Goldman Sachs BDC (NYSE:GSBD) Hits New 1-Year Low - Here's What Happened

Key Points

• Goldman Sachs BDC (NYSE:GSBD) hit a new 52‑week low of $8.80 (last traded $8.77) and faces analyst pressure — the consensus is a "Reduce" with an average price target of $9.50 after several firms trimmed targets (e.g., Wells Fargo to $8.00).
• The company slightly beat quarterly EPS ($0.37 vs. $0.36 expected) but missed revenue significantly ($38.8M vs. $87.2M expected), and it offers a high quarterly dividend of $0.32 (annualized yield 14.6%) with a payout ratio of 123%, which may raise sustainability concerns.

Goldman Sachs BDC, Inc. (NYSE:GSBD - Get Free Report) hit a new 52-week low during trading on Tuesday . The company traded as low as $8.80 and last traded at $8.77, with a volume of 9625 shares traded. The stock had previously closed at $9.04.

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. Wells Fargo & Company cut their price target on shares of Goldman Sachs BDC from $9.00 to $8.00 and set an "underweight" rating for the company in a report on Monday, March 2nd. Wall Street Zen raised shares of Goldman Sachs BDC from a "sell" rating to a "hold" rating in a research note on Sunday, March 15th. Weiss Ratings raised Goldman Sachs BDC from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, March 5th. Truist Financial dropped their price target on shares of Goldman Sachs BDC from $11.00 to $10.00 and set a "hold" rating for the company in a research note on Wednesday, March 4th. Finally, The Goldman Sachs Group initiated coverage on Goldman Sachs BDC in a research report on Monday, December 15th. They set a "neutral" rating and a $10.50 price objective for the company. Five analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $9.50.

Goldman Sachs BDC Stock Performance

The stock has a 50 day simple moving average of $9.25 and a two-hundred day simple moving average of $9.67. The company has a market capitalization of $985.55 million, a price-to-earnings ratio of 8.42 and a beta of 0.62. The company has a debt-to-equity ratio of 1.32, a current ratio of 1.01 and a quick ratio of 1.01.

Goldman Sachs BDC (NYSE:GSBD - Get Free Report) last released its quarterly earnings data on Friday, February 27th. The financial services provider reported $0.37 earnings per share for the quarter, topping analysts' consensus estimates of $0.36 by $0.01. Goldman Sachs BDC had a net margin of 32.62% and a return on equity of 12.23%. The company had revenue of $38.79 million for the quarter, compared to analysts' expectations of $87.18 million. As a group, analysts anticipate that Goldman Sachs BDC, Inc. will post 2.19 earnings per share for the current year.

Goldman Sachs BDC Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 28th. Shareholders of record on Tuesday, March 31st will be paid a $0.32 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $1.28 dividend on an annualized basis and a yield of 14.6%. Goldman Sachs BDC's payout ratio is currently 123.08%.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of GSBD. ORG Partners LLC acquired a new position in Goldman Sachs BDC in the 4th quarter valued at $33,000. CWM LLC raised its holdings in Goldman Sachs BDC by 187.8% during the third quarter. CWM LLC now owns 4,864 shares of the financial services provider's stock worth $49,000 after purchasing an additional 3,174 shares in the last quarter. State of Alaska Department of Revenue purchased a new stake in Goldman Sachs BDC in the 3rd quarter valued at approximately $51,000. Kestra Advisory Services LLC acquired a new position in Goldman Sachs BDC during the 4th quarter worth approximately $57,000. Finally, Quantbot Technologies LP purchased a new position in shares of Goldman Sachs BDC during the 2nd quarter worth approximately $62,000. Institutional investors and hedge funds own 28.72% of the company's stock.

Goldman Sachs BDC Company Profile

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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