Wells Fargo shares close lower on Friday, group faces litigation related to mortgage, auto loans

According to a filing by Wells Fargo & Company (WFC) with the US Securities and Exchange Commission on Friday, the group is faced with litigation related to sales issues with its auto and mortgage lending.

Wells Fargo’s shares closed lower for the second time in the past seven trading sessions on Friday. The stock edged down 0.23% ($0.13) to $56.35, with the intraday high and the intraday low being at $56.44 and $55.90 respectively.

In the week ended on November 5th the shares of the third-largest US bank by assets added 0.86% to their market value compared to a week ago, which marked a third consecutive period of gains. Yet, it has been the smallest increase since the week ended on October 8th.

The stock has pared its advance to 0.37% so far during the current month, following a 1.80% surge in October. The latter has been a second straight month of gains.

For the entire past year, the shares of the NYSE-listed bank holding company gained 1.38%. The stock has risen another 2.25% so far in 2017.

Wells Fargo faced two class action cases, which accused the group of violating federal and state consumer fraud laws. There were also allegations by former bank employees, according to which they were dismissed after raising concerns regarding doubtful sales practices.

“The disclosures included in our filing today reflect the companys continued commitment to transparency”, a spokesperson for Wells Fargo wrote in an email, cited by Reuters. “Our top priority is to rebuild trust, and we remain focused on making things right for our customers, team members, community partners and shareholders”, the person added.

According to CNN Money, the 28 analysts, offering 12-month forecasts regarding Wells Fargo’s stock price, have a median target of $58.50, with a high estimate of $67.00 and a low estimate of $50.00. The median estimate is a 3.82% surge compared to the closing price of $56.35 on November 3rd.

The same media also reported that 16 out of 33 surveyed investment analysts had rated Wells Fargo’s stock as “Hold”, while 12 – as “Buy”. On the other hand, 3 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Wells Fargo stock are presented as follows:

R1 – $56.40
R2 – $56.45
R3 (Range Resistance – Sell) – $56.50
R4 (Long Breakout) – $56.65
R5 (Breakout Target 1) – $56.82
R6 (Breakout Target 2) – $56.89

S1 – $56.30
S2 – $56.25
S3 (Range Support – Buy) – $56.20
S4 (Short Breakout) – $56.05
S5 (Breakout Target 1) – $55.88
S6 (Breakout Target 2) – $55.81

By using the traditional method of calculation, the weekly levels of importance for Wells Fargo & Company (WFC) are presented as follows:

Central Pivot Point – $56.17
R1 – $57.02
R2 – $57.70
R3 – $58.55
R4 – $59.41

S1 – $55.49
S2 – $54.64
S3 – $53.96
S4 – $53.29