WELLS FARGO

Analysis of Wells Fargo share price

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To perform proper analyses of the Wells Fargo share price, you need to have the necessary insight and know which elements are most likely to influence its performance. This is what you'll find throughout this article with information about the company and its specific activities, as well as a presentation of its direct competitors and its main strategic partners. We'll also have a look at the fundamental analysis of this stock with the elements to follow and integrate as a priority.

Elements that can influence the price of this asset:

Analysis N°1

The bank's activity diversification operations in emerging economies should be particularly monitored. Bear in mind that the group's offices are currently located on only 13 sites in the EMEA zone and do not concern retail customers or small businesses outside the United States. Operations aimed at a strengthened presence in Asia and Africa should be particularly monitored.

Analysis N°2

The diversification of this group's portfolio should also be closely monitored. This diversification could further protect Wells Fargo against the risk of bankruptcy through activities in stable or growing industries.

Analysis N°3

Additionally, in the United States, you should follow the development of Wells Fargo's presence in small towns with interest.

Analysis N°4

Economic activity and global growth are also elements to follow as part of your analyses of Wells Fargo as the banking activities are closely linked to it.

Analysis N°5

You should also monitor the efforts made by the group to regain the trust of the public as it has suffered several scandals that still weigh on its brand image today and can penalize its ability to gain new customers.

Analysis N°6

In the shorter term, you should follow the evolution of the global coronavirus pandemic and the recovery following this crisis which strongly penalized this bank with a drop of nearly 89% of its profits in 2020, particularly due to many unpaid bills.

Analysis N°7

Finally, it's also important to monitor the very intense competition in the banking sector, which aspires to be particularly dynamic and competitive, by monitoring the evolution of the market shares of each of its major players, particularly in the loan segment.

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General presentation of Wells Fargo

Now let's take a few moments to better understand who Wells Fargo is and what its core businesses are. Proper knowledge of this company will help you understand its possibilities for future evolution and development.

The Wells Fargo & Company group is an American banking company. More specifically, it is one of the main American banking groups today.

To better understand the group's activities, they can be divided into several divisions according to the percentage of turnover they generate as so:

  • The retail banking and commercial banking activities represent nearly 50.2% of the group's net banking income, with the sale of classic and specialized banking products and services such as home equity line of credit, mortgage, consumer credit and insurance.
  • Next come corporate, investment and market banking activities which generate 30.6% of net banking income.
  • Finally, the remaining 19.2% of GNI comes from wealth management, brokerage and pension fund management activities.

Currently, the Wells Fargo group manages nearly $ 1,322.6 billion in deposits and $ 962.3 billion in loans.

Analysis of Wells Fargo share price
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The major competitors of Wells Fargo

Now that you know the Wells Fargo group and its activities better, check out its sectorial environment with a quick presentation of the main players in its sector.

JPMorgan Chase & Co 

This NYSE-listed financial group is a financial holding company created by the merger of the Chase Manhattan Bank and JP Morgan & Co in 2001. This banking group is currently the largest bank in the United States and one of the most important in the world. The group operates in over sixty countries.

Bank of America 

Another banking group that competes directly with Wells Fargo is the Bank of America, also known by the abbreviation BOA. It is now one of the largest American banks in terms of deposits as well as in terms of market capitalization. Its head office has been based in North Carolina since its merger-absorption with NationsBank in 1998. Keep to mind that this banking group is also listed on the NYSE and has been part of the Dow Jones stock market benchmark since 2008.

Citigroup

Finally, Wells Fargo's third biggest competitor is none other than Citigroup Inc. which operates under the name Citi and is a major American financial firm based in New York. The latter was born from the merger of Citicorp and Travelers Group in 1998. Citigroup is also one of the world's largest banks, managing over $ 1.795 billion in assets while employing 219,000 people worldwide. Citigroup currently has nearly 200 million customers in over 100 different countries and is also included in the Dow Jones Industrial Average stock index which it integrated in 1997.


The major partners of Wells Fargo

Although the Wells Fargo banking group has many strong adversaries in its industry, it can also count on the support of certain strategic partners. To get some insight, here is a tangible and recent example of an alliance set up by this group.

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Frequently Asked Questions

Who are the major private shareholders of Wells Fargo?

The capital of the Wells Fargo group is partly owned by private shareholders including Berkshire Hathaway which owns 8.95%, The Vanguard Group with 7.47%, SSgA Funds Management with 4.12%, Capital Research & Management with 3.30%, BlackRock Fund Advisors with 2.36%, T Rowe Price Associates with 2.21%, Dodge & Cox with 2.02%, Putnam with 1.45%, Geode capital Management with 1.33% and State Farm Investment Management with 1.30%.

How did Wells Fargo Bank come about?

It was in March 1852 that the Wells Fargo Company was created in New York by Henry Wells and William Fargo who also created American Express with John Warren Butterfield thanks to an expansion of business in California where gold had just been discovered. The company rapidly expanded into banking and ground transportation, including the creation of Wells Fargo, a transportation company.

Where and How to Buy Wells Fargo Stocks?

Since Wells Fargo is American, it's not always easy to acquire securities from Europe. Fortunately, it is still possible to speculate on the price of this stock without having to buy it, by using CFDs (contracts for difference) offered by online brokers.

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