A Reversal for Wells Fargo & Co Is Not Near. Professional Options Traders Are Bullish

 A Reversal for Wells Fargo & Co Is Not Near. Professional Options Traders Are Bullish

In today’s session Wells Fargo & Co (WFC) registered an unusually high (8,341) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the June, 2017 call, expecting serious WFC increase. With 8,341 contracts traded and 155044 open interest for the Jun, 17 contract, it seems this is a quite bullish bet. The option with symbol: WFC170616C00050000 closed last at: $4.65 or 3.1% down. About 2.12M shares traded hands. Wells Fargo & Co (NYSE:WFC) has risen 4.18% since April 25, 2016 and is uptrending. It has underperformed by 1.84% the S&P500.

Analysts await Wells Fargo & Co (NYSE:WFC) to report earnings on January, 13 before the open. They expect $1.01 EPS, down 1.94% or $0.02 from last year’s $1.03 per share. WFC’s profit will be $5.12 billion for 12.92 P/E if the $1.01 EPS becomes a reality. After $1.03 actual EPS reported by Wells Fargo & Co for the previous quarter, Wall Street now forecasts -1.94% negative EPS growth.

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. $67 is the highest target while $44 is the lowest. The $54.46 average target is 4.31% above today’s ($52.21) stock price. Wells Fargo & Company has been the topic of 52 analyst reports since July 29, 2015 according to StockzIntelligence Inc. The firm has “Neutral” rating given on Wednesday, September 21 by JP Morgan. The firm has “Buy” rating by Evercore given on Tuesday, September 8. The stock of Wells Fargo & Co (NYSE:WFC) earned “Strong-Buy” rating by Vetr on Friday, August 28. The stock has “Underperform” rating given by BMO Capital Markets on Friday, November 18. The rating was initiated by UBS with “Sell” on Thursday, March 24. Nomura maintained the stock with “Buy” rating in Monday, April 25 report. The rating was maintained by UBS on Thursday, September 15 with “Sell”. The firm has “Hold” rating given on Monday, April 11 by Sandler O’Neill. On Tuesday, October 4 the stock rating was downgraded by Raymond James to “Underperform”. The firm has “Buy” rating given on Thursday, January 7 by Citigroup.

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 worsened, 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.
Tortoise Invest Mngmt Ltd Liability Company, a New York-based fund reported 425 shares. The Georgia-based Invesco has invested 0.28% in Wells Fargo & Co (NYSE:WFC). The California-based Blackrock Institutional Trust Na has invested 0.94% in Wells Fargo & Co (NYSE:WFC). Mechanics Bancorp Department holds 60,091 shares or 1.05% of its portfolio. Fulton Fincl Bank Na accumulated 50,433 shares or 0.23% of the stock. Perkins Invest Mgmt Limited Company, a Illinois-based fund reported 1.09M shares. Welch Gp Ltd Llc has invested 0.15% of its portfolio in Wells Fargo & Co (NYSE:WFC). United Fire Group Inc Inc accumulated 4.83% or 255,086 shares. Sonata Cap reported 6,350 shares or 0.26% of all its holdings. Schnieders Capital Mgmt Lc last reported 116,061 shares in the company. Tiemann Lc owns 21,164 shares or 0.94% of their US portfolio. Washington Capital Mgmt accumulated 1.17% or 17,450 shares. Oxbow Limited has invested 0.2% of its portfolio in Wells Fargo & Co (NYSE:WFC). Huntington Retail Bank reported 897,638 shares or 1.19% of all its holdings. Moreover, Copeland Cap Mgmt Limited Liability Corp has 0.16% invested in Wells Fargo & Co (NYSE:WFC) for 50,296 shares.

Insider Transactions: Since August 8, 2016, the stock had 0 insider buys, and 1 sale for $1.00 million net activity. Another trade for 20,500 shares valued at $1.00 million was sold by SLOAN TIMOTHY J.

Wells Fargo & Company is a bank holding company. The company has a market cap of $264.53 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 12.94 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: “Wells Fargo employees sue over funds in retirement plans” on November 25, 2016, also Reuters.com with their article: “Wells Fargo asks US court to dismiss account scandal lawsuit” published on November 24, 2016, Investorplace.com published: “Wells Fargo & Co (WFC) Stock Slapped With New Regulatory Restrictions” on November 21, 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 Reuters.com‘s news article titled: “Exclusive: Four large Wells Fargo shareholders want more action from board” with publication date: November 15, 2016.

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