The Goldman Sachs Group (NYSE:GS) Stock Gets Downgrade from Wall Street Zen

Key Points

• Wall Street Zen downgraded Goldman Sachs from “buy” to “hold.” Analysts overall also have a consensus “hold” rating, with an average price target of $1,052.04.
• Goldman reported quarterly earnings of $17.01 per share, beating the $12.86 consensus estimate, while revenue of $18.68 billion topped forecasts and rose 23% year over year.
• Insiders sold 12,500 shares worth about $11.4 million over the past three months; CEO David Solomon accounted for 12,000 of those shares.

The Goldman Sachs Group (NYSE:GS - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other research analysts also recently commented on GS. Citigroup reaffirmed a "market perform" rating on shares of The Goldman Sachs Group in a report on Wednesday, October 14th. HSBC lifted their price objective on The Goldman Sachs Group from $995.00 to $1,007.00 and gave the stock a "hold" rating in a report on Monday, September 28th. BMO Capital Markets reduced their target price on shares of The Goldman Sachs Group from $970.00 to $950.00 and set a "market perform" rating for the company in a research note on Monday, October 19th. Jefferies Financial Group set a $1,299.00 target price on The Goldman Sachs Group in a report on Wednesday, July 15th. Finally, Wells Fargo & Company decreased their target price on The Goldman Sachs Group from $1,325.00 to $1,175.00 and set an "overweight" rating for the company in a research report on Friday, September 25th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $1,052.04.

The Goldman Sachs Group Stock Performance

NYSE:GS opened at $865.88 on Friday. The firm has a market cap of $252.12 billion, a price-to-earnings ratio of 12.92, a PEG ratio of 0.85 and a beta of 1.29. The company has a debt-to-equity ratio of 2.82, a quick ratio of 0.63 and a current ratio of 1.10. The Goldman Sachs Group has a 52-week low of $754.00 and a 52-week high of $1,153.99. The business's fifty day moving average is $932.40 and its 200 day moving average is $956.58.

The Goldman Sachs Group (NYSE:GS - Get Free Report) last released its earnings results on Tuesday, October 13th. The investment management company reported $17.01 earnings per share for the quarter, topping the consensus estimate of $12.86 by $4.15. The Goldman Sachs Group had a net margin of 15.77% and a return on equity of 19.55%. The company had revenue of $18.68 billion for the quarter, compared to the consensus estimate of $16.83 billion. During the same quarter in the previous year, the firm earned $12.25 EPS. The Goldman Sachs Group's revenue was up 23.0% compared to the same quarter last year. Research analysts predict that The Goldman Sachs Group will post 71.49 EPS for the current year.

Insider Activity

In other news, CEO David M. Solomon sold 12,000 shares of the firm's stock in a transaction dated Tuesday, October 27th. The shares were sold at an average price of $910.72, for a total value of $10,928,640.00. Following the transaction, the chief executive officer directly owned 159,180 shares in the company, valued at approximately $144,968,409.60. This trade represents a 7.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Ericka T. Leslie sold 250 shares of the company's stock in a transaction on Thursday, October 22nd. The shares were sold at an average price of $890.25, for a total value of $222,562.50. Following the completion of the transaction, the insider owned 10,710 shares of the company's stock, valued at $9,534,577.50. The trade was a 2.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 12,500 shares of company stock worth $11,380,508 over the last three months. Insiders own 0.55% of the company's stock.

Hedge Funds Weigh In On The Goldman Sachs Group

Several institutional investors and hedge funds have recently bought and sold shares of GS. Shah Wealth Advisors LLC purchased a new position in The Goldman Sachs Group during the 3rd quarter valued at about $205,000. Wellington Grp LLC increased its stake in shares of The Goldman Sachs Group by 23.7% in the third quarter. Wellington Grp LLC now owns 2,388 shares of the investment management company's stock valued at $2,150,000 after buying an additional 458 shares during the period. Addison Advisors LLC raised its holdings in shares of The Goldman Sachs Group by 6.7% in the 3rd quarter. Addison Advisors LLC now owns 222 shares of the investment management company's stock worth $200,000 after purchasing an additional 14 shares during the period. Vista Capital Partners Inc. purchased a new stake in shares of The Goldman Sachs Group in the 3rd quarter worth about $358,000. Finally, BankPlus Trust Department raised its position in shares of The Goldman Sachs Group by 4.1% during the 3rd quarter. BankPlus Trust Department now owns 2,794 shares of the investment management company's stock valued at $2,516,000 after purchasing an additional 111 shares during the period. 71.21% of the stock is currently owned by hedge funds and other institutional investors.

The Goldman Sachs Group News Roundup

Here are the key news stories impacting The Goldman Sachs Group this week:

• Positive Sentiment: Bank of America Securities maintained its Buy rating and $1,050 price target, citing stronger client relationships, growth investments and resilient fee income. Goldman Sachs Earns Buy Rating
• Positive Sentiment: ETFs were reported to have bought a net $108.5 million of GS shares on Nov. 4, indicating institutional fund demand, though flows can fluctuate. ETFs Bought Goldman Shares
• Neutral Sentiment: The Supreme Court agreed to consider Goldman’s bid over whether bankruptcy courts can override arbitration agreements. The decision could affect the enforceability of arbitration agreements, but the outcome and financial implications are not yet known. Supreme Court to Hear Goldman Sachs’ Bankruptcy Arbitration Bid
• Negative Sentiment: Goldman’s trading desk reportedly saw buyers disappear during a sharp technology-led market selloff. That broad risk-off backdrop may weigh on the shares regardless of company-specific fundamentals. Goldman Sachs’ Trading Desk Sees Buyers Disappear During Selloff

About The Goldman Sachs Group

The Goldman Sachs Group, Inc is a global financial services firm founded in 1869 and headquartered in New York City. It serves corporations, financial institutions, governments and individuals across major financial markets worldwide.

The company's businesses include investment banking, global markets, and asset and wealth management. Its services include advising on mergers and acquisitions and other strategic transactions, helping clients raise capital, facilitating trading and risk management, and managing investments and wealth for institutions and individuals.

Goldman Sachs also provides consumer financial products and digital financial services.

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