While the financial sector is still sitting in the red so far this morning, Wells Fargo (NYSE:WFC) is being bandied about, turning from red to green and back again for much of the first hour of trading. That puts it above peers Bank of America (NYSE:BAC) and Citigroup (NYSE:C), both of which have been in negative territory so far today.
It's really not surprising that Wells' two pals are exhibiting malaise today. Citi was stung badly earlier this week with a particularly nasty research note from Charles Peabody, who sees the giant bank losing up to $7 billion on currency market swings this year. Bank of America has kept its stock price above $13 this week, though it has had good days and bad, depending upon the news coming out of the Article 77 hearing currently under way in Manhattan.
For its part, Wells has had more than its fair share of analyst attention this week, which may account for its staying below the $41 per share mark that it achieved late last week. On Wednesday, Atlantic Equities downgraded Wells to Underweight, mostly because the analyst saw concern with a slowdown in mortgage refinancing, a well-known moneymaker for Wells.
Earlier today, Sterne Agee dropped Wells from Buy to Neutral, while Jeffries is maintaining its Buy rating after meeting with Wells' management. The analyst group also raised its target price from $42 to $44 per share, noting that the bank has enough income diversity to continue growing earnings per share in future quarters.
Phew. That's a lot of analyst interest for one week, so Wells may be excused if its price experiences a little volatility today -- but don't let it spoil your weekend. As Foolish investors well know, a snapshot look at any given stock, taken in isolation, can be detrimental to the long-term view. The big picture, as always, is what really matters, and the normal ups and downs of the market are something that investors with their eyes on the prize take into consideration, knowing that these hills and valleys are just part of the business of intelligent, long-term investing.
Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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