Wells Fargo & Company (NYSE:WFC) Shares Down 4.9% – Time to Sell?

Wells Fargo & Company (NYSE:WFC)’s stock price was down 4.9% during trading on Wednesday . The stock traded as low as $88.76 and last traded at $88.97. Approximately 5,482,378 shares were traded during mid-day trading, a decline of 56% from the average daily volume of 12,508,980 shares. The stock had previously closed at $93.56.

Key Wells Fargo & Company News

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

• Positive Sentiment: Quarterly profit and EPS strength — Wells Fargo posted solid Q4 net income and earnings-per-share improvement versus a year ago, driven by higher interest income and trading activity, which supports the bank’s profitability narrative. Wells Fargo Reports Fourth Quarter 2025 Financial Results
• Positive Sentiment: Post-asset-cap growth thesis — analysts and commentators flagged this as Wells Fargo’s first full-scale post-asset-cap earnings test; management is positioning for faster growth now that the Fed’s cap is gone, which could re-rate long‑term investor expectations if execution continues. Wells Fargo Enters Its First Post-Asset-Cap Earnings Test
• Neutral Sentiment: New analyst coverage — CICC Research initiated coverage with a “market perform” rating and a $96 price target, giving a modest upside view but not a clear catalyst to drive momentum. CICC Research Coverage
• Negative Sentiment: Revenue and net‑interest-income misses — the quarter beat on EPS but missed consensus revenue and NII forecasts (reports cite revenue below estimates and NII came in light), which is the primary driver of the intraday weakness as investors focus on top‑line momentum. Wells Fargo comes up short on revenue as it sets new profit target
• Negative Sentiment: One‑time charges and lower guidance items — reports note severance/one‑time costs and a conservative near‑term interest‑income outlook that trimmed expectations for 2026, pressuring the stock despite underlying profit gains. Wells Fargo Stock: Earnings Miss Sends Shares Down After Strong 2025
• Negative Sentiment: Political/regulatory risk — broader bank headlines note escalating tensions over a proposed 10% cap on credit‑card interest rates from the White House; that policy risk and related rhetoric amplify investor caution for card-heavy lenders like WFC. Big banks report soaring profits amid tensions with Trump over credit card interest rates

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. UBS Group decreased their price objective on shares of Wells Fargo & Company from $95.00 to $93.00 and set a “buy” rating on the stock in a research note on Tuesday, October 7th. Wolfe Research reissued an “outperform” rating and issued a $109.00 price objective on shares of Wells Fargo & Company in a research note on Wednesday, January 7th. Citigroup raised their target price on Wells Fargo & Company from $85.00 to $90.00 and gave the company a “neutral” rating in a research note on Tuesday, September 23rd. Robert W. Baird reissued an “underperform” rating and set a $90.00 price objective on shares of Wells Fargo & Company in a report on Tuesday, January 6th. Finally, Truist Financial upped their target price on shares of Wells Fargo & Company from $100.00 to $104.00 and gave the stock a “buy” rating in a research report on Tuesday, January 6th. Twelve analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $94.03.

Wells Fargo & Company Price Performance

The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 1.07. The business has a 50 day simple moving average of $90.02 and a 200-day simple moving average of $84.69. The company has a market capitalization of $277.46 billion, a P/E ratio of 14.55, a PEG ratio of 0.87 and a beta of 1.09.

Wells Fargo & Company (NYSE:WFC) last announced its quarterly earnings results on Wednesday, January 14th. The financial services provider reported $1.76 EPS for the quarter, beating the consensus estimate of $1.65 by $0.11. The company had revenue of $21.29 billion for the quarter, compared to analyst estimates of $21.63 billion. Wells Fargo & Company had a net margin of 17.18% and a return on equity of 12.51%. Wells Fargo & Company’s revenue was up 4.5% compared to the same quarter last year. During the same quarter last year, the business earned $1.43 earnings per share. Analysts predict that Wells Fargo & Company will post 5.89 EPS for the current fiscal year.

Wells Fargo & Company Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, December 1st. Investors of record on Friday, November 7th were given a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date was Friday, November 7th. Wells Fargo & Company’s dividend payout ratio is currently 29.61%.

Hedge Funds Weigh In On Wells Fargo & Company

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Livforsakringsbolaget Skandia Omsesidigt grew its holdings in Wells Fargo & Company by 2,735,254.3% during the second quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 949,769,723 shares of the financial services provider’s stock worth $76,095,550,000 after acquiring an additional 949,735,001 shares during the period. Norges Bank acquired a new position in shares of Wells Fargo & Company in the 2nd quarter valued at $3,990,551,000. Massachusetts Financial Services Co. MA boosted its position in shares of Wells Fargo & Company by 54.9% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 16,635,681 shares of the financial services provider’s stock valued at $1,332,851,000 after purchasing an additional 5,894,747 shares during the period. Capital Research Global Investors increased its stake in Wells Fargo & Company by 18.6% in the 3rd quarter. Capital Research Global Investors now owns 35,660,903 shares of the financial services provider’s stock worth $2,989,104,000 after purchasing an additional 5,584,930 shares in the last quarter. Finally, Danske Bank A S acquired a new stake in Wells Fargo & Company during the 3rd quarter worth about $215,638,000. 75.90% of the stock is owned by institutional investors.

Wells Fargo & Company Company Profile

Wells Fargo & Company is a diversified, U.S.-based financial services company headquartered in San Francisco, California. Founded in 1852 by Henry Wells and William G. Fargo, the firm has evolved from its origins in express delivery and pioneer-era banking into one of the largest full-service banks in the United States. The company provides a broad range of financial products and services to individual, small business, commercial, and institutional clients. Charles W. Scharf serves as chief executive officer.

Wells Fargo operates across several core business segments, including consumer banking and lending, commercial banking, corporate and investment banking, and wealth and investment management.