Goldman Sachs Group Inc (GS)

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Goldman Sachs Stock Shifts Lower After Earnings
By: Schaeffer's Investment Research | January 19, 2021

• The stock reversed course after Goldman Sachs' CEO warned of some pandemic-related uncertainty ahead

• The firm posted a fourth-quarter earnings and revenue beat

The rumblings of another earnings season are upon us, and bank stocks, as usual, are kicking off the event. On the docket today, for instance, is financial name Goldman Sachs Group Inc (NYSE:GS), which just blew analysts' expectations out of the water with a fourth-quarter earnings beat of $12.08 per share. The company's revenue also topped estimates. Despite the earnings and revenue beat, GS is down 0.7% at $298.91 at last check, reversing course after the company's CEO warned that there is still significant uncertainty, thanks to the growing number of coronavirus cases worldwide.

While the security is falling further from its Jan. 14 record high of $309.41, longer-term, the shares have been in rally mode since familiar support at the $190 mark catapulted GS past its pre-pandemic levels. In the past nine months, GS is up roughly 64%, with guidance from its ascending 10-day moving average.

While the brokerage bunch hasn't chimed in on Goldman Sachs' earnings beat yet, most in coverage came into today optimistic. Of the 13 in coverage, nine call it a "strong buy," while the 12-month consensus price target of $307.81 is a 2.3% premium to Friday's close.

Option traders have shared this sunny sentiment, per Goldman Sachs' 10-day call/put volume ratio of 2.82 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 80% of readings from the past year. This means calls have been picked up at a much quicker-than-usual clip of late.

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