Wells Fargo will report earnings before Thursday's open
Bank stocks are in focus this week, as a number of financial institutions are slated to step into the earnings confessional. Wells Fargo & Co (NYSE:WFC), for instance, is slated to report first-quarter results before the market's open on Thursday, April 14, and analysts are estimating profits of 82 cents per share. Below, we'll take a closer look at Wells Fargo's earnings history and its current technical setup.
In the last eight quarters, Wells Fargo stock has had a negative earnings reaction five times. In the last two years overall, WFC averaged a 4.6% move the day after earnings, regardless of direction. This time around, the options market is pricing in a slightly larger 6.9% post-earnings move.
On the charts, the equity managed to nab a four-year high of $60.30 in early February. The shares have pulled back in the time since, staging bounces off the $46 region. While Wells Fargo stock was last seen up 1.8% today to trade at $49.62, the 180-day moving average is keeping a firm lid on further gains. Longer-term, WFC is 22.3% higher in the last 12 months.
Citigroup is targeting the security ahead of earnings, upgrading WFC to "buy" from "neutral," though the firm slashed its price target to $56 from $58. The majority of covering brokerages are already bullish toward the stock, with 11 out of 13 rating it a "buy" or better. The 12-month consensus price target of $61.09, meanwhile, is a 23.2% premium to Wells Fargo stock's current level of trading.