Per CapitolTrades.com, a data platform keeping track of politicians’ trades, Dan Sullivan, an American politician and a U.S. Senator from Alaska, recently traded shares of Wells Fargo (NYSE:WFC). According to the data, Sullivan sold Wells Fargo stock in March, and the transaction had a size range of $1-$15K.
Using TipRanks’ data, let’s find out what’s on the horizon for WFC stock.
What’s the Prediction for WFC Stock?
Banking giant Wells Fargo recently delivered stronger-than-expected earnings for the first quarter of 2023. Its revenue increased both year-over-year and sequentially, reflecting higher interest rates and loan balances. Moreover, improved trading results across all asset classes supported its top-line growth.
Leverage from higher revenue and efficiency initiatives cushioned its bottom line. Wells Fargo reiterated its 2023 net interest income guidance and expects it to grow by 10% in 2023.
While the financial services giant delivered strong Q1 performance, it failed to lift its stock price higher as the drop in average deposits, weakness in the commercial real estate market, and continued increase in provisions for credit losses remained a drag.
Following the Q1 result, Citigroup analyst Keith Horowitz cut WFC’s price target to $50 from $52. However, he reiterated his Buy recommendation, citing the firm’s guidance as “very conservative.”
At the same time, Odeon Capital analyst Richard Bove maintained his bullish stance on WFC stock due to its attractive valuation.
Overall, WFC stock has received 12 Buy and four Hold recommendations for a Strong Buy consensus rating. Analysts’ average price target of $47.04 implies 18.61% upside potential.
Bottom Line
Investors could benefit from keeping track of politicians’ trades. At the same time, one can leverage TipRanks’ Experts Center tool to make informed investment decisions with ease. As for the WFC stock, analysts’ Strong Buy consensus rating is positive. The bank expects to grow its net interest income and benefit from tight expense control. However, the deterioration of assets amid a weak macro environment could pose challenges.
