Goldman Sachs BDC (NYSE:GSBD) Reaches New 52-Week Low – Should You Sell?

Goldman Sachs BDC, Inc. (NYSE:GSBD)’s stock price reached a new 52-week low during trading on Tuesday . The company traded as low as $9.19 and last traded at $9.1850, with a volume of 185849 shares traded. The stock had previously closed at $9.31.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on GSBD. Wells Fargo & Company lowered their target price on shares of Goldman Sachs BDC from $10.00 to $9.00 and set an “underweight” rating on the stock in a research note on Monday, November 10th. The Goldman Sachs Group initiated coverage on shares of Goldman Sachs BDC in a report on Monday, December 15th. They set a “neutral” rating and a $10.50 price target for the company. Lucid Cap Mkts upgraded shares of Goldman Sachs BDC to a “hold” rating in a research note on Monday, December 15th. Zacks Research upgraded Goldman Sachs BDC from a “strong sell” rating to a “hold” rating in a research report on Thursday, November 13th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Goldman Sachs BDC in a research report on Monday, December 29th. Three equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Goldman Sachs BDC currently has a consensus rating of “Reduce” and an average target price of $9.75.

Goldman Sachs BDC Stock Performance

The stock has a market cap of $1.05 billion, a P/E ratio of 7.97 and a beta of 0.63. The stock has a fifty day simple moving average of $9.72 and a 200-day simple moving average of $10.59. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 1.27.

Goldman Sachs BDC (NYSE:GSBD) last issued its earnings results on Thursday, November 6th. The financial services provider reported $0.40 EPS for the quarter, beating the consensus estimate of $0.37 by $0.03. The firm had revenue of $91.60 million during the quarter, compared to the consensus estimate of $88.16 million. Goldman Sachs BDC had a net margin of 34.72% and a return on equity of 12.78%. Equities analysts expect 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 disclosed 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 dividend on an annualized basis and a yield of 13.8%. This is a positive change from Goldman Sachs BDC’s previous quarterly dividend of $0.04. The ex-dividend date of this dividend is Wednesday, December 31st. Goldman Sachs BDC’s dividend payout ratio (DPR) is presently 110.34%.

Institutional Trading of Goldman Sachs BDC

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Kingstone Capital Partners Texas LLC bought a new stake in shares of Goldman Sachs BDC in the 2nd quarter valued at $97,711,000. Generali Asset Management SPA SGR grew its position 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 during the period. Balyasny Asset Management L.P. grew its position in Goldman Sachs BDC by 412.8% in the 2nd quarter. Balyasny Asset Management L.P. now owns 1,103,870 shares of the financial services provider’s stock valued at $12,419,000 after purchasing an additional 888,608 shares during the period. Ares Management LLC raised its holdings in Goldman Sachs BDC by 72.8% during the second quarter. Ares Management LLC now owns 798,421 shares of the financial services provider’s stock worth $8,982,000 after buying an additional 336,437 shares during the last quarter. Finally, Osaic Holdings Inc. lifted its stake in shares of 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 buying an additional 332,002 shares in the last quarter. Institutional investors and hedge funds own 28.72% of the company’s stock.

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.