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How to buy Wells Fargo shares | $22.83

Own Wells Fargo shares in just a few minutes.

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Wells Fargo & Company is a banks—diversified business with stocks listed in the US. Wells Fargo shares (WFC) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$22.83 – a decrease of 9.08% over the previous week.

How to buy shares in Wells Fargo

  1. Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Wells Fargo. Find the share by name or ticker symbol: WFC. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Wells Fargo reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of US$22.83, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Wells Fargo, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Wells Fargo. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Wells Fargo's share price?

Since the stock market crash in March caused by coronavirus, Wells Fargo's share price has had significant negative movement.

Its last market close was US$22.83, which is 52.14% down on its pre-crash value of US$47.7 and 9.96% down on the lowest point reached during the March crash when the shares fell as low as US$25.105.

If you had bought US$1,000 worth of Wells Fargo shares at the start of February 2020, those shares would have been worth US$535.81 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$484.45.

Wells Fargo share price

Use our graph to track the performance of WFC stocks over time.

Wells Fargo shares at a glance

Information last updated 2020-09-20.
Latest market closeUSD$22.83
52-week rangeUSD$23.08 - USD$54.75
50-day moving average USD$24.5262
200-day moving average USD$26.8356
Target priceUSD$29.83
PE ratio 27.9
Dividend yield USD$0.4 (1.59%)
Earnings per share (TTM) USD$0.928

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Is it a good time to buy Wells Fargo stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Wells Fargo price performance over time

Historical closes compared with the last close of $22.83

1 week (2020-09-13) N/A
1 month (2020-08-24) -6.78%
3 months (2020-06-24) -12.60%
6 months (2020-03-24) -21.06%
1 year (2019-09-20) -53.05%
2 years (2018-09-20) -58.90%
3 years (2017-09-20) -57.53%
5 years (2015-09-20) N/A

Is Wells Fargo under- or over-valued?

Valuing Wells Fargo stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Wells Fargo's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Wells Fargo's P/E ratio

Wells Fargo's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 28x. In other words, Wells Fargo shares trade at around 28x recent earnings.

That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).

Wells Fargo's PEG ratio

Wells Fargo's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.0665. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Wells Fargo's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Wells Fargo financials

Revenue TTM US$62.7 billion
Operating margin TTM 8.03%
Gross profit TTM US$82.5 billion
Return on assets TTM 0.3%
Return on equity TTM 3.11%
Profit margin 9.19%
Book value 38.636
Market capitalisation US$103.5 billion

TTM: trailing 12 months

Shorting Wells Fargo shares

There are currently 32.2 million Wells Fargo shares held short by investors – that's known as Wells Fargo's "short interest". This figure is 7.5% down from 34.8 million last month.

There are a few different ways that this level of interest in shorting Wells Fargo shares can be evaluated.

Wells Fargo's "short interest ratio" (SIR)

Wells Fargo's "short interest ratio" (SIR) is the quantity of Wells Fargo shares currently shorted divided by the average quantity of Wells Fargo shares traded daily (recently around 35.4 million). Wells Fargo's SIR currently stands at 0.91. In other words for every 100,000 Wells Fargo shares traded daily on the market, roughly 910 shares are currently held short.

However Wells Fargo's short interest can also be evaluated against the total number of Wells Fargo shares, or, against the total number of tradable Wells Fargo shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Wells Fargo's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Wells Fargo shares in existence, roughly 10 shares are currently held short) or 0.0078% of the tradable shares (for every 100,000 tradable Wells Fargo shares, roughly 8 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Wells Fargo.

Find out more about how you can short Wells Fargo stock.

Wells Fargo's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Wells Fargo.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Wells Fargo's total ESG risk score

Total ESG risk: 30.29

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Wells Fargo's overall score of 30.29 (as at 07/31/2020) is pretty weak – landing it in it in the 62nd percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Wells Fargo is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Wells Fargo's environmental score

Environmental score: 2.65/100

Wells Fargo's environmental score of 2.65 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Wells Fargo is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Wells Fargo's social score

Social score: 15.06/100

Wells Fargo's social score of 15.06 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Wells Fargo is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Wells Fargo's governance score

Governance score: 15.58/100

Wells Fargo's governance score puts it squarely in the 4th percentile of companies rated in the same sector. That could suggest that Wells Fargo is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Wells Fargo's controversy score

Controversy score: 5/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Wells Fargo scored a 5 out of 5 for controversy – the lowest score possible, reflecting that Wells Fargo's public profile has been damaged by multiple incidents.

Environmental, social, and governance (ESG) summary

Wells Fargo & Company was last rated for ESG on: 2020-08-01.

Total ESG score 30.29
Total ESG percentile 61.92
Environmental score 2.65
Environmental score percentile 4
Social score 15.06
Social score percentile 4
Governance score 15.58
Governance score percentile 4
Level of controversy 5

Wells Fargo share dividends

Dividend payout ratio: 226.67% of net profits

Recently Wells Fargo has paid out, on average, around 226.67% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.59% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Wells Fargo shareholders could enjoy a 1.59% return on their shares, in the form of dividend payments. In Wells Fargo's case, that would currently equate to about $0.4 per share.

Wells Fargo's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Wells Fargo's most recent dividend payout was on 31 August 2020. The latest dividend was paid out to all shareholders who bought their shares by 5 August 2020 (the "ex-dividend date").

Have Wells Fargo's shares ever split?

Wells Fargo's shares were split on a 2:1 basis on 13 August 2006. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Wells Fargo shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Wells Fargo shares which in turn could have impacted Wells Fargo's share price.

Wells Fargo share price volatility

Over the last 12 months, Wells Fargo's shares have ranged in value from as little as US$23.08 up to US$54.75. A popular way to gauge a stock's volatility is its "beta".

WFC.US volatility(beta: 1.08)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Wells Fargo's is 1.0831. This would suggest that Wells Fargo's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

Wells Fargo overview

Wells Fargo & Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services to individuals, businesses, and institutions in the United States and internationally. It operates in three segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. The Community Banking segment offers checking and savings accounts; credit and debit cards; and automobile, student, mortgage, home equity, and small business lending products. The Wholesale Banking segment provides commercial, corporate, capital markets, cash management, and real estate banking products and services, including traditional commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection services, foreign exchange services, treasury management, institutional fixed-income sales, interest rate, commodity and equity risk management, online/electronic products, corporate trust fiduciary and agency services, and investment banking services. It also offers commercial and residential development, land acquisition and development, rehabilitation, permanent securitization, and commercial real estate loans; secured and unsecured lines of credit; affordable housing loans and letters of credit; and interim financing arrangements. The Wealth and Investment Management segment provides personalized wealth management, investment, and retirement products and services; and delivers financial planning, private banking, credit, investment management, and fiduciary services. The company also offers brokerage, and Internet and mobile banking services; and has collaboration with National LGBT Chamber of Commerce. As of March 16, 2020, it operated through 7,400 locations; approximately 13,000 ATMs; and offices in 32 countries and territories. The Company was founded in 1852 and is headquartered in San Francisco, California.

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