For bank stock Wells Fargo (NYSE:WFC), the news today wasn’t great for anyone except the investors and everybody there who got to keep their jobs today. Reports noted that Wells Fargo dropped a sizable portion of its staff in investment banking, and shareholders rewarded the move with a nearly 4% gain in share prices in the closing minutes of Tuesday’s trading.
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Wells Fargo dropped between 40 and 50 jobs, reports note, as investment banking is suffering a bit of a drought right now. With dealmaking activity on the decline, the biggest names in finance have been paring back their rosters and husbanding cash in a bid to hold out until the slump reverses and mergers, acquisitions, and similar matters pick back up. The impact is being felt with little concern toward level, as both managing director roles and junior positions are getting the axe. Admittedly, Wells Fargo is hardly down to a skeleton crew; as of September 30, it had 227,363 employees, so a loss of 50 isn’t that bad, except for those 50.
One Firm’s Loss is Another’s Gain
Interestingly, there are signs that, even for those 50 to lose jobs, the news may not be so grim. While Wells Fargo is cutting people loose, Ampersand Partners has been pulling them in. In fact, Ampersand has been hiring not only from Wells Fargo but also from Edward Jones. Ampersand has kept mum about its hirings, as it’s still looking for approval to operate from the Financial Industry Regulatory Authority. But it’s already brought on two Wells Fargo employees and eight from Edward Jones so far.
Is Wells Fargo Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WFC stock based on seven Buys and 10 Holds assigned in the past three months, as indicated by the graphic below. After a 7% drop in its share price over the past year, the average WFC price target of $48.13 per share implies 14.27% upside potential.
