Key Stats for Wells Fargo Stock
- Price change for Wells Fargo stock in the last 6 months: -5%
- $WFC Stock Price as of Oct. 7: $80
- 52-Week High: $98
- $WFC Stock Price Target: $99
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What Happened?
Wells Fargo (WFC) is facing a possible investigation from the Trump administration’s housing authority. The news puts Wells Fargo stock in the spotlight just days before the bank reports Q3 results.
The Wall Street Journal reported the story on Wednesday. It cited a letter from the Department of Housing and Urban Development (HUD) to CEO Charlie Scharf.
The letter reportedly says HUD will check whether the bank broke fair-lending laws by favoring Black or other minority homeowners.
The letter also said Wells Fargo “sorted” homeowners and offered different products or terms based on race, according to the Journal.
HUD Secretary Scott Turner plans a full investigation into the bank’s statements, a senior official told the paper. HUD is also reviewing similar efforts at other banks.
The focus is on programs meant to boost minority homeownership.
In 2017, Wells Fargo committed to lend $60 billion to help add at least 250,000 African American homeowners by 2027.
Reuters could not verify the report. Wells Fargo declined to comment. HUD did not immediately respond.
The probe adds to the broader push against diversity, equity and inclusion (DEI) policies since President Trump took office.
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What the Market Is Telling Us About Wells Fargo Stock
For Wells Fargo stock, this is a headline risk, not a business shock. Nothing has been confirmed, and no findings have been made.
The bank’s latest results were strong. In Q2, earnings per share rose 25% from a year ago to $2. Revenue grew 9%. Earnings reached $6.4 billion.
Loans and deposits are growing fast. Average loans rose 12% year over year. Average deposits climbed 10%.
Credit quality also looked healthy, with net loan charge-offs down 10 basis points from last year.
The bank is also returning cash to shareholders. It repurchased $7 billion of stock in the first half. Management plans to raise the Q3 dividend by 11% to $0.50 per share.
One soft spot is net interest margin, which management expects to dip further in Q3 before leveling off.
That worry already pressured the stock after the Q2 call, according to one analyst.
Wells Fargo stock now has one more item to weigh. Investors will likely listen closely to the bank’s report next week.
They may want to hear how management responds to the HUD letter.
Fines, legal costs or changes to lending programs could follow if the probe moves forward. For now, Wells Fargo stock will likely trade on updates from HUD and the bank.
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So what is Wells Fargo stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
