Fourth-Quarter Miss Sinks Wells Fargo Stock

Analysts are already quite bearish on the stock

Digital Content Manager
Jan 14, 2020 at 9:19 AM
facebook twitter linkedin


The shares of Wells Fargo & Co (NYSE:WFC) are struggling today. The bank concern stepped into the earnings confessional with adjusted fourth-quarter earnings of 93 cents per share, lower than the $1.12 estimates and down 55% year-over-year due to mounting legal costs and a lower interest rate environment. The firm also posted revenue of $19.9 billion that was below analysts' estimates. At last check, WFC is down 3.7% before the bell in response.

On the charts, the stock has been sinking lower after consolidating under the $54.50 region in November and December. Yesterday, WFC was testing its footing at the 80-day moving average -- a trendline the equity just finished south of for the first time in four months. The stock is still set to hang on to its year-over-year gain, though. 

While the brokerage bunch has been quiet this morning, there's already plenty of caution surrounding Wells Fargo. In fact, 17 in coverage call it a "hold" or worse, while only two see it as a "strong buy." What's more, the consensus 12-month target price of $53.33 is a slim 2.3% premium to last night's close of $52.11. 

There has been a preference for puts in the options pits. Currently, WFC sports a Schaeffer's put/call open interest ratio (SOIR) of 1.06, which sits in the 90th percentile of its annual range. This suggests that short-term option players have rarely been more put heavy in the last 12 months. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners