Goldman Sachs BDC, Inc. (NYSE:GSBD) Receives Average Rating of "Reduce" from Analysts

Key Points

• Analyst sentiment: Six analysts give Goldman Sachs BDC an average rating of "Reduce" (1 sell, 5 hold) with a 12‑month consensus price target of $9.50.
• Dividend risks: The BDC pays a $0.32 quarterly dividend (annualized $1.28) for a 13.5% yield, but its dividend payout ratio is 123.08%, signaling the payout may be unsustainably high.
• Results and insider signal: Latest quarter showed a slight EPS beat ($0.37 vs. $0.36) but a large revenue shortfall ($38.79M vs. $87.18M), while a director bought 50,000 shares at about $9.02.

Shares of Goldman Sachs BDC, Inc. (NYSE:GSBD - Get Free Report) have received an average recommendation of "Reduce" from the six ratings firms that are currently covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation and five have issued a hold recommendation on the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $9.50.

A number of research analysts have commented on GSBD shares. Wells Fargo & Company decreased their price target on Goldman Sachs BDC from $9.00 to $8.00 and set an "underweight" rating on the stock in a research note on Monday, March 2nd. Truist Financial decreased their price target on Goldman Sachs BDC from $11.00 to $10.00 and set a "hold" rating on the stock in a research note on Wednesday, March 4th. Wall Street Zen upgraded Goldman Sachs BDC from a "sell" rating to a "hold" rating in a research note on Sunday, March 15th. Finally, Weiss Ratings upgraded Goldman Sachs BDC from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, March 5th.

Goldman Sachs BDC Stock Down 1.3%

NYSE:GSBD opened at $9.50 on Friday. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 1.32. The stock's fifty day moving average is $9.23 and its two-hundred day moving average is $9.50. Goldman Sachs BDC has a 52 week low of $8.66 and a 52 week high of $12.03. The stock has a market capitalization of $1.07 billion, a price-to-earnings ratio of 9.13 and a beta of 0.57.

Goldman Sachs BDC (NYSE:GSBD - Get Free Report) last released its quarterly earnings results on Friday, February 27th. The financial services provider reported $0.37 EPS for the quarter, topping analysts' consensus estimates of $0.36 by $0.01. Goldman Sachs BDC had a return on equity of 12.23% and a net margin of 32.62%.The company had revenue of $38.79 million for the quarter, compared to analysts' expectations of $87.18 million. Research analysts anticipate that Goldman Sachs BDC will post 1.27 EPS for the current year.

Goldman Sachs BDC Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 28th. Stockholders of record on Tuesday, March 31st will be paid a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 13.5%. The ex-dividend date is Tuesday, March 31st. Goldman Sachs BDC's dividend payout ratio (DPR) is presently 123.08%.

Insider Activity

In related news, Director Carlos E. Evans acquired 50,000 shares of Goldman Sachs BDC stock in a transaction dated Thursday, April 2nd. The shares were acquired at an average cost of $9.02 per share, for a total transaction of $451,000.00. Following the completion of the purchase, the director owned 64,446 shares in the company, valued at approximately $581,302.92. The trade was a 346.12% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.13% of the company's stock.

Institutional Trading of Goldman Sachs BDC

Several hedge funds have recently modified their holdings of the stock. Oppenheimer & Co. Inc. raised its stake in shares of Goldman Sachs BDC by 4.0% in the third quarter. Oppenheimer & Co. Inc. now owns 27,847 shares of the financial services provider's stock valued at $283,000 after acquiring an additional 1,082 shares in the last quarter. IHT Wealth Management LLC raised its stake in shares of Goldman Sachs BDC by 5.7% in the second quarter. IHT Wealth Management LLC now owns 21,647 shares of the financial services provider's stock valued at $244,000 after acquiring an additional 1,173 shares in the last quarter. Ameriprise Financial Inc. raised its stake in shares of Goldman Sachs BDC by 1.4% in the third quarter. Ameriprise Financial Inc. now owns 100,190 shares of the financial services provider's stock valued at $1,019,000 after acquiring an additional 1,397 shares in the last quarter. Wellington Shields & Co. LLC raised its stake in shares of Goldman Sachs BDC by 7.1% in the third quarter. Wellington Shields & Co. LLC now owns 21,650 shares of the financial services provider's stock valued at $220,000 after acquiring an additional 1,430 shares in the last quarter. Finally, Founders Financial Alliance LLC raised its stake in shares of Goldman Sachs BDC by 3.2% in the fourth quarter. Founders Financial Alliance LLC now owns 46,643 shares of the financial services provider's stock valued at $433,000 after acquiring an additional 1,444 shares in the last quarter. 28.72% of the stock is currently owned by institutional investors and hedge funds.

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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