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- 1 Wells Fargo’s stock price is up by over 10% year-to-date.
- 2 The leading US bank reported better-than-estimated earnings on July 14, 2023.
- 3 US bank regulators call for regulation likely to apply to Wells Fargo.
Top banking regulators in the United States brought a plan forward seeking to strengthen bank regulations. The plan dubbed ‘Basel III endgame’ is said to cover the financial institutions in the region with $100 Billion or more in assets. Given the conditions, Wells Fargo (NYSE: WFC) falls in a similar category and is likely to abide by the rules. Wells Fargo’s stock price did not show any major movement following the news.
Wells Fargo Stock Price Following the Call for Regulation
The announcement of the plan came on Thursday, July 27 2023 following the collaboration of three US banking regulators: the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation.
According to the proposal, the banks with $100 Billion or more in assets would be required to have enough capital to sustain through potentially tough financial circumstances. Earlier, the obligation was to follow the specific rules to ensure the funds were limited to the banks with $250 Billion in assets. In rare cases, it also applied to small-scale banks.
With the recent announcement, the bar for compliance came down to include the banks with over $100 Billion in assets. In parallel, the standard would be intact for the biggest banks in the region.
The major banks could show the reaction following the news but there are no significant movements noted. Wells Fargo’s stock price is barely half a percent up since the announcement.
Wells Fargo (NYSE: WFC) Stands at Impressive Earnings
For the recent quarterly earnings, Wells Fargo reported better-than-expected earnings as that was more than the previous year’s numbers. The revenue for Q2 2023 stood at $18.82 Billion marking an increase of over 14% year-over-year. It made tremendous growth of 58% in net income reporting $4.94 Billion. The earnings per share (EPS) remains at $1.25 for the quarter, an increase of over 50% in a year.
Wells Fargo Stock Price Movement
Wells Fargo’s stock price closed at $46.16 on the last intraday trading session on July 31, Monday. The stock price sustains an up move since May 2023 and rose over 25% from $36 price support. Following the second quarter earnings release, WFC stock took an up move and increased by 6%. The price level of $43 acts as immediate support.
The 50-day and 200-day moving averages recently saw a golden crossover pushing the price up while strengthening the uptrend. RSI at 65 confirms the up move in WFC stock price and signals for it to continue. MACD is moving forward to meet a crossover soon, another indicator for the stock price to sustain a high.
If Wells Fargo’s stock price manages to sustain the upward momentum, it could attain the yearly high at the immediate hurdle of $48. From the current level, the price would need to gain approximately 5% to hit the mark.
Disclaimer
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Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
