Goldman Sachs BDC (NYSE:GSBD) Hits New 52-Week Low - Here's Why

Key Points

• Goldman Sachs BDC's share price fell to a new 52-week low of $9.48, with recent trading volumes reaching 994,119 shares.
• The company has received a renewed “strong sell” rating from Zacks Research amidst a consensus rating of "Sell" and an average price target of $10.00.
• Goldman Sachs BDC recently cut its dividend to $0.03 per share, representing a yield of 1.3% and a payout ratio exceeding 100% at 101.59%.

Goldman Sachs BDC, Inc. (NYSE:GSBD - Get Free Report)'s share price reached a new 52-week low during trading on Thursday . The stock traded as low as $9.48 and last traded at $9.50, with a volume of 994119 shares changing hands. The stock had previously closed at $9.76.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Zacks Research cut Goldman Sachs BDC from a "hold" rating to a "strong sell" rating in a research note on Friday, August 15th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Goldman Sachs BDC in a research note on Wednesday. One equities research analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Sell" and an average price target of $10.00.

Goldman Sachs BDC Price Performance

The company has a 50 day moving average of $11.04 and a 200-day moving average of $11.16. The stock has a market capitalization of $1.09 billion, a P/E ratio of 7.57 and a beta of 0.73. The company has a quick ratio of 1.50, a current ratio of 1.50 and a debt-to-equity ratio of 1.19.

Goldman Sachs BDC (NYSE:GSBD - Get Free Report) last announced 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 firm had revenue of $90.97 million for the quarter, compared to the consensus estimate of $94.55 million. Sell-side analysts predict that Goldman Sachs BDC, Inc. will post 2.19 EPS for the current year.

Goldman Sachs BDC Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Friday, August 29th were paid a $0.03 dividend. This represents a $0.12 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date was Friday, August 29th. Goldman Sachs BDC's dividend payout ratio (DPR) is presently 101.59%.

Insider Transactions at Goldman Sachs BDC

In related news, CEO Vivek Bantwal bought 22,000 shares of the business's stock in a transaction on Friday, September 12th. The shares were bought at an average cost of $11.36 per share, for a total transaction of $249,920.00. Following the completion of the purchase, the chief executive officer owned 22,000 shares of the company's stock, valued at $249,920. This represents a ∞ increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.12% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. MTM Investment Management LLC acquired a new position in shares of Goldman Sachs BDC during the second quarter valued at $25,000. Farther Finance Advisors LLC acquired a new position in shares of Goldman Sachs BDC during the second quarter valued at $34,000. Creative Financial Designs Inc. ADV acquired a new position in shares of Goldman Sachs BDC during the first quarter valued at $46,000. Private Trust Co. NA increased its holdings in shares of Goldman Sachs BDC by 1,471.7% during the second quarter. Private Trust Co. NA now owns 5,045 shares of the financial services provider's stock valued at $57,000 after purchasing an additional 4,724 shares during the period. Finally, Quantbot Technologies LP acquired a new position in shares of Goldman Sachs BDC during the second quarter valued at $62,000. 28.72% of the stock is owned by institutional investors and hedge funds.

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.

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