Shares of Wells Fargo & Co. (NYSE: WFC) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Sell on the stock, the company has a 52-week high of $56.34. As a means of comparison, a number of other analysts have commented on the stock recently, and Wells Fargo & Co. has earned a consensus one-year price target of $52.21, above the opening price of $47.15. Material and major changes in the company’s operations, future outlook or industry can cause downgrades as the analysts feel that the future prospects for the security have dropped from the original recommendation.
U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.
The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.
The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.
The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.
Shares of Wells Fargo & Co. (NYSE: WFC) opened at $47.15 yesterday and traded in a range between, $46.12 and $47.20, and last traded at $46.56, a jump of $0.55 over the previous closing price.
Wells Fargo & Co. (NYSE: WFC) currently has a market cap of 234.92B.
51,510,381 shares crossed the trading desk yesterday, 37 percent above the norm, out of a total float 4,532,112,000. Substantial gains in trading volume and price appreciation together could mean considerable volume accumulation by institutional investors.
While higher trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
Traders can make educated trades when they follow the trading habits of professional investors.
With that in mind, Wells Fargo & Co. (NYSE: WFC) now has a 50-day MA of $48.44 and 200-day MA of $48.63. It has traded in a 52-week range between $44.50 – 56.34 and today’s last price is 0.17% lower than the 52 week high of $56.34.
Earnings growth is a crucial factor to research when buying stocks and investors watch for companies that have raised their earnings at least 25% or more over a 3 year period.
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