Why Is Credit Suisse (CS) Stock Down 7% Today?

  • Credit Suisse (CS) stock is moving alongside acquisition news.
  • The company is acquiring Michael Klein’s investment banking business for $175 million.
  • This news comes as Credit Suisse experiences its worst loss since 2008.
A sign for Credit Suisse (CS) hangs in Zurich, Switzerland

Source: Pincasso / Shutterstock.com

Credit Suisse (NYSE:CS) stock is falling on Thursday after the company announced its intention to acquire Michael Klein’s investment banking business.

This will see the banking company purchase the investment banking arm of M. Klein & Company for $175 million. The move will see Credit Suisse revive the First Boston investing banking brand with Klein leading that business.

Credit Suisse expects to complete this acquisition by June. Also, it’s looking to double CS First Boston revenue to “as much as $3.5 billion.”

Problems for CS Stock

Credit Suisse’s plan to purchase Michael Klein’s business comes as it’s already suffering deep losses. The company reported its “worst annual loss since the 2008 global financial crisis” today. There are also concerns that things could get worse for the company.

Analyst Thomas Hallett took CS stock to task in a note to clients obtained by Reuters:

“With heavy losses to continue in 2023, we expect to see another wave of downgrades and see no reason to own the shares.”

One of the biggest problems facing CS stock is scandals. The company has been involved in several over the last few years that have left it crippled. That includes a $5.5 billion loss connected to its business with Archegos in 2021.

CS stock is down 7% as of Thursday morning.

Investors looking for all of the latest stock market news will want to keep reading!

InvestorPlace is home to all of the most recent stock news traders need to know about on Thursday! Among that is what has shares of Vintage Wine Estates (NASDAQ:VWE), Tivic Health Systems (NASDAQ:TIVC) and Cardiovascular Systems (NASDAQ:CSII) stock moving today. You can catch up on all of this at the links below!

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/02/why-is-credit-suisse-cs-stock-down-7-today/.

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