Goldman Sachs BDC, Inc. (GSBD) - What Are Investment Firms Thinking About This Stock?

Key Points

• Analysts are broadly cautious on GSBD: The stock has a consensus “Reduce” rating from seven analysts, with three sells, three holds and one strong buy. The average 12-month price target is $8.75, below its reported $8.91 opening price.
• Quarterly results exceeded expectations: Goldman Sachs BDC reported earnings of $0.37 per share versus the $0.31 consensus estimate, while revenue of $83.72 million also topped forecasts.
• The company maintains a high dividend yield: GSBD declared a quarterly dividend of $0.32 per share, equivalent to $1.28 annually and a 14.4% yield, though its payout ratio is elevated at 246.15%.

Shares of Goldman Sachs BDC, Inc. (NYSE:GSBD - Get Free Report) have been assigned a consensus recommendation of "Reduce" from the seven analysts that are presently covering the stock, Marketbeat.com reports. Three investment analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $8.75.

A number of analysts have commented on GSBD shares. Wall Street Zen raised Goldman Sachs BDC from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Bank of America reaffirmed an "underperform" rating and set a $8.50 price target (down from $9.00) on shares of Goldman Sachs BDC in a report on Thursday, July 9th. The Goldman Sachs Group cut Goldman Sachs BDC from a "neutral" rating to a "reduce" rating and set a $8.50 price objective on the stock. in a research report on Thursday, July 9th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Goldman Sachs BDC in a report on Friday, August 28th. Finally, Truist Financial lifted their price objective on Goldman Sachs BDC from $9.00 to $10.00 and gave the stock a "hold" rating in a report on Monday, August 10th.

Goldman Sachs BDC Trading Up 3.2%

NYSE:GSBD opened at $8.91 on Friday. The company's 50 day moving average price is $9.59 and its 200-day moving average price is $9.31. Goldman Sachs BDC has a 52 week low of $8.35 and a 52 week high of $10.38. The company has a quick ratio of 0.69, a current ratio of 0.69 and a debt-to-equity ratio of 1.36. The stock has a market cap of $1.00 billion, a price-to-earnings ratio of 17.14 and a beta of 0.61.

Goldman Sachs BDC (NYSE:GSBD - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The financial services provider reported $0.37 earnings per share for the quarter, topping analysts' consensus estimates of $0.31 by $0.06. The company had revenue of $83.72 million during the quarter, compared to analyst estimates of $78.89 million. Goldman Sachs BDC had a net margin of 17.19% and a return on equity of 11.04%. On average, equities research analysts forecast that Goldman Sachs BDC will post 1.29 earnings per share for the current fiscal year.

Goldman Sachs BDC Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Wednesday, September 30th will be paid a dividend of $0.32 per share. The ex-dividend date is Wednesday, September 30th. This represents a $1.28 dividend on an annualized basis and a yield of 14.4%. Goldman Sachs BDC's payout ratio is currently 246.15%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of GSBD. Cidel Asset Management Inc. bought a new stake in shares of Goldman Sachs BDC during the 2nd quarter valued at about $571,000. Compass Financial Management LLC purchased a new stake in shares of Goldman Sachs BDC during the 2nd quarter valued at about $522,000. Arkadios Wealth Advisors lifted its stake in shares of Goldman Sachs BDC by 3.9% in the 1st quarter. Arkadios Wealth Advisors now owns 54,217 shares of the financial services provider's stock worth $481,000 after purchasing an additional 2,047 shares during the period. Southern Financial Group LLC lifted its stake in shares of Goldman Sachs BDC by 11.1% in the 1st quarter. Southern Financial Group LLC now owns 18,110 shares of the financial services provider's stock worth $161,000 after purchasing an additional 1,806 shares during the period. Finally, Entropy Technologies LP lifted its stake in shares of Goldman Sachs BDC by 49.8% in the 1st quarter. Entropy Technologies LP now owns 31,462 shares of the financial services provider's stock worth $279,000 after purchasing an additional 10,463 shares during the period. 28.72% of the stock is owned by hedge funds and other institutional investors.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc NYSE: GSBD is a business development company that provides financing to privately owned, primarily middle-market companies in the United States. The company is externally managed by Goldman Sachs Asset Management, part of Goldman Sachs Group, Inc

Goldman Sachs BDC invests mainly in senior secured loans, including first-lien and unitranche facilities, and may also invest in second-lien loans, subordinated debt and equity securities. Its portfolio companies operate across a range of industries, and its investment strategy is focused on generating current income while also seeking long-term capital appreciation.

The company was formed in 2012 and began investment operations in 2013.

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