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Can Goldman Sachs Stock Turn its Luck Around After Earnings?

The stock suffered a 7% drop after its last report

Digital Content Manager
Apr 13, 2022 at 1:29 PM
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Goldman Sachs Group Inc (NYSE:GS) will be one of the big bank names to kick off another earnings season this week, as it heads into the earnings confessional before the open tomorrow, April 14. The equity was last seen down 0.1% at $319.39, likely feeling some heat from sector peer JPMorgan Chase's (JPM) lackluster report. Below, we'll dig into the blue-chip bank stock's technical performance of late, and what investors might be able to expect after tomorrow's quarterly release. 

It's been a disappointing six months for Goldman Sachs stock, which has shed over 17% in that time period, especially after the stock peaked in early November before losing steam near the $420 level. The 40-day moving average has kept a tight lid on shares since then, just recently pushing GS back below its year-to-date breakeven level. 

gs april 13

The stock has a history of muted, yet positive post-earnings reactions, settling higher the day after five of its last eight earnings reports, and averaging a swing of 2.3%, regardless of direction. Goldman Sachs stock did suffer a 7% drop after its last report, though this time around options traders are pricing in a more muted 3.6% swing. 

Speaking of options players, Goldman Sachs' have been quite bearish ahead of the event. The security's Schaeffer's put/call open interest ratio (SOIR) of 1.33 sits higher than 73% of readings from the past year, indicating a healthy put-bias among short-term options traders. 

Analysts have taken a slightly more optimistic stance. Of the 13 in coverage, eight say "strong buy," compared to five "hold" ratings, and not a single "sell" to be seen. What's more, the 12-month consensus price target of $427.18 is a 33.8% premium to current levels. 

 

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