Goldman Sachs BDC (NYSE:GSBD) Sets New 52-Week Low - Here's What Happened

Key Points

• Goldman Sachs BDC shares hit a new 52-week low on Thursday, trading as low as $8.64 before last changing hands at $8.6750, down from the prior close of $8.93.
• Several analysts turned more negative on the stock, including Goldman Sachs downgrading GSBD to “reduce” and Bank of America reiterating an “underperform” rating with an $8.50 target. The consensus rating now stands at Strong Sell with an average price target of $8.50.
• The company recently missed earnings expectations, posting $0.22 EPS versus $0.29 expected and revenue far below estimates. It also declared a quarterly dividend of $0.32 per share, implying a high 14.9% annualized yield.

Goldman Sachs BDC, Inc. (NYSE:GSBD - Get Free Report)'s share price reached a new 52-week low on Thursday . The company traded as low as $8.64 and last traded at $8.6750, with a volume of 897211 shares traded. The stock had previously closed at $8.93.

Analyst Ratings Changes

Several research analysts have weighed in on GSBD shares. The Goldman Sachs Group downgraded Goldman Sachs BDC from a "neutral" rating to a "reduce" rating and set a $8.50 target price on the stock. in a research note on Thursday. Zacks Research downgraded Goldman Sachs BDC from a "hold" rating to a "strong sell" rating in a report on Tuesday, May 19th. Bank of America reiterated an "underperform" rating and issued a $8.50 price objective (down from $9.00) on shares of Goldman Sachs BDC in a research report on Thursday. Weiss Ratings reissued a "hold (c-)" rating on shares of Goldman Sachs BDC in a research note on Tuesday, June 2nd. Finally, Wall Street Zen downgraded shares of Goldman Sachs BDC from a "hold" rating to a "sell" rating in a research report on Saturday, May 16th. Three research analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Strong Sell" and an average price target of $8.50.

Goldman Sachs BDC Price Performance

The stock has a fifty day moving average of $9.23 and a two-hundred day moving average of $9.27. The stock has a market cap of $969.78 million, a price-to-earnings ratio of 13.28 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 (NYSE:GSBD - Get Free Report) last issued its earnings results on Thursday, May 7th. The financial services provider reported $0.22 EPS for the quarter, missing the consensus estimate of $0.29 by ($0.07). The company had revenue of $10.35 million for 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 research analysts anticipate that Goldman Sachs BDC, Inc. will post 1.15 earnings per share for the current year.

Goldman Sachs BDC Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 28th. Stockholders of record on Tuesday, June 30th will be given a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 14.9%. The ex-dividend date is Tuesday, June 30th. Goldman Sachs BDC's dividend payout ratio (DPR) is presently 196.92%.

Hedge Funds Weigh In On Goldman Sachs BDC

Hedge funds have recently bought and sold shares of the company. ORG Partners LLC purchased a new stake in Goldman Sachs BDC during the fourth quarter worth $33,000. Quantbot Technologies LP purchased a new position in shares of Goldman Sachs BDC in the second quarter valued at $62,000. Kestra Advisory Services LLC acquired a new position in shares of Goldman Sachs BDC during the 4th quarter worth $57,000. Advisory Services Network LLC acquired a new position in shares of Goldman Sachs BDC during the 3rd quarter worth $68,000. Finally, SHP Wealth Management purchased a new stake in shares of Goldman Sachs BDC in the 4th quarter worth about $63,000. 28.72% of the stock is owned by hedge funds and other institutional investors.

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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