Wells Fargo stock is rising after the Federal Reserve lifted its 2018 asset cap restriction
Shares of financial giant Wells Fargo & Co (NYSE:WFC) are up 2.2% before the bell, after the Federal Reserve officially lifted its long-standing asset cap on the bank. The restriction, imposed in 2018 following Wells Fargo’s 2016 fake-accounts scandal, had capped the bank’s total assets at roughly $2 trillion and hindered its ability to grow.
Coming into today, WFC is up 7.7% in 2025 and boasts a 27.5% year-over-year lead. The shares have steadily rebounded from their April 7 low of $58.42 — their lowest point since October — and are now looking to break out above the $76 level.
Analysts are reacting to the news. Morgan Stanley raised its price target on WFC to $87, while BofA Global Research upped its forecast to $90. Though most brokerages are bullish, there's still room for upgrades, as eight of the 25 analysts in coverage maintain "hold" ratings.
Options traders were already leaning bullish prior to the Fed's decision. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), WFC sports a 50-day call/put volume ratio of 2.64, ranking in the 97th percentile of annual readings.
Plus, Wells Fargo stock's Schaeffer's Volatility Scorecard (SVS) stands at an impressive 94 out of 100, indicating the shares have consistently exceeded options traders’ volatility expectations — a favorable setup for premium buyers.