Goldman Sachs Raises Price Target for Wells Fargo

Wells Fargo & Company (NYSE:WFC) received an upgraded price target from The Goldman Sachs Group, which increased its objective from $72.00 to $82.00 in a research note released on Friday. This new price target suggests a potential upside of 10.47% from the stock's previous close. The brokerage has assigned a "buy" rating for the financial services provider's shares.

In addition to this update from Goldman Sachs, Wells Fargo has been featured in multiple research reports from other analysts. For instance, Phillip Securities recently moved its rating from "neutral" to "accumulate," with a new price target of $65.00, up from $60.83. Furthermore, Deutsche Bank upgraded its rating on Wells Fargo from "hold" to "buy," setting a target price of $65.00 as well.

On September 30th, Morgan Stanley reduced its price target for Wells Fargo from $68.00 to $67.00 but maintained an "overweight" rating. Wolfe Research also upgraded the stock from a "peer perform" to an "outperform" rating with a target price of $65.00 on October 8th. Meanwhile, Royal Bank of Canada reaffirmed a "sector perform" rating and set a $61.00 target price.

Overall, the consensus among analysts appears to indicate a cautious optimism, with 13 analysts rating the stock as a hold, eight as a buy, and one rating it as a strong buy. According to MarketBeat.com, the consensus price target stands at approximately $65.47.

Wells Fargo's Stock Performance

Shares of Wells Fargo traded at $74.23, reflecting an increase of $0.57 midday on Friday, with 3,330,784 shares exchanged compared to an average volume of 18,021,836. The firm's market capitalization is approximately $247.15 billion, featuring a price-to-earnings (PE) ratio of 15.43 and a price-to-earnings-to-growth (PEG) ratio of 1.55. The stock recorded a 12-month low of $44.65 and a peak of $78.13, indicating significant volatility.

The most recent quarterly earnings report from Wells Fargo was issued on October 11th, revealing earnings per share (EPS) of $1.42, which exceeded the market consensus estimate of $1.28 by $0.14. Revenue for this quarter reached $20.37 billion, slightly below the consensus estimate of $20.40 billion. Despite this, the company maintains a substantial 14.43% net margin and a return on equity (ROE) of 12.25%. Year-on-year, Wells Fargo's revenue showed a decline of 2.4%.

Insider Transactions

Recent insider activity included that of EVP Beurden Saul Van, who sold 35,000 shares on October 14th at an average price of $61.99, totaling approximately $2.17 million. This transaction represented a decrease of 21.65% in their ownership. Another executive, EVP Ather Williams III, sold 60,000 shares on October 16th at an average price of $63.70 for about $3.82 million, reducing his stake by 26.83%. Currently, insiders hold 0.08% of Wells Fargo's shares.

Institutional Investments in Wells Fargo

A variety of institutional investors have recently adjusted their positions in Wells Fargo stock. Notably, Income Research & Management purchased shares worth $211,000. Other firms like Mattson Financial Services LLC and Strategic Investment Solutions made smaller investments, indicating a diverse interest in the company. Approximately 75.90% of Wells Fargo's shares are owned by institutional investors.

About Wells Fargo & Company

Wells Fargo & Company offers a wide range of financial services, including banking, investment, mortgage, and consumer finance products. The company operates through different segments, namely Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, as well as Wealth and Investment Management.

WellsFargo, GoldmanSachs, StockUpgrade