Taking a Fresh Look at Wells Fargo & Company (WFC)

Wells Fargo & Company (WFC) is an interesting player in the Financial space, with a focus on Money Center Banks. The stock has been active on the tape, currently trading at $53.72, down from yesterday’s close by -0.17%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

This company has been competing with others in the Financial space and offers its own combination of interesting factors Wells Fargo & Company (WFC) currently trades with a market capitalization of $265.66 Billion. That value represents a market adjusting for revenues that have been growing by 11.65 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For WFC, you can get a sense of how sustainable that is by a levered free cash flow of $13.64 Billion over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $1.02 on a per share basis this quarter. Perhaps, that suggests something about why 81.15% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Wells Fargo & Company recorded a 52-week high of $59.99. It is now trading 6.27% off that level. The stock is trading $54.04 its 50-day moving average by 0.32%. The stock carved out a 52-week low down at $49.27.

In recent action, Wells Fargo & Company (WFC) has made a move of -0.15% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.32, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 0.62% with $4.92 Billion sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of WFC.

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