Stock Price & Analysis

Analysis and Insights

To determine whether to buy or sell WEX stock, we analyze both fundamental and technical factors.

Fundamental Analysis:

1. Insider Activity: Melanie J. Tinto, Chief People Officer, sold 3,243 shares, representing 38.3% of her holdings. All insider trades in the past six months were sales, indicating potential insider skepticism.

2. Institutional Movements: 171 institutions increased their positions, while 272 decreased theirs, showing mixed sentiment among large stakeholders.

3. Financial Offerings: WEX announced a $500 million senior notes offering to fund a tender offer for up to $750 million of its common stock and repay debt. This could signal undervaluation but is contingent on the tender offer's success.

4. Partnership Extension: The renewal with Circle K aims to enhance fleet management solutions, potentially driving growth.

Technical Analysis:

• RSI: 60.71, indicating a neutral position, not oversold or overbought.
• MACD: Slightly negative, suggesting mild bearish momentum.
• Fibonacci Levels: Support at 150.48 and resistance at 158.91.

Analyst Sentiment:

Analysts have mixed views, with some lowering price targets but maintaining positive ratings. The average target is around $160, slightly above the current price of $156.2.

Conclusion:

Given the mixed institutional sentiment, insider selling, and neutral technical indicators, it's prudent to hold WEX stock. The buyback plan and partnership are positives, but without stronger bullish signals, caution is advised.

The price prediction for WEX stock in 2025 is expected to range between $150 and $170, with a potential average target of $160. This forecast considers mixed analyst sentiment, technical resistance levels, and the company's strategic initiatives like stock buybacks.

The S1 support level for WEX Stock is $150.52 ,The R1 resistant level for WEX Stock is $158.95.

As of the end of day on 2025-03-26, the price of WEX Stock was $152.545.

The target price for WEX Stock according to analyst rating is 179.20, with the highest price target at 200.00 and the lowest at 160.00. Analysts have a Hold rating on WEX Stock overall.

The market cap of WEX is $6.0B.

Analysis and Insights

WEX Inc. (WEX) appears to be fairly valued based on current metrics and market sentiment. Here's a concise analysis:

1. Valuation Metrics:

   • PE Ratio: 26.64 (Q4 2024) is below industry averages, suggesting undervaluation.
   • EV/EBITDA: 23.39 indicates moderate valuation.
   • PS Ratio: 4.59 reflects reasonable pricing relative to revenue.
   • PB Ratio: 2.76 shows alignment with book value.

2. Analyst Sentiment:

   • Mixed ratings, with price targets lowered but maintaining "Hold" or "Buy" ratings. Analysts highlight WEX's market leadership but note growth challenges.

3. Technical Indicators:

   • RSI (50) and MACD (-1.64) suggest neutrality, with the stock near its Fibonacci pivot point (154.70).

4. Recent Developments:

   • Announced a $500M senior notes offering for buybacks and debt repayment, signaling confidence.
   • Extended partnership with Circle K, enhancing fleet solutions.

5. Insider Activity:

   • Insider sales (38.3% of holdings) and mixed institutional movements reflect uncertainty.

Conclusion:

WEX is not significantly overvalued. Its metrics and strategic initiatives suggest fair valuation with potential upside.

WEX Inc. provides a global commerce platform, which owns and operates a business-to-business (B2B) ecosystem. The Company operates through three segments: Mobility, Benefits, and Corporate Payments. Its Mobility segment provides payment processing, transaction processing, and information management services specifically designed for the needs of fleets of all sizes from small businesses to federal and state government fleets and over-the-road carriers. Its Benefits segment provides a Software as a service (SaaS) platform for consumer directed healthcare benefits and a full-service benefit enrollment solution, bringing together benefits administration, certain compliance services and consumer-directed and benefits accounts. Its Corporate Payments segment focuses on the complex payment environment of global B2B payments, enabling customers to utilize its payments solutions to integrate into their own workflows and manage their accounts payable automation and spend management functions.

WEX stock is predicted to reach $180-$200 by 2030, driven by its buyback plan and 5%-10% organic revenue growth projections. However, mixed institutional sentiment and insider selling may limit upside.

WEX has a total of 7200 employees.