Goldman Sachs BDC (NYSE:GSBD) Sets New 12-Month Low - Should You Sell?

Key Points

• Goldman Sachs BDC shares fell to a new 52-week low of $8.35, below the previous close of $8.50. Analysts’ average rating is “Strong Sell,” with an average price target of $8.50.
• The company missed quarterly expectations, reporting earnings per share of $0.32 versus $0.35 forecast and revenue of $74.99 million versus $80.13 million expected.
• Goldman Sachs BDC declared a quarterly dividend of $0.32 per share, equivalent to a 15.3% annualized yield; its reported payout ratio is 492.31%.

Goldman Sachs BDC, Inc. (NYSE:GSBD - Get Free Report) shares hit a new 52-week low during mid-day trading on Thursday. The company traded as low as $8.35 and last traded at $8.3550, with a volume of 227,591 shares trading hands. The stock had previously closed at $8.50.

Analyst Ratings Changes

Several research analysts have commented on the company. Weiss Ratings downgraded Goldman Sachs BDC from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, November 4th. Wall Street Zen raised Goldman Sachs BDC from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Truist Financial cut their target price on Goldman Sachs BDC from $10.00 to $9.00 and set a "hold" rating on the stock in a research report on Tuesday. Finally, Zacks Research cut shares of Goldman Sachs BDC from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. Three research analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Strong Sell" and an average target price of $8.50.

Goldman Sachs BDC Stock Down 1.7%

The business has a 50-day moving average price of $9.14 and a 200-day moving average price of $9.24. The stock has a market cap of $927.81 million, a PE ratio of 32.14 and a beta of 0.62. The company has a current ratio of 0.73, a quick ratio of 0.69 and a debt-to-equity ratio of 1.25.

Goldman Sachs BDC (NYSE:GSBD - Get Free Report) last released its quarterly earnings results on Thursday, November 5th. The financial services provider reported $0.32 earnings per share for the quarter, missing the consensus estimate of $0.35 by ($0.03). The company had revenue of $74.99 million for the quarter, compared to analyst estimates of $80.13 million. Goldman Sachs BDC had a return on equity of 10.56% and a net margin of 9.21%. As a group, analysts forecast that Goldman Sachs BDC, Inc. will post 1.25 earnings per share for the current year.

Goldman Sachs BDC Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 27th. Investors of record on Thursday, December 31st will be given a dividend of $0.32 per share. The ex-dividend date is Thursday, December 31st. This represents a $1.28 dividend on an annualized basis and a yield of 15.3%. Goldman Sachs BDC's payout ratio is presently 492.31%.

Institutional Trading of Goldman Sachs BDC

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Private Management Group Inc. boosted its holdings in Goldman Sachs BDC by 5.0% in the 3rd quarter. Private Management Group Inc. now owns 5,440,142 shares of the financial services provider's stock valued at $49,451,000 after purchasing an additional 261,504 shares during the last quarter. Bank of America Corp DE grew its holdings in shares of Goldman Sachs BDC by 1.2% in the first quarter. Bank of America Corp DE now owns 997,570 shares of the financial services provider's stock valued at $8,858,000 after purchasing an additional 11,915 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its stake in shares of Goldman Sachs BDC by 1.4% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 711,783 shares of the financial services provider's stock valued at $6,470,000 after acquiring an additional 10,000 shares in the last quarter. Columbus Macro LLC boosted its stake in shares of Goldman Sachs BDC by 6.4% in the 3rd quarter. Columbus Macro LLC now owns 659,477 shares of the financial services provider's stock valued at $5,995,000 after buying an additional 39,626 shares during the period. Finally, GraniteShares Advisors LLC grew its holdings in Goldman Sachs BDC by 1.6% during the 3rd quarter. GraniteShares Advisors LLC now owns 295,354 shares of the financial services provider's stock worth $2,685,000 after acquiring an additional 4,566 shares in the last quarter. 28.72% of the stock is owned by institutional investors and hedge funds.

Goldman Sachs BDC Company Profile

Goldman Sachs BDC, Inc. is a business development company that provides financing to middle-market companies, primarily in the United States. It seeks to support businesses that may need capital for growth, acquisitions, refinancing, or other corporate purposes. The company invests mainly in debt securities, including senior secured, unitranche, second-lien, and subordinated loans. It may also make equity and equity-related investments, often alongside its lending activities. Goldman Sachs BDC is externally managed by Goldman Sachs Asset Management, part of Goldman Sachs.

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