Wells Fargo (WFC, $48.42) Shelled Out a Record $7.4 Billion in Share Buybacks, After Struggling With Scandal Over Two Years
Embroiled in scandals over recent years, Wells Fargo has been apparently trying to shake up its organization and appease shareholders. In the third quarter, the bank showered $7.4 billion towards share buybacks, which is nearly triple the amount it spent the year before.
In September 2016, Wells Fargo got itself in a controversy after announcing that it had fired 5,300 employees over several years for creating millions of fake accounts. Since then, Wells Fargo has spent an average of $3.2 billion each quarter on share repurchases, according to a CNN Business review of company filings. That’s 45% higher than what the bank typically spent during the prior eight quarters.
A company’s stock buyback lowers the count of its outstanding shares, and therefore potentially jacks up the company’s earnings per share (EPS). A higher EPS is usually attractive to investors, and is therefore expected to boost the stock’s demand. With its shares down -24% in the past year amidst scandals, Wells Fargo seems to have increasingly relied on share buybacks in hopes of bolstering its stock price.
Wells Fargo is also slashing jobs - apparently to deal with the shift in consumer preference to digital banking. In September, the company announced plans to cut as many as 26,500 jobs over three years.
The bank underwent a -3% drop in deposits in the third quarter on a year-over-year basis, as consumers and businesses held lower balances. It was also hurt by reduced mortgages, while several other big banks like JPMorgan Chase and Citigroup experienced positively solid loan growth in the third quarter.
WFC's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for WFC turned positive on June 24, 2025. Looking at past instances where WFC's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 20, 2025. You may want to consider a long position or call options on WFC as a result. In of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WFC advanced for three days, in of 319 cases, the price rose further within the following month. The odds of a continued upward trend are .
WFC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 290 cases where WFC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WFC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. WFC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 31, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.227) is normal, around the industry mean (0.958). P/E Ratio (11.928) is within average values for comparable stocks, (8.937). WFC's Projected Growth (PEG Ratio) (24.155) is very high in comparison to the industry average of (2.643). WFC has a moderately low Dividend Yield (0.023) as compared to the industry average of (0.053). P/S Ratio (2.595) is also within normal values, averaging (2.460).
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a major bank
Industry MajorBanks
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