Could Wells Fargo & Co Change Direction After Today’s Bearish Options Activity?

 Could Wells Fargo & Co Change Direction After Today's Bearish Options Activity?

In today’s session Wells Fargo & Co (WFC) recorded an unusually high (7,621) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the April, 2017 put, expecting serious WFC decrease. With 7,621 contracts traded and 22504 open interest for the Apr, 17 contract, it seems this is a quite bearish bet. The option with symbol: WFC170421P00050000 closed last at: $2.58 or 9.3% up. About 5.30M shares traded hands. Wells Fargo & Co (NYSE:WFC) has risen 7.47% since April 18, 2016 and is uptrending. It has outperformed by 3.04% the S&P500.

Wells Fargo & Co (NYSE:WFC) Ratings Coverage

Out of 27 analysts covering Wells Fargo & Company (NYSE:WFC), 14 rate it a “Buy”, 5 “Sell”, while 8 “Hold”. This means 52% are positive. Wells Fargo & Company has been the topic of 51 analyst reports since July 29, 2015 according to StockzIntelligence Inc. On Thursday, September 22 the stock rating was maintained by Deutsche Bank with “Buy”. On Thursday, October 15 the stock rating was maintained by Guggenheim with “Buy”. Piper Jaffray downgraded the stock to “Underweight” rating in Friday, April 15 report. The rating was upgraded by Susquehanna on Wednesday, January 20 to “Positive”. The rating was downgraded by Sandler O’Neill to “Hold” on Monday, April 11. The stock has “Neutral” rating given by JP Morgan on Wednesday, September 21. The firm earned “Outperform” rating on Tuesday, January 12 by Keefe Bruyette & Woods. The company was initiated on Tuesday, November 24 by Piper Jaffray. The stock has “Overweight” rating given by JP Morgan on Friday, October 9. UBS maintained it with “Sell” rating and $44 target price in Thursday, September 15 report.

According to Zacks Investment Research, “Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. (Company Press Release)”

Insitutional Activity: The institutional sentiment decreased to 0.97 in Q2 2016. Its down 0.26, from 1.23 in 2016Q1. The ratio dropped, as 72 funds sold all Wells Fargo & Co shares owned while 608 reduced positions. 100 funds bought stakes while 737 increased positions. They now own 3.66 billion shares or 2.46% less from 3.75 billion shares in 2016Q1.
Van Hulzen Asset Management Ltd Liability has invested 1.34% of its portfolio in Wells Fargo & Co (NYSE:WFC). Cubic Asset Limited owns 91,825 shares or 1.48% of their US portfolio. Oberweis Asset Mgmt Inc has 0.06% invested in the company for 4,362 shares. Piedmont Advsrs Limited Liability Company owns 1.87 million shares or 0% of their US portfolio. Institutional Capital Limited Company owns 5.55M shares or 3.21% of their US portfolio. Citigroup Incorporated has invested 0.14% of its portfolio in Wells Fargo & Co (NYSE:WFC). Moreover, Cobiz Invest Management Limited Liability Company has 1.55% invested in Wells Fargo & Co (NYSE:WFC) for 129,724 shares. First Financial Bank Tru Of Newtown has 0.24% invested in the company for 14,587 shares. Fairfield Bush & owns 183,101 shares or 3.01% of their US portfolio. Fred Alger Management last reported 0.03% of its portfolio in the stock. Marshfield Associate accumulated 6.38% or 1.89M shares. Augustine Asset Mgmt Inc holds 17,733 shares or 0.67% of its portfolio. Standard Life Investments Ltd has invested 1.79% of its portfolio in Wells Fargo & Co (NYSE:WFC). Parametric Risk Advsr Llc, a Connecticut-based fund reported 229,988 shares. Neumann Management Ltd Liability Co holds 1.03% of its portfolio in Wells Fargo & Co (NYSE:WFC) for 32,665 shares.

Insider Transactions: Since August 8, 2016, the stock had 0 insider purchases, and 1 sale for $1.00 million net activity. $1.00 million worth of Wells Fargo & Co (NYSE:WFC) was sold by SLOAN TIMOTHY J.

Wells Fargo & Company is a bank holding company. The company has a market cap of $269.44 billion. The Firm is a financial services company, which offers banking, insurance, trust and investments, mortgage banking, investment banking, retail banking, brokerage, and consumer and commercial finance. It has a 13.09 P/E ratio. It has three operating divisions: Community Banking, Wholesale Banking, and Wealth and Investment Management.

WFC Company Profile

Wells Fargo & Company, incorporated on January 24, 1929, is a bank holding company. The Firm is a diversified financial services company. The Firm has three operating divisions: Community Banking, Wholesale Banking, and Wealth and Investment Management. The Firm provides banking, insurance, trust and investments, mortgage banking, investment banking, retail banking, brokerage, and consumer and commercial finance through banking stores, the Internet and other distribution channels to consumers, businesses and institutions in approximately 50 states, the District of Columbia, and in foreign countries. The Firm operates through over 8,700 locations and approximately 13,000 automated teller machines (ATMs). The Company’s net loans include approximately $905,014 million. The Company’s total deposits include approximately $1.2 billion. The Company’s total investment securities include approximately $347.56 million.

More notable recent Wells Fargo & Co (NYSE:WFC) news were published by: Reuters.com which released: “Exclusive: Four large Wells Fargo shareholders want more action from board” on November 15, 2016, also Latimes.com with their article: “Wells Fargo opens fewer accounts after scandal, but deposits still climb” published on November 17, 2016, Reuters.com published: “Wells Fargo CEO says bank changing handling of whistleblower complaints” on November 10, 2016. More interesting news about Wells Fargo & Co (NYSE:WFC) were released by: Bloomberg.com and their article: “Wells Fargo’s Stars Thrived While 5000 Workers Got Fired” published on November 03, 2016 as well as Forbes.com‘s news article titled: “Wells Fargo Reaches Analyst Target Price” with publication date: November 11, 2016.

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