Ares Management LLC Acquires New Shares in Goldman Sachs BDC, Inc. $GSBD

Key Points

• Ares Management LLC has invested approximately $5.37 million in Goldman Sachs BDC, purchasing 461,984 shares, making it the company's 25th largest holding.
• Goldman Sachs BDC recently reported earnings of $0.38 per share, missing analyst expectations by $0.02, and its revenues for the quarter also fell short of projections.
• The company has announced a dividend cut with a quarterly payment of $0.03 per share, leading to a dividend yield of only 1.0% and a high payout ratio of 101.59%.

Ares Management LLC acquired a new stake in Goldman Sachs BDC, Inc. (NYSE:GSBD - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 461,984 shares of the financial services provider's stock, valued at approximately $5,373,000. Goldman Sachs BDC makes up approximately 0.3% of Ares Management LLC's investment portfolio, making the stock its 25th largest holding. Ares Management LLC owned approximately 0.39% of Goldman Sachs BDC as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. Stiles Financial Services Inc lifted its stake in shares of Goldman Sachs BDC by 165.4% in the 1st quarter. Stiles Financial Services Inc now owns 84,083 shares of the financial services provider's stock valued at $978,000 after purchasing an additional 52,406 shares in the last quarter. Envestnet Asset Management Inc. lifted its stake in shares of Goldman Sachs BDC by 24.6% in the 1st quarter. Envestnet Asset Management Inc. now owns 125,142 shares of the financial services provider's stock valued at $1,455,000 after purchasing an additional 24,687 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its stake in shares of Goldman Sachs BDC by 7.8% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 418,070 shares of the financial services provider's stock valued at $4,862,000 after purchasing an additional 30,172 shares in the last quarter. Ameriprise Financial Inc. lifted its stake in shares of Goldman Sachs BDC by 25.6% in the 4th quarter. Ameriprise Financial Inc. now owns 125,016 shares of the financial services provider's stock valued at $1,477,000 after purchasing an additional 25,491 shares in the last quarter. Finally, BNP Paribas Financial Markets lifted its stake in shares of Goldman Sachs BDC by 198.6% in the 4th quarter. BNP Paribas Financial Markets now owns 105,442 shares of the financial services provider's stock valued at $1,276,000 after purchasing an additional 70,131 shares in the last quarter. 28.72% of the stock is owned by institutional investors and hedge funds.

Goldman Sachs BDC Stock Up 1.2%

GSBD stock traded up $0.14 during midday trading on Thursday, hitting $11.49. 661,911 shares of the company's stock were exchanged, compared to its average volume of 567,082. The company has a current ratio of 1.50, a quick ratio of 1.50 and a debt-to-equity ratio of 1.19. Goldman Sachs BDC, Inc. has a 12-month low of $9.51 and a 12-month high of $14.54. The firm has a 50 day moving average price of $11.47 and a 200-day moving average price of $11.47. The stock has a market capitalization of $1.31 billion, a price-to-earnings ratio of 9.12 and a beta of 0.75.

Goldman Sachs BDC (NYSE:GSBD - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The financial services provider reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($0.02). Goldman Sachs BDC had a return on equity of 13.95% and a net margin of 36.17%.The business had revenue of $90.97 million for the quarter, compared to analysts' expectations of $94.55 million. On average, analysts anticipate that Goldman Sachs BDC, Inc. will post 2.19 EPS for the current year.

Goldman Sachs BDC Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, August 29th will be issued a $0.03 dividend. This represents a $0.12 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Friday, August 29th. Goldman Sachs BDC's payout ratio is 101.59%.

Analyst Upgrades and Downgrades

Separately, Zacks Research lowered Goldman Sachs BDC from a "hold" rating to a "strong sell" rating in a research report on Friday, August 15th. Two research analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, the company has a consensus rating of "Sell" and a consensus price target of $10.00.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc is a business development company specializing in middle market and mezzanine investment in private companies. It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities.