If you’ve been watching the Wells Fargo stock chart lately, you’ve probably noticed something that hasn't happened in a long, long time. After years of basically being the "problem child" of the Big Four banks, Wells Fargo (WFC) has finally broken out. We’re talking about a stock that spent nearly seven years trapped in a regulatory cage.
Honestly, it’s been a wild ride. For years, the story was always about the "asset cap"—that invisible ceiling the Federal Reserve slapped on them back in 2018. It kept the bank from growing its balance sheet past $1.95 trillion. If you’re a bank, not being allowed to grow is basically like being a person who isn't allowed to breathe. But as of mid-2025, that cap is officially gone.
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The Breakout: Reading the New Wells Fargo Stock Chart
Take a look at the price action from the last few months. As of January 12, 2026, the stock is hovering around $95.00. Just a year ago, it was struggling to stay above $60. That’s a massive move for a bank this size.
The chart shows a clear "stair-step" pattern. We saw a huge spike in June 2025 when the Fed officially announced they were lifting the growth restrictions. Since then, the dips have been getting shallower. The 52-week high currently sits at $97.76, and every time it gets close to that level, the volume picks up.
People are finally buying the "growth" story instead of the "recovery" story. It’s a huge shift in sentiment.
Why the $95 level matters right now
Right now, the market is playing a game of chicken with the $100 mark. Analysts at places like Simply Wall St have a "fair value" estimate of about **$100.00**, and the consensus target from 50 different analysts is creeping up toward that psychological barrier.
But it’s not just about the price. Look at the earnings. Wells Fargo is set to report this Wednesday, January 14. Wall Street is expecting adjusted earnings of around $1.69 per share. If they beat that, the chart could easily punch through $100 before the end of the week.
What actually moved the needle?
It wasn't just luck. Charlie Scharf, the CEO, spent years cleaning up the mess from the 2016 fake-accounts scandal. They closed five major consent orders in early 2025 alone. That’s what paved the way for the Fed to finally say "okay, you’ve learned your lesson."
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- The Asset Cap Removal: This is the big one. Without the cap, Wells Fargo can finally compete for large corporate deposits and expand its lending.
- Investment Banking: They’ve been aggressively rebuilding their investment banking franchise. Now that they can deploy their balance sheet, they can actually bid for the big deals they used to lose to JPMorgan or BofA.
- Interest Rates: The Fed has been cutting rates—the latest was a 25-basis-point cut in December 2025. Usually, lower rates hurt bank margins, but for Wells, the ability to grow the size of their loan book is offsetting the smaller profit on each loan.
Dividends and the "Safety" Play
If you’re a dividend hunter, the Wells Fargo stock chart tells a pretty comforting story. The current quarterly dividend is $0.45, which works out to a yield of about 1.89%.
They’ve increased the dividend for six years in a row now. With a payout ratio of only about 30%, they have plenty of room to keep hiking it. Plus, they’ve been aggressive with stock buybacks. When a company buys back its own stock, it reduces the number of shares out there, which makes your shares more valuable. It’s a classic move when a bank feels like its stock is still undervalued compared to its peers.
Comparing WFC to the competition
Kinda interesting to see how they stack up against the others:
- JPMorgan (JPM): The gold standard, but it trades at a much higher premium.
- Bank of America (BAC): Strong, but hasn't had the "catalyst" of a major regulatory lift like Wells did.
- Citigroup (C): Still in the middle of its own massive turnaround, which makes it riskier.
Wells Fargo currently trades at a P/E ratio of about 15.1x. That’s higher than the industry average of 11.9x, but when you factor in the new growth potential, many traders think it’s actually still cheap.
The Risks: It’s Not All Sunshine
We have to talk about the "Trump effect" on credit cards. There’s been a lot of noise lately about a potential 10% cap on credit card interest rates. Since Wells Fargo has been leaning heavily into credit cards to grow, this is a real headwind.
If that policy actually goes through, it could take a bite out of their net interest income. You can see the "wobble" in the chart from just a few days ago when these headlines started hitting.
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Also, they still have three unresolved consent orders. While the big "asset cap" is gone, the regulators are still watching them like hawks. Any slip-up in compliance could send the stock tumbling back to the $80 range.
Actionable Insights for Your Portfolio
So, what do you actually do with this information?
- Watch the $95.50 Support: If the stock drops below this level before earnings on Wednesday, it might be a sign that big institutional players are taking profits.
- Monitor the "Asset Sensitivity": Pay close attention to management's comments on the earnings call regarding net interest income (NII). With rates falling, you want to hear how they plan to use their newly freed-up balance sheet to make up for lower spreads.
- Dividend Reinvestment: If you’re a long-term holder, the 1.88% yield isn't massive, but the growth rate of that dividend (over 13% recently) is impressive.
The Wells Fargo stock chart isn't just a line going up; it’s a map of a company finally getting its act together. Whether it hits $110 or stalls at $100 depends entirely on how well they execute now that the training wheels are off.
Next Steps for Investors: Log into your brokerage and set an alert for $97.80. If it breaks that 52-week high on high volume after Wednesday’s earnings, it could signal the start of a new leg up. Also, check the "Net Interest Margin" (NIM) in the upcoming Q4 report—this will tell you if the rate cuts are hurting them more than the asset growth is helping.