Deutsche Bank Hits New Lows Amid NYT Accusations, Analyst Downgrade

UBS downgraded the stock to "sell" from "neutral"

by Lillian Currens

Published on May 20, 2019 at 9:56 AM

The German financial concern Deutsche Bank AG (NYSE:DB) is pacing for its fourth day in the red today after a New York Times report accusing the bank of failing to report suspicious transactions between U.S. President Donald Trump and his son-in-law Jared Kushner. Mr. Trump and Deutsche Bank have both rejected these accusations. The shares are down 2.2% to trade at a new all-time low of $7.41. 

To rub even more salt in the proverbial wound, UBS just downgraded the bank stock to a "sell" rating from "neutral," and cut its price target to $6.36 from $8.71. This bearish sentiment is more of the same for DB, which had mostly "hold" or worse ratings prior to today. Plus the consensus 12-month target price of $7.24 is right in line with current levels. DB has been in a downward spiral for months, losing almost 42% year-over-year.

Options traders have been upping the bearish ante, too. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) two puts have been bought for every call in the last two weeks. This ratio sits in the relatively high 84th percentile of its annual range, suggesting a much healthier appetite for puts over calls of late. 

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