for Wells Fargo & Company [WFC]

With the latest financial reports released by the company, Wells Fargo & Company posted 0.6/share EPS, while the average EPS was predicted by analysts to be reported at 1.12/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -46.40%. 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 3.48%.

Insider trade positions for Wells Fargo & Company [WFC]

There are presently around $64,829 million, or 67.10% 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 $6.57 billion in WFC stocks shares; and BERKSHIRE HATHAWAY INC, currently with $5.45 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 October and at the time of the October reporting period, where 784 institutional holders increased their position in Wells Fargo & Company [NYSE:WFC] by around 177,371,108 shares. Additionally, 1,037 investors decreased positions by around 391,832,432 shares, while 130 investors held positions by with 2,255,573,855 shares. The mentioned changes placed institutional holdings at 2,824,777,395 shares, according to the latest SEC report filing. WFC stock had 151 new institutional investments in for a total of 23,792,229 shares, while 215 institutional investors sold positions of 55,613,297 shares during the same period.

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