Wells Fargo & Co (NYSE:WFC) has been awarded an A+ credit rating, with a 3-star rating for its stock, by analysts at Morningstar. The announcement came after the company released its 1Q2015, beating analyst estimates by a good margin. The report indicated $1.04 earnings per share. However, the views of some other analysts are quite different.
Analysts at BMO capital markets downgraded the stock to an underperform rating, following the recent decline of share value. Analysts at Oppenheimer have given the share a “market perform” rating, while those at Barclays rated the stock as an overweight. The analyst view has remained mixed for a while with three analysts giving the stock a sell rating, while thirteen gave it a hold rating, with ten analysts giving the stock a buy rating. Presently, the company has a consensus of “Hold”, with a price target of $56.82.
The 1Q2015 of the company saw it making revenue of $21.3 billion. However, the earnings per share were lower by $0.01 as compared to the same period previous year. This was despite the revenues reporting a 3.3% increase for the same period. The estimated EPS for this year is $4.16 for the company.
Following the decline in share value, the company VP, David M. Carroll, sold 77,000 shares of the company at an average price of $54.81. The total cash raised by this transaction was estimated to be $4 million. However, on April 14 the stock experienced a 355% increase in the daily volume of call options, reaching 46,000, compared to the usual 10,000. Since the announcement of its 1Q2015, the company has been compared to its counterpart J.P. Morgan Chase. The investors have, however, been showing more interest in J.P. Morgan, compared to Wells Fargo.
Wells Fargo & Co (NYSE:WFC) closed at $54.05, declining 1.39% on April 19. The company trades a huge 5.16 billion shares, with a 52 week range of $46.44-$56.29. Unfortunately, all bank stocks including WFC and JPM have been underperforming in the market recently.