Wells Fargo & Co (WFC) Stock Hits New 52 Week Low – Will the fall continue?


Banking stocks are getting hit hard today, and one these companies includes Wells Fargo & Co (NYSE:WFC). While shares have not fallen quite as much as Bank of America or Citigroup today, they have fallen enough to reach a new 52-week low at $44.50, prior to bouncing back slightly. Shares are at level not seen since late 2013, and some technical investors may see a floor at around this point. It will be interesting to see if the floor holds. If not, investors could be in store for much further declines, based on technical analysis.

Most of the problems that are affecting Wells Fargo & Co (NYSE:WFC) and other banking stocks stems from the continual fall in oil prices. Wells Fargo’s exposure to this sector totals around $42 billion, but unlike some companies they are being more forthcoming about their exposure to this downturn. Additionally, fears of a possible recession have caused the banking sector as a whole to fall as of late. Some analysts believe a recession may already be underway while others think that the economy is still very healthy. It will be interesting to see how shares of Wells Fargo & Co (NYSE:WFC) close out the week. Investors who are long in this stock will hope for a bounce later today or tomorrow.

The stock is down 2.62% or $1.21 following the news, hitting $44.96 per share. Approximately 17.36M shares traded hands. WFC shares have declined 16.43% since July 8, 2015 and are currently downtrending. It has underperformed the S&P500 by 6.96%.

From a total of 20 analysts covering Wells Fargo & Company (NYSE:WFC) stock, 15 rate it a “Buy”, 3 a “Sell”, and 2 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $67 while the lowest target price is $47. The mean of all analyst targets is $57.63 which is 28.18% above today’s ($44.96) stock price. Wells Fargo & Company was the topic of 32 analyst reports since July 29, 2015 according to the firm StockzIntelligence Inc. Susquehanna upgraded shares on January 20 to a “Positive” rating. Guggenheim maintained shares with a”Buy” rating and a $60 target share price in their report from an October 15. Argus Research maintained WFC stock in a recent report from January 19 with a “Buy” rating. Vetr upgraded the rating on September 2. Vetr has a “Strong-Buy” rating and a $57.65 price target on shares. Finally, Citigroup upgraded the stock to a “Buy” rating in a report they issued on a January 7.

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 buys, and 1 sale for a total of $1.30 million in net activity. Sloan Timothy J sold 24,000 shares worth $1.30M. Strother James M sold 31,000 shares worth $1.81 million. Loughlin Michael J sold 20,000 shares worth $1.12M. 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 $228.26 billion. The Company’s divisions are Community Banking, Wholesale Banking, and Wealth and Brokerage and Retirement. It has 10.84 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.