Goldman Sachs BDC (NYSE:GSBD) Hits New 12-Month Low After Analyst Downgrade

Goldman Sachs BDC, Inc. (NYSE:GSBD)’s share price hit a new 52-week low during mid-day trading on Monday after Wells Fargo & Company lowered their price target on the stock from $9.00 to $8.00. Wells Fargo & Company currently has an underweight rating on the stock. Goldman Sachs BDC traded as low as $8.81 and last traded at $9.1050, with a volume of 432417 shares. The stock had previously closed at $9.06.

Several other analysts have also issued reports on the stock. Lucid Cap Mkts upgraded shares of Goldman Sachs BDC to a “hold” rating in a research report on Monday, December 15th. The Goldman Sachs Group assumed coverage on Goldman Sachs BDC in a research note on Monday, December 15th. They issued a “neutral” rating and a $10.50 price target on the stock. Weiss Ratings restated a “sell (d+)” rating on shares of Goldman Sachs BDC in a research report on Monday, December 29th. Finally, Zacks Research raised Goldman Sachs BDC from a “strong sell” rating to a “hold” rating in a research note on Thursday, November 13th. Three analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus target price of $9.25.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in GSBD. Balyasny Asset Management L.P. raised its position in shares of 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 acquiring an additional 888,608 shares during the last quarter. Ares Management LLC lifted its position in shares of Goldman Sachs BDC by 77.0% in the 4th quarter. Ares Management LLC now owns 1,413,058 shares of the financial services provider’s stock worth $13,113,000 after purchasing an additional 614,637 shares during the period. American Financial Group Inc. bought a new stake in shares of Goldman Sachs BDC in the 4th quarter valued at $4,701,000. Invesco Ltd. increased its position in shares of Goldman Sachs BDC by 40.1% during the fourth quarter. Invesco Ltd. now owns 1,490,799 shares of the financial services provider’s stock worth $13,835,000 after buying an additional 426,859 shares during the period. Finally, Closed End Fund Advisors Inc. acquired a new position in Goldman Sachs BDC in the fourth quarter valued at $3,858,000. Institutional investors and hedge funds own 28.72% of the company’s stock.

Goldman Sachs BDC Price Performance

The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 1.27. The stock has a market capitalization of $1.06 billion, a P/E ratio of 8.93 and a beta of 0.62. The business’s 50 day simple moving average is $9.32 and its two-hundred day simple moving average is $9.99.

Goldman Sachs BDC (NYSE:GSBD) last issued its quarterly earnings data on Thursday, February 26th. The financial services provider reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.01. Goldman Sachs BDC had a return on equity of 12.06% and a net margin of 32.62%.The business had revenue of $38.79 million for the quarter, compared to analysts’ expectations of $87.18 million. As a group, sell-side analysts forecast that Goldman Sachs BDC, Inc. will post 2.19 earnings per share for the current fiscal year.

Goldman Sachs BDC Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 28th. Investors of record on Tuesday, March 31st will be given a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 13.8%. The ex-dividend date of this dividend is Tuesday, March 31st. Goldman Sachs BDC’s dividend payout ratio (DPR) is presently 123.08%.

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.