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The Switzerland-based investment advice company Credit Suisse Group (CS:US or NYSE: CS) stock tumbled over 11 per cent on Monday, March 29, after reports of losses up from Archegos Capital Management liquidation.
The stock witnessed almost US$ 5 billion equity loss in a single trading session, as speculations on Archegos failing to meet collateral to secure equity swap swept the markets. If this report turns out to be true, the capital management firm’s lenders could end up losinh as much as US$ 6 billion.
Over 30 million Credit Suisse American Depositary Shares (ADRs) changed hands yesterday, which is almost ten times against its 50-day average volume of 3.48 million.
The stock was down 1.76 per cent in the premarket on Tuesday (5:31 AM EDT).
Let us have a look at the financial service stock’s price and financial performances:
Credit Suisse Group AG (CS:US or NYSE: CS)
The Swiss company operates wealth management businesses across the globe. It also manages commercial and retail banks.
Its current stock price is US$ 11.39, and the current market capitalization is US$ 27.88 billion. The stock has plummeted more than 21 per cent in the last one month.
It is currently 24 per cent down from its 52-week high of US$ 14.95 per share, recorded on February 25, 2021. However, it is up 55.39 per cent from its 52-week low of US$ 7.33 per piece, plunged on May 14, 2020.
It has returned 36.73 per cent in the last one year, outperforming the S&P 500 Capital Markets (Industry) that has declined 18.79 per cent in the same period.
Its return on equity is 6.47 per cent, and the debt-to-equity ratio is 4.33. Credit Suisse distributes an annual dividend of US$ 0.078 per share, with a dividend yield of 0.683 per cent.
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In the fourth quarter of 2020, it posted a pre-tax loss of 88 million Swiss Franc (CHF). Its top line was CHF 5.2 billion, which was impacted by a provision for credit losses, restructuring costs, and major litigation provisions.
The full-year 2020 pre-tax income was CHF 3.5 billion, a decrease of 27 per cent year-over-year (YoY), and diluted earnings per share stood at CHF 1.06.
Analysts will closely review the upcoming first-quarter results of 2021, which are due on April 22.
Given its current predicament, Credit Suisse stock downfall is likely to continue in near future.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
