As of its most recent Form 13F filing with the SEC, Raymond James Financial Services Advisors Inc. has reduced its position in Goldman Sachs BDC, Inc. (NYSE:GSBD) by 22.5% during the fourth quarter. The institutional investor now owns only 184,635 shares of the financial services provider’s stock, having sold 53,556 shares during that period. This reduction comes as several equities analysts recently commented on the company.
StockNews.com initiated coverage on Goldman Sachs BDC last Thursday, May 18th and issued a “hold” rating for the company. Meanwhile, Wells Fargo & Company lowered their target price from $15 to $14.50 and set an “equal weight” rating for the stock in a research note on Monday, February 27th. According to data from Bloomberg, GSBD presently carries a consensus rating of “Hold” from five analysts with a consensus target price of $15.67.
On Tuesday morning at market open, GSBD’s stock was seen trading at $13.09 per share – lower than its one-year high of $18.56 and just above its one-year low of $12.75 – with a market cap valued at $1.43 billion while exhibiting a P/E ratio of 31.93 and beta of 1.19.. Additionally, the stock boasted a simple moving average of $13.56 over the past fifty days along with a two-hundred-day simple moving average standing at $14.59.
Raymond James Financial Service Advisor’s reduction could be reflective of negative sentiment regarding GSBD’s financial performance or consolidation within their fund management practices overall; however other variables may have caused this decrease as well such as reallocation towards other holdings due to portfolio rebalancing or attempting cash flow injection into other investments deemed more advantageous opportunities at that time.
With myriad possible explanations behind Raymond James Financial Services Advisors Inc. trimming its position in GSBD, it will be interesting to see how this action influences the market’s ongoing opinion of this financial services provider. As always in such volatile and complex financial arenas, only time will tell.
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Institutional Investors Show Confidence in Goldman Sachs BDC Through Stock Transactions
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”GSBD” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Goldman Sachs BDC, a financial services provider specializing in lending to middle-market companies, has recently seen a number of institutional investors buy and sell shares of its stock. Lazard Asset Management LLC purchased a stake valued at $29,000 in the first quarter of this year, while Nomura Asset Management Co. Ltd., which already owned 3,934 shares, lifted its position by an additional 2,684 shares in the third quarter of 2022. Quantbot Technologies LP bought a new stake in Goldman Sachs BDC during the second quarter of 2022 for $100,000.
Meanwhile, JTC Employer Solutions Trustee and Belpointe Asset Management LLC also purchased new stakes valued at $86,000 and $103,000 respectively in the fourth quarter of last year. Hedge funds and other institutional investors presently own 28.35% of the stock.
On May 8th this year, insider David Miller purchased an additional 20,000 shares of Goldman Sachs BDC stock at an average cost of $13.16 per share for a total transaction value of $263,200. Following the acquisition,Miller now owns a total of 20,000 shares valued at $263,200.
Several equities analysts have recently issued ratings on the company with StockNews.com initiating coverage with a “hold” rating for Goldman Sachs BDC and Wells Fargo & Company issuing an “equal weight” rating for the company with a lowered target price from $15 to $14.50.
Goldman Sachs BDC’s most recent quarterly earnings report showed that it had missed analysts’ expectations regarding earnings per share by nine cents for the first quarter ending on May 4th. The company reported net margins at 10.90% and return on equity at 14.15%, however revenue during that same period was only marginally above expectations.
The company also announced that shareholders will be issued a $0.45 quarterly dividend per share on July 27th, representing an annualized payout of $1.80 and yielding a return of 13.75%. The ex-dividend date is June 29th and, according to data from Bloomberg, the company currently has a consensus rating of “Hold” with a target price of $15.67 per share.
Despite the recent fluctuations in the stock market for Goldman Sachs BDC, various institutional investors seem to maintain confidence in the company’s ability to provide financial services aimed at middle-market companies while still maintaining a healthy profit margin and return on equity.
