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Bank Stock Brushes Off Bear Note Before Earnings

The stock earlier dropped to its lowest level since January 2021

Deputy Editor
Oct 13, 2022 at 1:54 PM
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PNC Financial Services Group Inc (NYSE:PNC) is one of the many bank names that will close out the week with an earnings report. The company will announce third-quarter results before the open tomorrow, Oct. 14, with analysts anticipating profits of $3.69 per share. PNC is moving higher ahead of the event, last seen up 5.3% to trade at $153.92, despite a pre-earnings bear note from BofA Global Research, which slashed its price target to $157 from $162. 

Earlier today, PNC dropped as low as $143.52 -- its lowest level since January 2021. Now fighting its way up the charts, the security carries a 24.1% year-over-year deficit. The 140-day moving average, which rejected the shares' mid-August rally, has lingered overhead since February.

PNC Oct13

As far as post-earnings moves are concerned, over the past two years PNC has finished only two of eight next-day sessions higher, including a 1.6% pop in July. The options pits are pricing in a 4.2% swing this time around, regardless of direction, which is higher than the 2% move the stock has averaged.

Options traders are rushing in ahead of the event, with 2,502 calls across the tape, which is double the volume that is typically seen at this point. Most popular is the 10/14 157.50-strike call, with contracts expiring at the close tomorrow. 

Analysts lean bearish on PNC Financial stock. Of the 14 firms in coverage, 10 carry a "hold" or worse rating.

 

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