So, you’re looking at the Wells Fargo current stock price and wondering if the "Stagecoach" is finally picking up speed or just hitting another rut. Honestly, it’s a weird time for the bank. As of the market close on January 16, 2026, Wells Fargo (WFC) ended the day at $88.38. That’s down about 0.7% for the session, which isn't exactly a disaster, but it follows a pretty bumpy week after their latest earnings report.
You've probably noticed the ticker dancing around the high 80s lately. It’s a far cry from the sub-$40 days we saw during the pandemic, but it's also pulled back from its all-time closing high of **$96.39** hit just a few weeks ago on January 6. People are trying to figure out if the big "re-rating" of the bank is over or if there’s a second act coming.
Basically, the bank is in this strange transition phase. It’s finally "unchained" from the Federal Reserve’s asset cap—which, if you remember, was that massive regulatory straightjacket they wore for years after the fake accounts scandal. But now that they can grow, the market is asking a very fair, very annoying question: "Okay, you're free... so where's the money?"
The Reality of the Q4 2025 Earnings "Miss"
Two days ago, on January 14, Wells Fargo dropped its Q4 2025 results. If you just looked at the headlines, you’d be confused. They beat earnings expectations—coming in at $1.76 per share (adjusted) against the $1.66 analysts wanted. Yet, the stock took a hit.
Why? Revenue.
The bank brought in $21.3 billion, which was just a hair under what Wall Street projected. In the world of big banking, "just a hair" is enough to make traders grumpy. Investors are hyper-focused on Net Interest Income (NII). With the Fed expected to cut rates two or three times in 2026, there’s a fear that the "easy" money from high interest rates is evaporating.
- Net Income: $5.4 billion (up 6% year-over-year).
- ROTCE: 15% (Return on Tangible Common Equity).
- Efficiency Ratio: They are still hacking away at costs, with non-interest expenses down 1%.
CEO Charlie Scharf has been playing a long game. He’s spent billions fixing the plumbing and compliance. Now, he’s poaching talent from JPMorgan and Morgan Stanley to beef up the investment banking side. It’s working, sorta. Their M&A ranking jumped to 8th in the US last year. But investment banking is a fickle beast; you can't always bank on it when the economy gets jittery.
The Asset Cap Is Gone, But the Costs Aren't
For years, Wells Fargo couldn't grow its balance sheet past $1.95 trillion. Last June, the Fed finally lifted that "emergency brake." Since then, they’ve grown assets by about 11%. That’s a lot of new loans and trading activity.
But here’s the kicker: growing costs money. Truist Securities just trimmed their price target from $104 to **$100** because they see higher expenses sticking around. They’re projecting that 2026 EPS might be a bit lower than previously thought—around $6.95.
It’s expensive to compete with the big boys. Wells Fargo is refurbishing hundreds of branches and trying to make their mobile app not feel like it’s from 2012. About 50% of their checking accounts are now opened digitally. That’s great for the future, but it's a heavy lift on the balance sheet today.
Is the Dividend Enough to Keep You Around?
If you’re a "buy and hold" person, the Wells Fargo current stock price might look more attractive when you factor in the yield. Currently, the dividend yield is sitting around 2.04%. They paid out about $0.45 per share last quarter.
Is that the best in the sector? No. But they are aggressive with buybacks. In 2025, they returned a massive $23 billion to shareholders through dividends and repurchases. That’s a huge "safety net" for the stock price. When a company is buying back $5 billion of its own stock in a single quarter (like they did in Q4), it puts a floor under the price.
- Bull Case: They hit their medium-term target of 17% to 18% ROTCE. If they do that, the stock is likely headed to $110+.
- Bear Case: The "soft landing" for the economy turns into a "thud." If loan defaults rise—especially in commercial office space, which Wells is still cleaning up—the stock could drift back toward the $70s.
What Analysts Are Whispering Right Now
The "experts" are split, as they usually are. You’ve got Bank of America recently bumping their target to $107, calling the valuation a "discount" compared to peers like JPMorgan. On the flip side, Baird recently slapped an "Underperform" rating on it with a $90 target.
Baird's argument is basically that the "asset cap removal" trade is already priced in. They think the market is being too optimistic about how much Wells can actually grow in a cooling economy.
Honestly, it feels like a execution story now. The excuses are gone. No more regulatory handcuffs. No more "we're still fixing things" (mostly). Now, it’s just about whether they can grab market share in credit cards and investment banking without making a mess of things.
Actionable Insights for Investors
If you’re holding or looking to buy, here’s the "so what" of the current situation:
- Watch the $83-85 Level: This has acted as a support zone in the past. If the stock dips there, it might be a more comfortable entry point for those worried about the recent revenue miss.
- The 2026 NII Target: The bank is aiming for $50 billion in Net Interest Income for 2026. This is the "North Star." If they start falling behind on this in the Q1 or Q2 reports later this year, the stock will likely struggle.
- Buyback Momentum: Keep an eye on the CET1 ratio. They’re currently at 10.6% but want to manage it down to the 10% to 10.5% range. This means more room for share buybacks, which is always good for the share price.
- Sector Comparison: Don't trade Wells in a vacuum. If the 10-year Treasury yield stays stable as they expect, banks should do fine. If the yield curve inverts further or stays "wonky," the entire sector will feel the heat, regardless of how many branches Wells Fargo refurbishes.
The stock isn't the screaming bargain it was two years ago, but it’s not exactly "expensive" at a P/E of roughly 14x. It's a "show me" stock. You're betting on Charlie Scharf's ability to turn a former pariah into a high-performance machine. It's getting there, but as Friday's price action shows, the market isn't ready to give them a participation trophy just yet.
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To keep track of the next move, you should monitor the February 2026 institutional filings. That's when we'll see if the big hedge funds used this January dip to load up or if they’re starting to trim their positions after the big 2025 run-up.