Goldman Sachs BDC, Inc. (NYSE:GSBD) Given Average Recommendation of "Reduce" by Brokerages

Key Points

• Analysts hold a cautious view of GSBD: Seven analysts give the stock an average “Reduce” rating, including three sells and four holds, with an average 12-month price target of $8.75 versus the reported $10.02 share price.
• Goldman Sachs BDC exceeded quarterly EPS expectations, reporting $0.37 versus the $0.31 consensus, although revenue of $35.08 million was below the $78.89 million estimate.
• The company declared a quarterly dividend of $0.32 per share, equal to $1.28 annually and a stated 12.8% yield; however, its payout ratio is elevated at 246.15%.

Goldman Sachs BDC, Inc. (NYSE:GSBD - Get Free Report) has been given an average rating of "Reduce" by the seven analysts that are covering the company, Marketbeat.com reports. Three equities research analysts have rated the stock with a sell recommendation and four have given a hold recommendation to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $8.75.

GSBD has been the topic of several research reports. Zacks Research upgraded shares of Goldman Sachs BDC from a "strong sell" rating to a "hold" rating in a report on Tuesday, July 28th. Wall Street Zen upgraded shares of Goldman Sachs BDC from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Truist Financial increased their price target on Goldman Sachs BDC from $9.00 to $10.00 and gave the company a "hold" rating in a report on Monday, August 10th. The Goldman Sachs Group downgraded Goldman Sachs BDC from a "neutral" rating to a "reduce" rating and set a $8.50 price target on the stock. in a research note on Thursday, July 9th. Finally, Bank of America reaffirmed an "underperform" rating and issued a $8.50 price objective (down from $9.00) on shares of Goldman Sachs BDC in a report on Thursday, July 9th.

Goldman Sachs BDC Price Performance

Shares of NYSE:GSBD opened at $10.02 on Thursday. The company has a debt-to-equity ratio of 1.36, a quick ratio of 0.69 and a current ratio of 0.69. The firm has a market cap of $1.13 billion, a price-to-earnings ratio of 19.27 and a beta of 0.57. The business has a 50-day simple moving average of $9.27 and a two-hundred day simple moving average of $9.24. Goldman Sachs BDC has a fifty-two week low of $8.35 and a fifty-two week high of $11.53.

Goldman Sachs BDC (NYSE:GSBD - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The financial services provider reported $0.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.31 by $0.06. Goldman Sachs BDC had a net margin of 17.19% and a return on equity of 11.04%. The firm had revenue of $35.08 million for the quarter, compared to the consensus estimate of $78.89 million. On average, analysts expect that Goldman Sachs BDC will post 1.29 earnings per share for the current year.

Goldman Sachs BDC Dividend Announcement

The company also recently declared 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. This represents a $1.28 dividend on an annualized basis and a dividend yield of 12.8%. The ex-dividend date is Wednesday, September 30th. Goldman Sachs BDC's payout ratio is currently 246.15%.

Hedge Funds Weigh In On Goldman Sachs BDC

Several institutional investors have recently made changes to their positions in GSBD. Quantbot Technologies LP bought a new stake in Goldman Sachs BDC during the second quarter valued at approximately $62,000. Kestra Advisory Services LLC purchased a new position in Goldman Sachs BDC during the fourth quarter valued at approximately $57,000. Advisory Services Network LLC bought a new position in shares of Goldman Sachs BDC in the third quarter worth approximately $68,000. SHP Wealth Management bought a new position in shares of Goldman Sachs BDC in the fourth quarter worth approximately $63,000. Finally, Farther Finance Advisors LLC purchased a new stake in shares of Goldman Sachs BDC in the fourth quarter worth $77,000. Institutional investors own 28.72% of the company's stock.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc NYSE: GSBD is an externally managed, closed-end, non-diversified management investment company organized as a business development company (BDC) under the U.S. Investment Company Act of 1940. The company's primary objective is to generate current income and capital appreciation through debt and equity investments in U.S. middle-market companies. It principally invests in senior secured loans, mezzanine debt, preferred equity and, to a lesser extent, common equity, focusing on sponsor-backed transactions and special-situation financings.

The fund is advised by affiliates of Goldman Sachs Asset Management's Private Credit Group, leveraging the firm's global research capabilities and risk management infrastructure.

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