Wells Fargo & Co (NYSE:WFC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Wednesday, Zacks.com reports.

According to Zacks, “Shares of Wells Fargo underperformed the industry, over the past six months. Its earnings surprise history is decent, having beaten the Zacks Consensus Estimate in two of the trailing four quarters. The first-quarter 2019 results reflect lower expenses and elevated net interest income, partly offset by decline in loans and deposits. However, fee income and provisions disappointed. Ongoing investment in the businesses to enhance compliance and risk management capability, build a better bank and strengthen core infrastructure, bodes well. However, Wells Fargo was slapped with several sanctions, including a cap on the assets by the Federal Reserve which will continue, as recently the U.S. Consumer Financial Protection Bureau director expressed her dissatisfaction with the bank’s progress fixing its risk management issues, following the company’s involvement in several legal issues. Also, falling mortgage banking income is a concern.”

A number of other analysts have also recently issued reports on the company. Deutsche Bank reduced their price objective on Wells Fargo & Co from $54.00 to $48.00 and set a “hold” rating for the company in a research report on Monday, April 15th. Raymond James raised Wells Fargo & Co from an “underperform” rating to a “market perform” rating and set a $50.08 price objective for the company in a research report on Friday, March 29th. Barclays reduced their price objective on Wells Fargo & Co from $64.00 to $60.00 and set an “overweight” rating for the company in a research report on Monday, April 15th. Goldman Sachs Group cut Wells Fargo & Co from a “buy” rating to a “neutral” rating and reduced their price objective for the company from $58.00 to $48.00 in a research report on Friday, April 12th. Finally, Keefe, Bruyette & Woods cut Wells Fargo & Co from an “outperform” rating to a “market perform” rating and reduced their price objective for the company from $58.00 to $50.00 in a research report on Sunday, March 31st. Two investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and seven have given a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus target price of $56.22.

Shares of Wells Fargo & Co stock traded down $0.15 during midday trading on Wednesday, hitting $46.18. The company’s stock had a trading volume of 354,795 shares, compared to its average volume of 21,902,617. The stock has a market cap of $222.72 billion, a PE ratio of 10.54, a price-to-earnings-growth ratio of 0.86 and a beta of 1.09. The company has a quick ratio of 0.87, a current ratio of 0.88 and a debt-to-equity ratio of 1.35. Wells Fargo & Co has a 1-year low of $43.02 and a 1-year high of $59.53.

Wells Fargo & Co (NYSE:WFC) last issued its earnings results on Friday, April 12th. The financial services provider reported $1.20 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.08 by $0.12. The business had revenue of $21.61 billion during the quarter, compared to analysts’ expectations of $20.89 billion. Wells Fargo & Co had a return on equity of 13.37% and a net margin of 22.59%. During the same quarter last year, the firm posted $0.96 earnings per share. Analysts expect that Wells Fargo & Co will post 4.75 EPS for the current fiscal year.

In other news, insider Petros G. Pelos sold 28,304 shares of Wells Fargo & Co stock in a transaction dated Monday, May 13th. The stock was sold at an average price of $46.51, for a total value of $1,316,419.04. Following the transaction, the insider now directly owns 3,066 shares in the company, valued at $142,599.66. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.08% of the company’s stock.

Several institutional investors have recently bought and sold shares of WFC. Orrstown Financial Services Inc. increased its stake in Wells Fargo & Co by 125.9% during the first quarter. Orrstown Financial Services Inc. now owns 515 shares of the financial services provider’s stock valued at $25,000 after acquiring an additional 287 shares during the period. Horan Capital Advisors LLC. bought a new position in Wells Fargo & Co during the first quarter valued at about $27,000. Brand Asset Management Group Inc. increased its stake in Wells Fargo & Co by 96.8% during the first quarter. Brand Asset Management Group Inc. now owns 492 shares of the financial services provider’s stock valued at $31,000 after acquiring an additional 242 shares during the period. Nalls Sherbakoff Group LLC bought a new position in Wells Fargo & Co during the fourth quarter valued at about $32,000. Finally, Roble Belko & Company Inc increased its stake in Wells Fargo & Co by 46.1% during the first quarter. Roble Belko & Company Inc now owns 691 shares of the financial services provider’s stock valued at $33,000 after acquiring an additional 218 shares during the period. Institutional investors and hedge funds own 72.01% of the company’s stock.

About Wells Fargo & Co

Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. It operates through three segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. The company also engages in the wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, computer and data processing, trust, investment advisory, mortgage-backed securities, and venture capital investment services.

Read More: What does the Dow Jones Industrial Average (DJIA) measure?

Get a free copy of the Zacks research report on Wells Fargo & Co (WFC)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Wells Fargo & Co (NYSE:WFC)

Receive News & Ratings for Wells Fargo & Co Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Wells Fargo & Co and related companies with MarketBeat.com's FREE daily email newsletter.