The Goldman Sachs Group (NYSE:GS) Releases Quarterly Earnings Results, Beats Expectations By $6.51 EPS

Key Points

• Goldman Sachs beat earnings expectations for the quarter, reporting $20.98 per share versus the $14.47 consensus estimate, while revenue came in at $20.34 billion, well above forecasts of $16.22 billion.
• The company posted solid profitability metrics, including a 16.53% return on equity and a 14.13% net margin, even as shares were noted to be down 0.8% in trading.
• Analyst sentiment remains mixed but generally constructive: several firms raised price targets, and the stock currently carries a Hold consensus with an average target price of $1,005.33.

The Goldman Sachs Group (NYSE:GS - Get Free Report) posted its earnings results on Tuesday. The investment management company reported $20.98 earnings per share for the quarter, beating analysts' consensus estimates of $14.47 by $6.51, FiscalAI reports. The company had revenue of $20.34 billion for the quarter, compared to analyst estimates of $16.22 billion. The Goldman Sachs Group had a return on equity of 16.53% and a net margin of 14.13%.

The Goldman Sachs Group Trading Down 0.8%

Shares of The Goldman Sachs Group stock opened at $1,047.08 on Tuesday. The Goldman Sachs Group has a 1 year low of $691.30 and a 1 year high of $1,125.00. The firm has a market cap of $308.90 billion, a PE ratio of 19.14, a P/E/G ratio of 1.35 and a beta of 1.30. The stock has a fifty day moving average price of $1,020.45 and a 200-day moving average price of $939.94. The company has a debt-to-equity ratio of 2.89, a current ratio of 0.63 and a quick ratio of 0.63.

Analyst Ratings Changes

Several brokerages have weighed in on GS. Wells Fargo & Company raised their price objective on The Goldman Sachs Group from $1,000.00 to $1,195.00 and gave the company an "overweight" rating in a research note on Wednesday, June 24th. Evercore reiterated an "outperform" rating on shares of The Goldman Sachs Group in a research note on Monday, July 6th. CICC Research increased their target price on shares of The Goldman Sachs Group from $825.00 to $980.00 and gave the company an "outperform" rating in a report on Tuesday, May 19th. Jefferies Financial Group cut their price target on shares of The Goldman Sachs Group from $1,125.00 to $1,049.00 and set a "buy" rating on the stock in a report on Monday, April 6th. Finally, UBS Group upped their price objective on shares of The Goldman Sachs Group from $940.00 to $1,120.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 7th. Ten research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $1,005.33.

The Goldman Sachs Group News Roundup

Here are the key news stories impacting The Goldman Sachs Group this week:

• Positive Sentiment: Goldman Sachs is set to report alongside other major banks as dealmaking activity returns, raising expectations for a strong quarter and potential earnings upside. Wall Street to report bumper quarter as dealmaking returns
• Positive Sentiment: Analysts and market previews suggest big U.S. banks, including Goldman Sachs, may beat consensus estimates thanks to strong capital markets activity, resilient economic conditions, and improving wealth-management flows. US bank earnings could surprise to the upside as Bank of America highlights strong operating backdrop
• Positive Sentiment: Goldman Sachs said its outlook for Indian equities is constructive, forecasting a rebound in the Nifty 50 and highlighting banks, large caps, and value names as attractive themes. Goldman Sachs pegs Nifty target at 26,500 by June 2027; lists 15 stocks from key themes
• Neutral Sentiment: Goldman Sachs’ new Bitcoin Banking Adoption Index placed GS in the middle of the pack on crypto adoption, but the report appears more informational than stock-moving. Bitcoin Adoption by Major Banks 'Accelerating, But Still Early,' Says Michael Saylor as New Index Ranks JPMorgan, Goldman Sachs, and Others
• Negative Sentiment: A separate note warned that higher interest rates and inflation pressures could be a headwind for the broader market environment, which may temper enthusiasm heading into earnings. Goldman Sachs drops new warning on interest rate hikes
• Negative Sentiment: One pre-earnings technical commentary said GS has pulled back from its highs and could be vulnerable if results or guidance disappoint. Goldman Sachs stock forms a risky pattern ahead of earnings

Insider Activity at The Goldman Sachs Group

In other news, CFO Denis P. Coleman sold 6,857 shares of the company's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $973.55, for a total transaction of $6,675,632.35. Following the transaction, the chief financial officer owned 31,070 shares of the company's stock, valued at $30,248,198.50. This represents a 18.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Alex S. Golten sold 1,116 shares of the company's stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $936.18, for a total transaction of $1,044,776.88. Following the sale, the insider directly owned 2,578 shares in the company, valued at approximately $2,413,472.04. This trade represents a 30.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 33,681 shares of company stock valued at $31,737,875 over the last quarter. Corporate insiders own 0.55% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Garton & Associates Financial Advisors LLC purchased a new position in shares of The Goldman Sachs Group in the 4th quarter worth about $26,000. Graney & King LLC raised its holdings in shares of The Goldman Sachs Group by 51.5% during the 2nd quarter. Graney & King LLC now owns 50 shares of the investment management company's stock valued at $35,000 after buying an additional 17 shares in the last quarter. Osterweis Capital Management Inc. bought a new stake in The Goldman Sachs Group in the 4th quarter worth approximately $38,000. JPL Wealth Management LLC purchased a new stake in The Goldman Sachs Group in the third quarter worth approximately $50,000. Finally, Wilkerson Advisory Group LLC purchased a new stake in The Goldman Sachs Group in the fourth quarter worth approximately $53,000. 71.21% of the stock is currently owned by hedge funds and other institutional investors.

About The Goldman Sachs Group

The Goldman Sachs Group, Inc is a global investment banking and financial services firm headquartered in New York City. Founded in 1869 as a commercial paper business, the company has grown into a diversified financial institution that provides a broad range of services to corporations, financial institutions, governments and individuals. The firm is led by Chief Executive Officer David M. Solomon and operates across major financial centers worldwide.

Goldman Sachs' core businesses include investment banking, global markets, asset and wealth management, and consumer banking.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.