Wells Fargo & Company Target of Unusually High Options Trading (NYSE:WFC)

Wells Fargo & Company (NYSE:WFC) saw unusually large options trading activity on Thursday. Stock investors bought 108,090 put options on the company. This represents an increase of approximately 99% compared to the average volume of 54,282 put options.

Analysts Set New Price Targets

Several brokerages recently commented on WFC. TD Cowen cut their target price on Wells Fargo & Company from $102.00 to $100.00 and set a “hold” rating on the stock in a research report on Thursday, January 15th. Truist Financial dropped their price target on Wells Fargo & Company from $98.00 to $94.00 and set a “buy” rating on the stock in a research note on Tuesday. Freedom Capital downgraded shares of Wells Fargo & Company from a “strong-buy” rating to a “hold” rating in a research report on Thursday, January 15th. HSBC reiterated a “hold” rating and set a $74.00 target price on shares of Wells Fargo & Company in a research report on Wednesday, January 7th. Finally, CICC Research started coverage on shares of Wells Fargo & Company in a report on Wednesday, January 14th. They issued a “market perform” rating and a $96.00 price target for the company. Thirteen research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Wells Fargo & Company has a consensus rating of “Moderate Buy” and a consensus price target of $96.71.

Insider Transactions at Wells Fargo & Company

In related news, EVP Kleber Santos sold 25,000 shares of the stock in a transaction on Friday, February 20th. The stock was sold at an average price of $87.72, for a total value of $2,193,000.00. Following the completion of the sale, the executive vice president directly owned 79,876 shares in the company, valued at $7,006,722.72. This represents a 23.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Bridget E. Engle sold 30,000 shares of the firm’s stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $87.10, for a total value of $2,613,000.00. Following the transaction, the executive vice president directly owned 83,478 shares of the company’s stock, valued at approximately $7,270,933.80. This represents a 26.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 115,000 shares of company stock worth $10,050,000. Company insiders own 0.08% of the company’s stock.

Institutional Investors Weigh In On Wells Fargo & Company

A number of institutional investors and hedge funds have recently bought and sold shares of WFC. Lane Brothers & Co. Inc. purchased a new position in Wells Fargo & Company during the 4th quarter worth $893,000. ARP Global Capital Ltd bought a new stake in shares of Wells Fargo & Company in the 4th quarter worth $9,066,000. Nalls Sherbakoff Group LLC purchased a new stake in shares of Wells Fargo & Company in the fourth quarter valued at about $41,000. Larry Mathis Financial Planning LLC purchased a new stake in shares of Wells Fargo & Company in the fourth quarter valued at about $1,044,000. Finally, Advisortrust Partners LLC bought a new position in shares of Wells Fargo & Company during the fourth quarter valued at about $981,000. 75.90% of the stock is owned by hedge funds and other institutional investors.

More Wells Fargo & Company News

Here are the key news stories impacting Wells Fargo & Company this week:

• Positive Sentiment: Analyst pieces highlighting Wells Fargo’s dividend and income profile may attract income-focused buyers and support the share price. Read More.
• Positive Sentiment: A STOCK Act disclosure shows Senator Mitch McConnell purchased WFC shares — a public insider/political buy that can be read as a mild positive signal for sentiment, though size/details weren’t provided. Read More.
• Positive Sentiment: Wells Fargo launched a national housing-affordability challenge (PR/CSR initiative) that can boost reputation and community engagement — positive for franchise value but with limited near-term P&L impact. Read More.
• Neutral Sentiment: Wells Fargo designated a new series of preferred stock (Series GG). This is a capital-management move — watch terms for yield/call features; immediate impact on common shares is unclear. Read More.
• Neutral Sentiment: Wells Fargo initiated coverage of SoFi at Equal Weight (valuation and loan-sale risk cited); the coverage pressured SoFi shares but is mainly a fintech/coverage item rather than direct WFC fundamentals. Read More.
• Neutral Sentiment: Additional articles note that WFC is a trending ticker and coverage by outlets like Zacks — increased attention can raise volume/volatility but is not a directional fundamental catalyst. Read More.
• Negative Sentiment: Large unusual options activity: traders bought ~108,090 put contracts (about a 99% increase vs. average). Heavy put buying can signal bearish bets or hedging and tends to raise downside risk/volatility.
• Negative Sentiment: Truist lowered its expectations for Wells Fargo’s stock price — a downward analyst revision that can pressure sentiment if followed by other shops. Read More.
• Negative Sentiment: Macro/sector headwinds: commentary that the Fed held rates and flagged higher inflation has pressured bank stocks broadly, including WFC, as higher inflation expectations can weigh on loan demand and credit outlooks. Read More.

Wells Fargo & Company Stock Performance

WFC opened at $76.30 on Friday. Wells Fargo & Company has a 1-year low of $58.42 and a 1-year high of $97.76. The company has a market cap of $235.42 billion, a price-to-earnings ratio of 12.17, a PEG ratio of 0.83 and a beta of 1.08. The company’s fifty day moving average price is $86.15 and its two-hundred day moving average price is $86.30. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.05.

Wells Fargo & Company (NYSE:WFC) last posted its earnings results on Wednesday, January 14th. The financial services provider reported $1.76 EPS for the quarter, topping the consensus estimate of $1.66 by $0.10. The company had revenue of $21.29 billion during the quarter, compared to the consensus estimate of $21.63 billion. Wells Fargo & Company had a net margin of 17.27% and a return on equity of 12.90%. The firm’s revenue for the quarter was up 4.5% on a year-over-year basis. During the same period in the previous year, the firm posted $1.43 earnings per share. On average, analysts expect that Wells Fargo & Company will post 5.89 EPS for the current fiscal year.

Wells Fargo & Company Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Sunday, March 1st. Investors of record on Friday, February 6th were given a dividend of $0.45 per share. The ex-dividend date of this dividend was Friday, February 6th. This represents a $1.80 annualized dividend and a dividend yield of 2.4%. Wells Fargo & Company’s payout ratio is presently 28.71%.

About Wells Fargo & Company

Wells Fargo & Company is a diversified, U.S.-based financial services company headquartered in San Francisco, California. Founded in 1852 by Henry Wells and William G. Fargo, the firm has evolved from its origins in express delivery and pioneer-era banking into one of the largest full-service banks in the United States. The company provides a broad range of financial products and services to individual, small business, commercial, and institutional clients. Charles W. Scharf serves as chief executive officer.

Wells Fargo operates across several core business segments, including consumer banking and lending, commercial banking, corporate and investment banking, and wealth and investment management.