Goldman Sachs Group (GS) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Goldman Sachs Group (NYSE:GS) from a buy rating to a hold rating in a report published on Wednesday.

According to Zacks, “Shares of Goldman have underperformed the industry year to date. However, the company boasts an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. The company’s well-diversified business and focus to capitalize on growth opportunities through strategic moves will continue to strengthen the overall business. Further, its cost-control measures are commendable. Additionally, the company’s steady capital-deployment activities have boosted investors' confidence, along with the Fed's approval to 2018 Capital Plan. However, litigation issues yet to be resolved remain a key concern. Also, declining revenues from Institutional Client Services division impact the company's topline.”

GS has been the subject of several other reports. Credit Suisse Group raised Goldman Sachs Group from a neutral rating to an outperform rating in a report on Tuesday, July 17th. JPMorgan Chase & Co. reissued a buy rating and issued a $285.00 price objective on shares of Goldman Sachs Group in a report on Monday, September 10th. Oppenheimer increased their price objective on Goldman Sachs Group from $304.00 to $335.00 and gave the company an outperform rating in a report on Wednesday, July 18th. Societe Generale raised Goldman Sachs Group from a sell rating to a hold rating in a report on Wednesday, July 18th. Finally, Keefe, Bruyette & Woods decreased their price objective on Goldman Sachs Group from $260.00 to $255.00 and set a hold rating for the company in a report on Wednesday, July 18th. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and nine have assigned a buy rating to the stock. The stock has a consensus rating of Hold and a consensus price target of $273.69.

Shares of Goldman Sachs Group stock opened at $229.24 on Wednesday. The company has a market capitalization of $86.14 billion, a price-to-earnings ratio of 11.60, a P/E/G ratio of 0.72 and a beta of 1.27. Goldman Sachs Group has a 52 week low of $218.89 and a 52 week high of $275.31. The company has a debt-to-equity ratio of 3.02, a quick ratio of 0.90 and a current ratio of 0.90.

Goldman Sachs Group (NYSE:GS) last announced its quarterly earnings results on Tuesday, July 17th. The investment management company reported $5.98 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $4.66 by $1.32. The company had revenue of $9.40 billion for the quarter, compared to analyst estimates of $8.74 billion. Goldman Sachs Group had a net margin of 15.72% and a return on equity of 13.58%. The firm’s revenue was up 19.2% on a year-over-year basis. During the same period in the prior year, the firm posted $3.95 earnings per share. analysts anticipate that Goldman Sachs Group will post 24.92 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 27th. Investors of record on Thursday, August 30th will be issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 1.40%. The ex-dividend date of this dividend is Wednesday, August 29th. Goldman Sachs Group’s dividend payout ratio is presently 16.19%.

In related news, insider David M. Solomon sold 8,382 shares of the stock in a transaction on Wednesday, July 18th. The stock was sold at an average price of $232.08, for a total transaction of $1,945,294.56. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider David M. Solomon sold 8,488 shares of the stock in a transaction on Wednesday, August 1st. The stock was sold at an average price of $237.92, for a total value of $2,019,464.96. The disclosure for this sale can be found here. 2.57% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently modified their holdings of GS. Summit Trail Advisors LLC raised its position in Goldman Sachs Group by 24,200.2% in the first quarter. Summit Trail Advisors LLC now owns 944,790 shares of the investment management company’s stock worth $945,000 after acquiring an additional 940,902 shares in the last quarter. Renaissance Technologies LLC raised its position in Goldman Sachs Group by 716.4% in the second quarter. Renaissance Technologies LLC now owns 801,657 shares of the investment management company’s stock worth $176,821,000 after acquiring an additional 703,457 shares in the last quarter. Investec Asset Management LTD raised its position in Goldman Sachs Group by 360.3% in the second quarter. Investec Asset Management LTD now owns 704,170 shares of the investment management company’s stock worth $155,319,000 after acquiring an additional 551,181 shares in the last quarter. Millennium Management LLC raised its position in Goldman Sachs Group by 100.6% in the first quarter. Millennium Management LLC now owns 999,532 shares of the investment management company’s stock worth $251,742,000 after acquiring an additional 501,354 shares in the last quarter. Finally, PointState Capital LP purchased a new position in Goldman Sachs Group in the first quarter worth $109,184,000. 71.04% of the stock is owned by hedge funds and other institutional investors.

About Goldman Sachs Group

The Goldman Sachs Group, Inc operates as an investment banking, securities, and investment management company worldwide. It operates through four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, spin-offs, and risk management; and underwriting services, such as debt and equity underwriting of public offerings and private placements of various securities and other financial instruments, as well as derivative transactions with public and private sector clients.

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