- WFC stock fell 1.81% in a week and 8.12% in a year but gained 0.65% YTD.
- Wells Fargo & Co. had to pay $40 Million for the SEC settlement and $30 Million to its customers.
Wells Fargo & Co. (WFC) stock gained 1.58%, as it paid a $35 Million penalty to the SEC and $40 Million to clients overcharged for investment advice. The bank will pay back $40 Million to nearly 11,000 accounts opened before 2014 and were overcharged for investment advice. The Securities and Exchange Commission (SEC) also asked the bank to pay a $35 Million civil penalty for settlement. Investors like this approach.
Wells Fargo & Co. (WFC) Stock – Financial Analysis
On August 24, 2023, Wells Fargo & Co. experienced specific issues with selective aspects of its banking system. The customers faced issues with fund transfers and had their ATM cards declined. The bank assured the swift resolution of complaints. The recent announcement from Fed Chair Jerome Powell hinting about the rise in interest rates caused a stir in banking stocks across the United States.
From Q1 to Q2 2023, interest income jumped from $19.36 Billion to $20.83 Billion, while interest income growth went from 8.78% to 7.62%. Net interest income went from $13.34 Billion to $13.16 Billion, while net interest income growth went from -0.72% to -1.30%.
Wells Fargo & Company (NYSE: WFC) declined 1.81% in a week, 9.06% in a month, and 8.12% in a year. But gained 9.94% in six months and 0.65% YTD.
Wells Fargo & Co. (NYSE: NFC) – Technical Analysis
WFC stock, at press time, is trading at $41.88, gaining 1.58%. The previous close and open were at $41.23 and $ 41.41, respectively. The 52-week range is from $35.25 to $48.84, meaning a solid push could create new highs. With an average volume of 20.56 Million shares, the market cap is $153.23 Billion.
The trailing twelve-month (TTM) price-to-earnings (P/E) ratio is 10.58, suggesting a highly undervalued stock price. At the same time, the (TTM) earnings per share (EPS) is $3.96, hinting toward financial stability. Analysts placed a 2.63 rating for moderate buy and estimated a price target at $48.62 with a 16.1% upside.
Wells Fargo & Co. released Q2 earnings on July 14, 2023, where the reported revenue of $20.533 Billion surpassed the expected value of $20.167 Billion by 1.82%. The reported earnings of $1.25 per share also beat the estimated value of $1.155 per share by 8.21%. These positive earnings pushed the WFC share price to 8.46% during earnings.
Compared to previous earnings, revenue gained 14.34% while the EPS jumped by 52.44%. The subsequent earnings will be released on October 13, 2023, where the revenue is estimated to be $20.051 Billion and the earnings to be $1.241, a slight drop from previous expectations.
The (TTM) revenue is $75.61 Billion and the year-over-year (YoY) quarterly revenue growth is 14.30%. The total cash in hand at the end of the most recent quarter (MRQ) is $366.09 Billion, while total debt in a similar time frame is $280.58 Billion.
Wells Fargo & Co. (WFC) Stock – Candle Exploration
From March to June 2023, WFC stock price action created a double bottom pattern, making it vital for the next bull run. But all the while, it failed to cross the 50EMA and 200EMA. In July, it traded significantly above the EMAs but it is currently trading below them.
Even if the price gains momentum, it shall bounce off the EMAs and fall to the buying zone. However, the chances of crossing the $37.2 mark are slim. If the price crosses the EMAs, it should exceed the resistance at $44.39. An extended stay above this point would make it strong enough to cross the selling zone.
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