Goldman Sachs Group shares rose in pre-market trading, amid media reports that the banking behemoth is set to begin job cuts later this week.
According to the reports, Goldman is likely to slash around 3,200 roles, largely in the trading and banking divisions. The decision reportedly came after the company’s year-end review led by CEO David Solomon.
In late December, Solomon mentioned in a company-wide memo that various factors affecting the business landscape, including monetary tightening that are slowing down economic activity are impacting the bank's prospects. He cautioned that a headcount reduction will occur in the first half of January.
This will be one of Goldman’s largest round of layoffs, with the last major one having taken place in 2008 after the Lehman Brothers collapse. The number of employees in the company was more than 49,000, as of 30 September 2022. It had reportedly held off annual firing of underperformers during the pandemic.
Media reports mentioned that Goldman is also “poised to unveil financials tied to a new unit that houses its credit card and installment-lending business, which will record more than $2 billion in pretax losses”.
GS broke above its upper Bollinger Band on May 26, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 35 similar instances where the stock broke above the upper band. In of the 35 cases the stock fell afterwards. This puts the odds of success at .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
GS moved below its 50-day moving average on May 31, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for GS crossed bearishly below the 50-day moving average on May 11, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved above the 0 level on May 25, 2023. You may want to consider a long position or call options on GS as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for GS just turned positive on May 26, 2023. Looking at past instances where GS's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GS advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 234 cases where GS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.008) is normal, around the industry mean (3.587). P/E Ratio (11.534) is within average values for comparable stocks, (36.378). Projected Growth (PEG Ratio) (2.046) is also within normal values, averaging (2.330). Dividend Yield (0.029) settles around the average of (0.038) among similar stocks. P/S Ratio (2.478) is also within normal values, averaging (104.363).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. GS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of investment banking, securities and asset management services
A.I.dvisor indicates that over the last year, GS has been closely correlated with MS. These tickers have moved in lockstep 77% of the time. This A.I.-generated data suggests there is a high statistical probability that if GS jumps, then MS could also see price increases.