Credit Suisse Group AG (CS) Stock: The Numbers Look Good?

Analysts at Morgan Stanley cut their rating on shares of Credit Suisse Group AG (NYSE:CS) from Overweight to Equal-Weight in their opinion released on November 27. RBC Capital Mkts analysts have downgraded their rating of CS stock from Outperform to Sector Perform in a separate flash note to investors on November 23. Analysts at Keefe Bruyette downgraded the stock to a Mkt Perform call from its previous Outperform stance, in a research note that dated back to November 21.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Credit Suisse Group AG (NYSE:CS)’s prospects.

Credit Suisse Group AG (CS) is expected to jump by 73.13 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $21.93-month high price target. This represents a whopping 100.46 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $15.5, which represents a return potential of 41.68 percent when compared to the closing price of the stock of $10.94 on Monday, December 17. The lowest price target for the stock is $12.1 — slightly more than 10.6 percent from CS’s current share price.

The shares are currently floating around the first support level of $10.84. Below this, the next support is placed in the zone of $10.74. Till the time, the CS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 31.68 on daily chart, which may remain a cause for comfort. If the price breaks below $10.74 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $11.11 mark may result into a pull-back move towards $11.29 level.

CS shares dropped -0.16 points or -1.44 percent on Monday to $10.94 with a heavy trade volume of 6.899 million shares. After opening the session at $11.06, the shares went as high as $11.185 and as low as $10.91, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $28.7 billion and now has 2.62 billion shares outstanding. Credit Suisse Group AG (CS) stock has lost -11.92 percent of market value in 21 trading days.

CS stock has a trailing 3-year beta of 1.34, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.74 a share in the trailing twelve months. The stock’s value has fallen -37.73 percent year to date (YTD) against a decline of -36.56 percent in 12 month’s time. The company’s shares still trade -44.37 percent away from its 1-year high of $19.67 and 0.83 percent up from 52-week low of $10.85. The average consensus rating on the company is 1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Credit Suisse Group AG (CS) are trading at a P/E ratio of 16.16 times earnings reported for the past 12 months. The industry CS operates in has an average P/E of 18.6. Its P/E ratio went as low as 23.97X and as high as 31.87 over the 5-year span. Further, it is sporting a 1.56 on the Price-to-Sales ratio. Compare this with the industry average P/S of 7.82. 0 percent is the gross profit margin for Credit Suisse Group AG and operating margin sits at 32.5 percent. Along with this, the net profit margin is -2 percent.