Fed Rate Hike Pushes Wells Fargo & Co (WFC) Shares Up


Today was the was the day that many within the banking industry, such as Wells Fargo & Co (NYSE:WFC) have been waiting for for years, a Fed rate hike. At 2 p.m. ET Fed Chairwoman Jannet Yellen announced a hike of a quarter a point, sending many banking stocks higher in early afternoon trading. The hike, which many within the industry had been expecting for a few weeks now, may not have had the same effect as a sudden unexpected hike, and overall the markets seem to have remained fairly steady. Shares of Wells Fargo & Co (NYSE:WFC) spiked moments after the Fed announcement to $55.53 before giving back some of their gains since.

The stock is currently trading higher by 0.64% or $0.35 following the positive news, hitting $55.25 per share at the time of us publishing this article. About 11.63M shares traded hands. WFC has declined 1.24% since May 13, 2015 and is downtrending. It has outperformed the S&P500 by 2.44%.

From a total of 16 analysts covering Wells Fargo & Company (NYSE:WFC) stock, 11 rate it a “Buy”, 2 a “Sell”, and 3 a “Hold”. This means that 69% of the ratings are positive. The highest target price is $67 while the lowest target price is $50. The mean of all analyst targets is $58.80 which is 6.43% above today’s ($55.25) stock price. Wells Fargo & Company was the topic of 21 analyst reports since July 29, 2015 according to the firm StockzIntelligence Inc. Piper Jaffray initiated shares on November 24 with a “Neutral” rating. Vetr upgraded shares to a”Strong-Buy” rating and a $57.65 target share price in their report from a September 2. Guggenheim maintained WFC stock in a recent report from October 15 with a “Buy” rating. S&P Research maintained the rating on August 13. S&P Research has a “Buy” rating and a $62 price target on shares. Finally, Macquarie Research maintained the stock with a “Underperform” rating in a report they issued on a September 25.

The institutional sentiment increased to 1.28 in Q2 2015. It’s up 0.15, from 1.13 in 2015Q2. The ratio is positive, as 66 funds sold all their Wells Fargo & Co shares they owned while 605 reduced their positions. 83 funds bought stakes while 778 increased their total positions. Institutions now own 3.56 billion shares which is 7.88% less than the previous share count of 3.86 billion in 2015Q2.

Daily Journal Corp holds 66.1% of its total portfolio in Wells Fargo & Co, equating to 1.59 million shares. Theleme Partners Llp owns 9.43 million shares representing 34.03% of their total US portfolio. Moreover, General Re New England Asset Management Inc has 31.59% of their total portfolio invested in the company, equating to 24.36 million shares. The California-based American Assets Inc has a total of 28.99% of their portfolio invested in the stock. Windacre Partnership Llc, a Texas-based fund reported 951,000 shares owned.

Since April 17, 2015, the stock had 0 insider purchases, and 2 selling transactions for a total of $3.11 million in net activity. Sloan Timothy J sold 24,000 shares worth $1.30 million. Strother James M sold 31,000 shares worth $1.81M. Loughlin Michael J sold 20,000 shares worth $1.12 million. Rhein Kevin A sold 17,500 shares worth $967,225. The insider Heid Michael J sold 18,000 shares worth $999,900.

Wells Fargo & Company is a financial services and bank holding company. The company has a market cap of $278.65 billion. The Company’s divisions are Community Banking, Wholesale Banking, and Wealth and Brokerage and Retirement. It has 13.36 P/E ratio. The Company’s Community Banking segment offers a range of financial services and products for clients and small businesses, including checking and savings accounts, credit and debit cards, and auto, student and small business lending.