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Nov 08, 2018
UBS Facing New Legal Trouble

UBS Facing New Legal Trouble

UBS, Switzerland's largest bank, is preparing for a legal battle with the U.S. Department of Justice. The DOJ is bringing civil charges against the bank for its sale of mortgage-backed securities just prior to the 2008 financial meltdown.

The DOJ has settled similar claims with Citigroup Inc., Deutsche Bank, JPMorgan Chase & Co., Credit Suisse Group, Morgan Stanley, Goldman Sachs, Bank of America Corp and Barclays Plc. Barclays reached a $2 billion settlement in March.

Separately, the government in France is asking a Paris court to fine UBS 1.6 billion euros or $1.8 billion for allegedly helping clients commit tax fraud. UBS is denying the charge that has stemmed from a six year investigation.

Related Ticker: UBS

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Financial analyst and market blogger with expertise in equity research, fundamental analysis, and macroeconomic trends. I regularly publish coverage on individual stocks, ETFs, and sector developments — combining rigorous financial analysis with clear, engaging writing for a broad investment audience.


UBS saw its Stochastic Oscillator leaves the overbought zone

The Stochastic Oscillator for UBS moved out of overbought territory on September 09, 2026. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 57 similar instances where the indicator exited the overbought zone. In 35 of the 57 cases the stock moved lower. This puts the odds of a downward move at 61%.

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The 10-day RSI Indicator for UBS moved out of overbought territory on September 01, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 48 similar instances where the indicator moved out of overbought territory. In 24 of the 48 cases, the stock moved lower in the following days. This puts the odds of a move lower at 50%.

The Moving Average Convergence Divergence Histogram (MACD) for UBS turned negative on September 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In 24 of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at 56%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where UBS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 60%.

UBS broke above its upper Bollinger Band on August 28, 2026. 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.

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on September 11, 2026. You may want to consider a long position or call options on UBS as a result. In 48 of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 62%.

Following a +2.84% 3-day Advance, the price is estimated to grow further. Considering data from situations where UBS advanced for three days, in 234 of 348 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.

The Aroon Indicator entered an Uptrend today. In 197 of 342 cases where UBS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 58%.

Fundamental Analysis (Ratings)

The Tickeron SMR rating for this company is 5 (best 1 - 100 worst), indicating 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 Profit vs. Risk Rating rating for this company is 8 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 19, placing this stock better than average.

The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. UBS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is 59 (best 1 - 100 worst), pointing to average 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 67 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (1.874) is normal, around the industry mean (1.928). UBS has a moderately high P/E Ratio (18.565) as compared to the industry average of (15.436). Projected Growth (PEG Ratio) (0.747) is also within normal values, averaging (1.358). Dividend Yield (0.020) settles around the average of (0.025) among similar stocks. P/S Ratio (3.473) is also within normal values, averaging (3.980).

Notable companies

The most notable companies in this group are JPMorgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC), HSBC Holdings PLC (NYSE:HSBC), Wells Fargo & Co (NYSE:WFC), Citigroup (NYSE:C), Barclays PLC (NYSE:BCS).

Industry description

Major banks are among the biggest companies in the world, often times with global reach and market capitalizations in the multi-billions. Large banks often have multiple arms spanning different disciplines, from deposits, to investment banking, to wealth management and insurance. The biggest banks often have key competitive advantages over smaller players in the industry in terms of brand recognition, cost of capital, and efficiency. Think J.P. Morgan, Bank of America, Wells Fargo, and Citigroup.

Market Cap

The average market capitalization across the Major Banks Industry is 218.4B. The market cap for tickers in the group ranges from 1.04M to 946.93B. JPM holds the highest valuation in this group at 946.93B. The lowest valued company is BACRP at 1.04M.

High and low price notable news

The average weekly price growth across all stocks in the Major Banks Industry was -2%. For the same Industry, the average monthly price growth was -2%, and the average quarterly price growth was 32%. C experienced the highest price growth at 1%, while FRBT experienced the biggest fall at -4%.

Volume

The average weekly volume growth across all stocks in the Major Banks Industry was 9%. For the same stocks of the Industry, the average monthly volume growth was -1% and the average quarterly volume growth was -39%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 69
P/E Growth Rating: 29
Price Growth Rating: 41
SMR Rating: 4
Profit Risk Rating: 19
Seasonality Score: -34 (-100 ... +100)
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General Information

a major bank

Industry MajorBanks

Profile
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Industry
Major Banks
Address
Bahnhofstrasse 45
Phone
+41 442341111
Employees
105236
Web
https://www.ubs.com
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