Wells Fargo & Company Cuts The Goldman Sachs Group (NYSE:GS) Price Target to $1,175.00

Key Points

• Wells Fargo cut Goldman Sachs’ price target to $1,175 from $1,325 while maintaining an “overweight” rating, implying approximately 27.44% upside from the prior close.
• Analyst sentiment is mixed: Goldman has a consensus “hold” rating and average price target of $1,048.57, with 13 holds, nine buys, one strong buy, and one sell rating.
• Goldman reported strong quarterly results, with EPS of $20.98 versus the $14.47 estimate and revenue of $20.34 billion, up 39.4% year over year; institutional investors own 71.21% of the stock.

The Goldman Sachs Group (NYSE:GS - Get Free Report) had its target price reduced by Wells Fargo & Company from $1,325.00 to $1,175.00 in a research report issued on Friday, Benzinga reports. The brokerage presently has an "overweight" rating on the investment management company's stock. Wells Fargo & Company's price objective points to a potential upside of 27.44% from the company's previous close.

Several other equities analysts have also issued reports on GS. Wall Street Zen lowered The Goldman Sachs Group from a "buy" rating to a "hold" rating in a research note on Sunday, September 13th. Bank of America raised their price objective on shares of The Goldman Sachs Group from $1,150.00 to $1,300.00 and gave the stock a "buy" rating in a research report on Thursday, July 16th. HSBC upgraded shares of The Goldman Sachs Group from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 5th. Jefferies Financial Group set a $1,299.00 target price on shares of The Goldman Sachs Group in a research note on Wednesday, July 15th. Finally, Keefe, Bruyette & Woods raised their price target on shares of The Goldman Sachs Group from $1,050.00 to $1,130.00 and gave the stock a "market perform" rating in a report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $1,048.57.

The Goldman Sachs Group Price Performance

Shares of NYSE GS opened at $922.01 on Friday. The company has a market capitalization of $268.46 billion, a PE ratio of 14.23, a P/E/G ratio of 0.95 and a beta of 1.29. The company has a quick ratio of 0.63, a current ratio of 0.63 and a debt-to-equity ratio of 3.17. The Goldman Sachs Group has a twelve month low of $740.01 and a twelve month high of $1,153.99. The firm has a fifty day simple moving average of $1,022.69 and a 200 day simple moving average of $981.25.

The Goldman Sachs Group (NYSE:GS - Get Free Report) last issued its quarterly earnings results on Tuesday, July 14th. The investment management company reported $20.98 EPS for the quarter, beating analysts' consensus estimates of $14.47 by $6.51. The Goldman Sachs Group had a net margin of 15.53% and a return on equity of 19.16%. The business had revenue of $20.34 billion for the quarter, compared to analysts' expectations of $16.22 billion. During the same quarter in the prior year, the firm posted $10.91 earnings per share. The business's quarterly revenue was up 39.4% compared to the same quarter last year. On average, sell-side analysts forecast that The Goldman Sachs Group will post 69.64 EPS for the current year.

Hedge Funds Weigh In On The Goldman Sachs Group

A number of hedge funds have recently added to or reduced their stakes in the stock. Sky Investment Group LLC raised its stake in shares of The Goldman Sachs Group by 0.9% in the second quarter. Sky Investment Group LLC now owns 1,168 shares of the investment management company's stock valued at $1,181,000 after purchasing an additional 10 shares in the last quarter. Warren Street Wealth Advisors LLC grew its holdings in shares of The Goldman Sachs Group by 3.9% in the 2nd quarter. Warren Street Wealth Advisors LLC now owns 269 shares of the investment management company's stock worth $272,000 after purchasing an additional 10 shares during the last quarter. Welch & Forbes LLC grew its holdings in shares of The Goldman Sachs Group by 0.8% in the 4th quarter. Welch & Forbes LLC now owns 1,430 shares of the investment management company's stock worth $1,257,000 after purchasing an additional 11 shares during the last quarter. First Financial Group Corp increased its position in shares of The Goldman Sachs Group by 4.7% during the 1st quarter. First Financial Group Corp now owns 246 shares of the investment management company's stock worth $208,000 after purchasing an additional 11 shares in the last quarter. Finally, Meadow Creek Wealth Advisors LLC lifted its holdings in The Goldman Sachs Group by 1.7% during the 1st quarter. Meadow Creek Wealth Advisors LLC now owns 673 shares of the investment management company's stock valued at $569,000 after purchasing an additional 11 shares during the last quarter. Institutional investors and hedge funds own 71.21% of the company's stock.

Key Headlines Impacting The Goldman Sachs Group

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

• Positive Sentiment: Goldman Sachs reportedly raised $11.7 billion for private-equity strategies, including $9.6 billion for its flagship buyout fund and $1.6 billion for an Asia-focused vehicle. The fundraising supports the firm’s alternatives strategy and could generate additional management and performance fees. Goldman Sachs Raises $11.7 Billion for Private Equity
• Positive Sentiment: Goldman is reportedly considering the acquisition of Palmer Square, which could strengthen its credit and asset-management businesses while increasing recurring fee revenue. Goldman Eyes Palmer Square Buyout
• Positive Sentiment: The firm’s growth-equity arm invested $400 million in cybersecurity company Cyera, expanding Goldman’s exposure to technology and cybersecurity assets. The investment may offer longer-term upside, though it also commits capital to a high-growth private company. Cyera Raises $400 Million
• Neutral Sentiment: Jim Cramer continues to praise GS for what he views as an attractive valuation, while other coverage highlights the stock’s roughly 204% three-year gain and questions whether future returns can justify the higher share price. Goldman Sachs Stock Could Be Undervalued
• Negative Sentiment: Wells Fargo lowered its GS price target to $1,175 from $1,325 but retained an Overweight rating. The cut reduces near-term upside expectations even though the analyst remains bullish. Wells Fargo Adjusts Price Target
• Negative Sentiment: Citigroup previously reduced its target to $1,050 from $1,200 and maintained a Neutral rating. The back-to-back target reductions suggest analysts are reassessing valuation and the sustainability of Goldman’s strong rally. Citigroup Adjusts Price Target

About The Goldman Sachs Group

The Goldman Sachs Group, Inc NYSE: GS is a global financial services company that provides investment banking, securities, asset management and wealth management services to corporations, financial institutions, governments and individuals. The company is headquartered in New York City and serves clients across North America, Europe, Asia-Pacific and other international markets.

Through its Global Banking & Markets segment, Goldman Sachs advises clients on mergers and acquisitions, capital raising, restructuring and other strategic transactions.

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