UBS Group (NYSE:UBS) Shares Decline After Earnings Report

On February 5th, 2025, UBS Group AG (NYSE:UBS) experienced a significant drop in its stock price as it opened lower following an earnings announcement that fell short of expectations. The stock closed the previous day at $34.94 but opened at $32.94, reflecting investor disappointment. As of the last trade, UBS shares were priced at $32.63, with a trading volume of 2,196,391 shares.

For the recent quarter, UBS reported earnings per share (EPS) of $0.23, which was below analysts’ anticipated EPS of $0.31 by $0.08. The bank reported a net margin of 5.13% and a return on equity of 4.69%. The company’s quarterly revenue was $11.06 billion, exceeding analyst estimates of $10.90 billion, representing a 1.9% increase compared to the same period last year. In the previous year, UBS posted a loss of ($0.09) per share.

Analysts Adjust Price Targets

In response to these results, various brokerages have reevaluated their outlooks on UBS Group. StockNews.com downgraded UBS from a “buy” rating to a “hold” rating on January 22nd. Conversely, Kepler Capital Markets raised its rating from “hold” to “buy” on January 10th. Additionally, BNP Paribas upgraded UBS from “neutral” to “outperform” on January 3rd. Currently, three research analysts rate the stock as a hold while four have given it a buy rating, leading to a consensus rating of “Moderate Buy” according to MarketBeat.

Institutional Investors’ Moves

Several institutional investors have been active in buying and selling UBS shares recently. AQR Capital Management LLC significantly increased its holdings by 226.8% in the second quarter, acquiring an additional 19,382 shares for a total of 27,928 shares valued at $825,000. Sanctuary Advisors LLC also entered the picture by purchasing a new stake in UBS worth $724,000 during the same quarter. Furthermore, Atomi Financial Group Inc. increased its position by 6.1%, ending up with 29,587 shares valued at $915,000 after adding 1,706 shares. Wedmont Private Capital and Bruce G. Allen Investments LLC also upped their stakes, showing growing interest from various investors.

Stock Performance Overview

UBS Group boasts a market capitalization of $103.99 billion, a price-to-earnings (PE) ratio of 27.03, and a beta of 1.16. The company's debt-to-equity ratio stands at 3.87, with a quick ratio and current ratio both at 1.05. The stock has been trading around a 50-day moving average of $32.42 and a 200-day moving average of $31.35, indicating its performance trends in the market.

About UBS Group

UBS Group AG is a global financial services company that offers a wide range of financial advice and solutions to private, institutional, and corporate clients. The company operates through five main divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. Services range from investment advice to estate and wealth planning, alongside various lending solutions.

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