Goldman Sachs BDC (NYSE:GSBD) Hits New 12-Month Low – Should You Sell?

Goldman Sachs BDC, Inc. (NYSE:GSBD) hit a new 52-week low on Wednesday . The company traded as low as $9.30 and last traded at $9.3050, with a volume of 380244 shares trading hands. The stock had previously closed at $9.63.

Analysts Set New Price Targets

A number of brokerages have recently commented on GSBD. Lucid Cap Mkts raised shares of Goldman Sachs BDC to a “hold” rating in a report on Monday, December 15th. Zacks Research upgraded shares of Goldman Sachs BDC from a “strong sell” rating to a “hold” rating in a research note on Thursday, November 13th. The Goldman Sachs Group started coverage on shares of Goldman Sachs BDC in a research note on Monday, December 15th. They set a “neutral” rating and a $10.50 target price for the company. Weiss Ratings restated a “sell (d+)” rating on shares of Goldman Sachs BDC in a research report on Monday. Finally, Wells Fargo & Company reduced their price objective on Goldman Sachs BDC from $10.00 to $9.00 and set an “underweight” rating for the company in a research note on Monday, November 10th. Three equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus price target of $9.75.

Goldman Sachs BDC Stock Performance

The stock’s 50-day moving average is $9.81 and its 200 day moving average is $10.68. The stock has a market cap of $1.06 billion, a price-to-earnings ratio of 7.99 and a beta of 0.64. The company has a debt-to-equity ratio of 1.27, a current ratio of 1.81 and a quick ratio of 1.81.

Goldman Sachs BDC (NYSE:GSBD) last issued its earnings results on Thursday, November 6th. The financial services provider reported $0.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.37 by $0.03. Goldman Sachs BDC had a return on equity of 12.78% and a net margin of 34.72%.The business had revenue of $91.60 million during the quarter, compared to the consensus estimate of $88.16 million. As a group, analysts predict that Goldman Sachs BDC, Inc. will post 2.19 earnings per share for the current fiscal year.

Goldman Sachs BDC Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, January 27th. Shareholders of record on Wednesday, December 31st will be given a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 13.8%. The ex-dividend date is Wednesday, December 31st. This is an increase from Goldman Sachs BDC’s previous quarterly dividend of $0.04. Goldman Sachs BDC’s payout ratio is presently 110.34%.

Institutional Trading of Goldman Sachs BDC

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Kingstone Capital Partners Texas LLC purchased a new stake in shares of Goldman Sachs BDC during the 2nd quarter worth approximately $97,711,000. Generali Asset Management SPA SGR increased its stake in Goldman Sachs BDC by 52.3% in the 2nd quarter. Generali Asset Management SPA SGR now owns 3,294,022 shares of the financial services provider’s stock valued at $37,058,000 after purchasing an additional 1,131,403 shares in the last quarter. Balyasny Asset Management L.P. raised 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 purchasing an additional 888,608 shares during the last quarter. Ares Management LLC purchased a new stake in Goldman Sachs BDC during the first quarter worth $5,373,000. Finally, Osaic Holdings Inc. grew its holdings in Goldman Sachs BDC by 176.0% in the second quarter. Osaic Holdings Inc. now owns 520,676 shares of the financial services provider’s stock valued at $5,858,000 after purchasing an additional 332,002 shares during the last quarter. Institutional investors and hedge funds own 28.72% of the company’s stock.

Goldman Sachs BDC Company Profile

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.