Embattled Credit Suisse Issues Another Profit Warning

This marks the European lender's third-straight quarterly profit warning

Digital Content Manager
Jun 8, 2022 at 9:39 AM
facebook twitter linkedin

Credit Suisse Group AG (NYSE:CS) is the latest in a string of major companies to issue a profit warning. The European lender said it will most likely see a loss for its second quarter, thanks to the Russia-Ukraine conflict and monetary tightening. This marks Credit Suisse's third-straight quarterly profit warning, with the bank calling 2022 a "transition" year, amid it's recent c-suite shakeup and last year's string of costly scandals. 

The shares were last seen down 7.5% to trade at $6.42, set to extend their 28% year-to-date deficit. CS has managed to distance itself from its May 12 record low of $6.07, though the 50-day moving average swiftly rejected this rally. Now, CS is looking to close back below recent support at its 20-day moving average. 

Analysts are already hesitant on Credit Suisse stock. Of the five in coverage, three say "hold" and two say "sell" or worse. Plus, the 12-month consensus price target of $6.79 is a 2.2% discount to current Tuesday's close. 

Short-term options traders have also taken a bearish stance. The security's Schaeffer's put/call volume ratio (SOIR) of 1.09 sits higher than 77% of readings from the past year. In other words, these traders are incredibly put-biased right now. 


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners