The financial services name's credit card loan loss rate is the worst among U.S. lenders
Goldman Sachs Group Inc (NYSE:GS) is brushing off a steep price-target cut from Deutsche Bank to $370 from $430, last seen up 0.9% to trade at $343.44. The financial services concern is in focus after reports its credit card loan loss rate is the worst among U.S. issuers, and well above that of subprime lenders. Over a quarter of the company's credit card customers have a credit score below 660, leaving it exposed to substantial losses in the event of a recession.
The equity is extending a bounce off a pullback to the $325 region, and is now eyeing a fourth-straight daily win. The 50-day moving average is guiding the shares higher as well, after moving in as support in mid-July. Year-over-year, though, Goldman Sachs stock has shed 15.2%.
The options pits remain firmly bearish, per the security's 10-day put/call volume ratio of 1.27 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 94% of readings from the past year. In other words, traders have been picking up puts at a much faster-than-usual pace lately.