Analysts were already hesitant on Credit Suisse stock heading into today
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.