Goldman Sachs BDC (NYSE:GSBD) Sets New 52-Week Low After Analyst Downgrade

Goldman Sachs BDC, Inc. (NYSE:GSBD)’s stock price hit a new 52-week low during mid-day trading on Tuesday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The stock traded as low as $8.65 and last traded at $8.7850, with a volume of 279785 shares. The stock had previously closed at $8.75.

Several other research analysts have also recently issued reports on GSBD. Wells Fargo & Company dropped their price objective on Goldman Sachs BDC from $9.00 to $8.00 and set an “underweight” rating on the stock in a research note on Monday, March 2nd. Wall Street Zen cut Goldman Sachs BDC from a “hold” rating to a “sell” rating in a research note on Saturday, May 16th. Truist Financial dropped their price objective on Goldman Sachs BDC from $10.00 to $9.00 and set a “hold” rating on the stock in a research note on Tuesday. Finally, Weiss Ratings upgraded Goldman Sachs BDC from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, March 5th. Four analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $9.17.

Insiders Place Their Bets

In related news, Director Carlos E. Evans bought 50,000 shares of the stock in a transaction on Thursday, April 2nd. The stock was bought at an average price of $9.02 per share, for a total transaction of $451,000.00. Following the completion of the acquisition, the director directly owned 64,446 shares in the company, valued at approximately $581,302.92. This represents a 346.12% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 0.13% of the stock is currently owned by corporate insiders.

Institutional Trading of Goldman Sachs BDC

A number of hedge funds have recently bought and sold shares of GSBD. Balyasny Asset Management L.P. lifted its holdings in Goldman Sachs BDC by 412.8% during the second quarter. Balyasny Asset Management L.P. now owns 1,103,870 shares of the financial services provider’s stock worth $12,419,000 after buying an additional 888,608 shares during the period. Ares Management LLC lifted its holdings in shares of Goldman Sachs BDC by 77.0% during the 4th quarter. Ares Management LLC now owns 1,413,058 shares of the financial services provider’s stock valued at $13,113,000 after purchasing an additional 614,637 shares during the last quarter. American Financial Group Inc. purchased a new stake in shares of Goldman Sachs BDC during the 4th quarter valued at $4,701,000. Invesco Ltd. lifted its holdings in shares of Goldman Sachs BDC by 40.1% during the 4th quarter. Invesco Ltd. now owns 1,490,799 shares of the financial services provider’s stock valued at $13,835,000 after purchasing an additional 426,859 shares during the last quarter. Finally, Closed End Fund Advisors Inc. purchased a new stake in shares of Goldman Sachs BDC during the 4th quarter valued at $3,858,000. Hedge funds and other institutional investors own 28.72% of the company’s stock.

Goldman Sachs BDC Stock Performance

The firm has a fifty day moving average price of $9.28 and a 200 day moving average price of $9.43. The company has a debt-to-equity ratio of 1.39, a quick ratio of 1.11 and a current ratio of 1.11. The stock has a market cap of $1.01 billion, a PE ratio of 13.75 and a beta of 0.62.

Goldman Sachs BDC (NYSE:GSBD) last issued its quarterly earnings data 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). Goldman Sachs BDC had a net margin of 21.32% and a return on equity of 10.94%. The business had revenue of $10.35 million for the quarter, compared to analysts’ expectations of $83.78 million. Research analysts forecast that Goldman Sachs BDC, Inc. will post 1.23 earnings per share for the current fiscal year.

Goldman Sachs BDC Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 28th. Stockholders of record on Tuesday, June 30th will be issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 14.3%. The ex-dividend date is Tuesday, June 30th. Goldman Sachs BDC’s dividend payout ratio is currently 196.92%.

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.