Wells Story

WFC -  USA Stock  

USD 45.64  0.08  0.17%

It appears Wells Fargo may not recover as fast as we have hopped for as its price went down 2.4% today. The entity current daily volatility is 2.34 percent, with a beta of 0.84 and an alpha of 0.19 over DOW. As many millenniums are trying to avoid the current volatility, we are going to go over Wells Fargo a little further to understand its historical price patterns. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over three weeks ago
View all stories for Wells Fargo | View All Stories
Is Wells Fargo (NYSE:WFC) way too risky for millennials?
Wells Fargo has roughly 454.26 B in cash with 2.05 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 109.88, which can makes it an attractive takeover target, given it will continue generating positive cash flow. Wells Fargo has 293.42 B in debt with debt to equity (D/E) ratio of 8.26, demonstrating that Wells Fargo may be unable to create cash to meet all of its financial commitments.
Investing in Wells Fargo, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Wells Fargo along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Wells Fargo's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Wells Fargo in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Wells Fargo. Your research has to be compared to or analyzed against Wells Fargo's peers to derive any actionable benefits. When done correctly, Wells Fargo's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Wells Fargo.

How important is Wells Fargo's Liquidity

Wells Fargo financial leverage refers to using borrowed capital as a funding source to finance Wells Fargo ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Wells Fargo financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Wells Fargo's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Wells Fargo, but it might be worth checking our own buy vs. sell analysis

Wells Fargo Correlation with Peers

Investors in Wells can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Wells Fargo. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Wells Fargo and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Wells is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Wells for more details

Acquisition by Juan Pujadas of 93 shares of Wells Fargo subject to Rule 16b-3

Legal trades by Wells Fargo insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Wells insider trading alert for grant of common stock $1 23 par value by Juan Pujadas, the corporate stakeholder, on 29th of April 2021. This event was filed by Wells Fargo Company with SEC on 2021-04-29. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Wells Fargo Investor Appetite?

Wells Fargo appears to be very steady, given 1 month investment horizon. Wells Fargo shows Sharpe Ratio of 0.11, which attests that the company had 0.11% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Wells Fargo, which you can use to evaluate future volatility of the company. Please utilize Wells Fargo Downside Deviation of 2.37, market risk adjusted performance of 0.3553, and Mean Deviation of 1.8 to validate if our risk estimates are consistent with your expectations.
RF
FRC
USB
WFC
ZION
RF
0.90.840.920.93
RF
FRC
0.90.880.920.95
FRC
USB
0.840.880.960.93
USB
WFC
0.920.920.960.95
WFC
ZION
0.930.950.930.95
ZION
RF
FRC
USB
WFC
ZION
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Another small slip for Wells Fargo

Current Sortino Ratio is up to 0.07. Price may slip again.
As of the 14th of April 2021, Wells Fargo maintains the Market Risk Adjusted Performance of 0.3553, downside deviation of 2.37, and Mean Deviation of 1.8. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Wells Fargo, as well as the relationship between them. Specifically, you can use this information to find out if the company will indeed mirror its model of past data patterns, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Wells Fargo, which can be compared to its rivals. Please check out Wells Fargo treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if Wells Fargo is priced fairly, providing market reflects its latest price of 39.79 per share. Given that Wells Fargo has jensen alpha of 0.1926, we strongly advise you to confirm Wells Fargo's prevalent market performance to make sure the company can sustain itself at a future point.

Our Final Take On Wells Fargo

Whereas some firms within the banks?diversified industry are still a little expensive, even after the recent corrections, Wells Fargo may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Wells valuation and our trade advice on Wells Fargo is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Wells Fargo.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Wells Fargo. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com