Wells Fargo & Company (NYSE:WFC) Stock Price Target Lowered at Citigroup

Key Points

• Citigroup lowered Wells Fargo’s price target from $90 to $88 while maintaining a neutral rating, implying roughly 10% upside; analysts overall hold a “Moderate Buy” consensus with an average target of $98.08.
• Wells Fargo’s quarterly EPS of $1.87 slightly beat expectations, but revenue and net interest income came in below forecasts. The provision for credit losses also increased to $1.03 billion from $681 million a year earlier.
• Shares fell 0.9% to $80.03, while institutional investors owned 75.9% of the stock; several funds recently increased their positions.

Wells Fargo & Company (NYSE:WFC) had its target price lowered by equities research analysts at Citigroup from $90.00 to $88.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm currently has a "neutral" rating on the financial services provider's stock. Citigroup's target price indicates a potential upside of 9.95% from the stock's current price.

Several other brokerages have also issued reports on WFC. Weiss Ratings reissued a "buy (b)" rating on shares of Wells Fargo & Company in a research report on Friday, July 17th. Robert W. Baird lifted their price target on Wells Fargo & Company from $85.00 to $92.00 and gave the company a "neutral" rating in a research report on Wednesday, July 15th. Truist Financial upped their price target on Wells Fargo & Company from $94.00 to $95.00 and gave the stock a "buy" rating in a research note on Thursday, October 1st. Morgan Stanley decreased their price objective on Wells Fargo & Company from $102.00 to $101.00 and set an "overweight" rating for the company in a report on Wednesday. Finally, TD Cowen started coverage on shares of Wells Fargo & Company in a report on Thursday, October 8th. They set a "buy" rating and a $95.00 target price on the stock. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $98.08.

Wells Fargo & Company Trading Down 0.9%

Shares of NYSE WFC traded down $0.71 during midday trading on Wednesday, hitting $80.03. 12,678,453 shares of the company traded hands, compared to its average volume of 16,021,131. Wells Fargo & Company has a 12-month low of $72.78 and a 12-month high of $97.76. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.90 and a current ratio of 0.90. The stock has a 50-day moving average price of $85.58 and a 200 day moving average price of $83.25. The firm has a market cap of $242.02 billion, a P/E ratio of 11.63, a P/E/G ratio of 0.89 and a beta of 0.96.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last released its quarterly earnings results on Tuesday, October 13th. The financial services provider reported $1.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.85 by $0.02. Wells Fargo & Company had a net margin of 17.55% and a return on equity of 13.85%. The company had revenue of $21.87 billion during the quarter, compared to the consensus estimate of $22.31 billion. During the same period in the prior year, the firm earned $1.66 earnings per share. Wells Fargo & Company's revenue was up 2.0% on a year-over-year basis. As a group, analysts expect that Wells Fargo & Company will post 7.27 earnings per share for the current year.

Institutional Investors Weigh In On Wells Fargo & Company

Several hedge funds have recently added to or reduced their stakes in WFC. Perpetual Ltd increased its holdings in shares of Wells Fargo & Company by 5.8% during the third quarter. Perpetual Ltd now owns 38,784 shares of the financial services provider's stock valued at $3,105,000 after acquiring an additional 2,135 shares in the last quarter. Scott Capital Advisors LLC boosted its stake in Wells Fargo & Company by 1,380.4% in the 3rd quarter. Scott Capital Advisors LLC now owns 45,862 shares of the financial services provider's stock worth $3,681,000 after purchasing an additional 42,764 shares in the last quarter. HF Advisory Group LLC boosted its stake in Wells Fargo & Company by 5.6% in the 3rd quarter. HF Advisory Group LLC now owns 64,296 shares of the financial services provider's stock worth $5,147,000 after purchasing an additional 3,413 shares in the last quarter. Balefire LLC raised its holdings in Wells Fargo & Company by 7.2% in the third quarter. Balefire LLC now owns 5,996 shares of the financial services provider's stock worth $480,000 after buying an additional 404 shares during the last quarter. Finally, Decker Wealth Management LLC purchased a new position in Wells Fargo & Company in the third quarter worth about $332,000. 75.90% of the stock is owned by institutional investors.

Key Headlines Impacting Wells Fargo & Company

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

• Positive Sentiment: Profit beat and resilient operating trends: Third-quarter EPS rose 13% year over year to $1.87, exceeding the $1.85 consensus, while net income reached $5.95 billion. Average loans and deposits each grew 11%, operating expenses declined 1%, and wealth-management revenue increased 12%. Wells Fargo profit rises on robust loan growth, interest income
• Positive Sentiment: Analysts remain constructive: RBC maintained an Outperform rating and described Wells Fargo as increasingly positioned to pursue growth after seven years of regulatory restrictions, although it lowered its price target to $92. Morgan Stanley reiterated a Buy rating with a $101 target, citing a favorable net-interest-income trajectory and a stronger 2027 outlook. Wells Fargo is finally playing offense after restrictions
• Positive Sentiment: Consumer credit remains stable: CEO Charlie Scharf said consumers are still managing higher prices and borrowing costs, with no clear deterioration in credit yet. Jim Cramer also said the bank is positioned to make more money if rates remain elevated. Wells Fargo credit outlook
• Neutral Sentiment: Regulatory and strategic developments: A Treasury review found that reputation-risk policies at the nine largest national banks could allow political considerations to influence access to banking services, potentially creating compliance and reputational risks for WFC. Separately, Wells Fargo is preparing to join a consortium stablecoin planned for 2027, offering longer-term payments potential but uncertain near-term benefits. Treasury banks debanking review
• Negative Sentiment: Revenue and NII missed expectations: Total revenue was $21.87 billion versus the $22.31 billion forecast, while net interest income of $12.52 billion fell short of the $12.66 billion estimate. Management also reported sharply slower trading activity late in September, which pressured noninterest revenue. Wells Fargo trading activity slowed
• Negative Sentiment: Credit costs are rising: The provision for credit losses increased to $1.03 billion from $681 million a year earlier, and executives warned that inflation and higher rates could eventually weaken consumer credit.

Wells Fargo & Company Company Profile

Wells Fargo & Company NYSE: WFC is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals, businesses, institutions, and government entities. Its offerings include checking and savings accounts, credit cards, personal and commercial loans, mortgages, payment services, and other deposit and credit products.

The company also provides investment banking, capital markets, brokerage, advisory, asset management, and retirement services through its corporate and investment banking and wealth and investment management businesses.

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