Factors Likely to Have Influenced Earnings Results Wells Fargo & Company (NYSE:WFC)

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Earnings results for Wells Fargo & Company (NYSE:WFC)

Wells Fargo & Company is expected* to report earnings on 10/14/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 12 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.47. The reported EPS for the same quarter last year was $0.92.

Wells Fargo & Company last released its earnings results on July 14th, 2020. The financial services provider reported ($0.66) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.16) by $0.50. The business earned $17.80 billion during the quarter, compared to analysts’ expectations of $18.30 billion. Its revenue for the quarter was down 17.5% on a year-over-year basis. Wells Fargo & Company has generated $4.38 earnings per share over the last year and currently has a price-to-earnings ratio of 28.4. Wells Fargo & Company has confirmed that its next quarterly earnings report will be published on Wednesday, October 14th, 2020.

Analyst Opinion on Wells Fargo & Company (NYSE:WFC)

24 Wall Street analysts have issued ratings and price targets for Wells Fargo & Company in the last 12 months. Their average twelve-month price target is $31.63, predicting that the stock has a possible upside of 27.83%. The high price target for WFC is $52.00 and the low price target for WFC is $23.00. There are currently 3 sell ratings, 15 hold ratings and 6 buy ratings for the stock, resulting in a consensus rating of “Hold.” Wells Fargo & Company also publishes sell-side equities research reports and recommendations about other companies, which can be viewed at this link.

Wells Fargo & Company has received a consensus rating of Hold. The company’s average rating score is 2.13, and is based on 6 buy ratings, 15 hold ratings, and 3 sell ratings. According to analysts’ consensus price target of $31.63, Wells Fargo & Company has a forecasted upside of 27.8% from its current price of $24.74. Wells Fargo & Company has been the subject of 7 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Wells Fargo & Company (NYSE:WFC)

Wells Fargo & Company pays a meaningful dividend of 1.56%, higher than the bottom 25% of all stocks that pay dividends. Wells Fargo & Company does not have a long track record of dividend growth. The dividend payout ratio of Wells Fargo & Company is 9.13%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Wells Fargo & Company will have a dividend payout ratio of 20.83% next year. This indicates that Wells Fargo & Company will be able to sustain or increase its dividend.

Insiders buying/selling: Wells Fargo & Company (NYSE:WFC)

In the past three months, Wells Fargo & Company insiders have not sold or bought any company stock. Only 0.09% of the stock of Wells Fargo & Company is held by insiders. 67.25% of the stock of Wells Fargo & Company is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Wells Fargo & Company (NYSE:WFC

Earnings for Wells Fargo & Company are expected to grow by 9,500.00% in the coming year, from $0.02 to $1.92 per share. The P/E ratio of Wells Fargo & Company is 28.44, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.81. The P/E ratio of Wells Fargo & Company is 28.44, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 18.66. Wells Fargo & Company has a PEG Ratio of 125.04. PEG Ratios above 1 indicate that a company could be overvalued. Wells Fargo & Company has a P/B Ratio of 0.63. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

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