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

Key Points

• Analysts are broadly cautious on GSBD: Seven firms rate the stock an average “Reduce,” with three sell ratings and four holds. The consensus 12-month price target is $8.50, below its reported opening price of $8.61.
• Recent financial results fell short of expectations: Goldman Sachs BDC reported quarterly EPS of $0.22 versus the $0.29 consensus estimate, while revenue came in at $10.35 million compared with expectations of $83.78 million.
• The company paid a quarterly dividend of $0.32, equal to an annualized $1.28 and a reported 14.9% yield; however, its dividend payout ratio was high at 196.92%.

Goldman Sachs BDC, Inc. (NYSE:GSBD - Get Free Report) has been given an average recommendation of "Reduce" by the seven ratings firms that are currently covering the stock, 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 1-year target price among brokerages that have issued a report on the stock in the last year is $8.50.

A number of research firms have commented on GSBD. Wall Street Zen downgraded shares of Goldman Sachs BDC from a "hold" rating to a "sell" rating in a report on Saturday, May 16th. Truist Financial lowered their target price on Goldman Sachs BDC from $10.00 to $9.00 and set a "hold" rating on the stock in a report on Tuesday, May 19th. The Goldman Sachs Group lowered Goldman Sachs BDC from a "neutral" rating to a "reduce" rating and set a $8.50 price target for the company. in a research report on Thursday, July 9th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Goldman Sachs BDC in a report on Tuesday, June 2nd. Finally, Bank of America reiterated an "underperform" rating and set a $8.50 price objective (down from $9.00) on shares of Goldman Sachs BDC in a research report on Thursday, July 9th.

Goldman Sachs BDC Price Performance

Goldman Sachs BDC stock opened at $8.61 on Friday. The company has a fifty day simple moving average of $9.05 and a 200-day simple moving average of $9.20. The firm has a market capitalization of $969.57 million, a price-to-earnings ratio of 13.25 and a beta of 0.56. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 1.39. Goldman Sachs BDC has a 52-week low of $8.35 and a 52-week high of $11.62.

Goldman Sachs BDC (NYSE:GSBD - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The financial services provider reported $0.22 earnings per share for the quarter, missing the consensus estimate of $0.29 by ($0.07). The business had revenue of $10.35 million during the quarter, compared to analysts' expectations of $83.78 million. Goldman Sachs BDC had a return on equity of 10.94% and a net margin of 21.32%. On average, equities analysts anticipate that Goldman Sachs BDC will post 1.15 EPS for the current fiscal year.

Goldman Sachs BDC Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 28th. Shareholders of record on Tuesday, June 30th were paid a $0.32 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 14.9%. Goldman Sachs BDC's dividend payout ratio (DPR) is 196.92%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of GSBD. Saxon Interests Inc. increased its position in Goldman Sachs BDC by 0.8% during the first quarter. Saxon Interests Inc. now owns 122,912 shares of the financial services provider's stock worth $1,091,000 after purchasing an additional 1,032 shares during the last quarter. IHT Wealth Management LLC raised its stake in Goldman Sachs BDC by 5.7% during the second quarter. IHT Wealth Management LLC now owns 21,647 shares of the financial services provider's stock worth $244,000 after purchasing an additional 1,173 shares during the period. Ameriprise Financial Inc. boosted its holdings in Goldman Sachs BDC by 1.4% in the 3rd quarter. Ameriprise Financial Inc. now owns 100,190 shares of the financial services provider's stock valued at $1,019,000 after purchasing an additional 1,397 shares during the last quarter. Founders Financial Alliance LLC boosted its holdings in Goldman Sachs BDC by 3.2% in the 4th quarter. Founders Financial Alliance LLC now owns 46,643 shares of the financial services provider's stock valued at $433,000 after purchasing an additional 1,444 shares during the last quarter. Finally, MML Investors Services LLC grew its stake in shares of Goldman Sachs BDC by 3.0% in the 2nd quarter. MML Investors Services LLC now owns 55,554 shares of the financial services provider's stock valued at $625,000 after buying an additional 1,599 shares during the period. Institutional investors and hedge funds 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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