Investors Buy Large Volume of Goldman Sachs BDC Call Options (NYSE:GSBD)

Goldman Sachs BDC, Inc. (NYSE:GSBD) saw some unusual options trading activity on Thursday. Investors acquired 7,029 call options on the company. This represents an increase of approximately 5,031% compared to the typical volume of 137 call options.

Goldman Sachs BDC Stock Down 0.5%

NYSE:GSBD traded down $0.05 during midday trading on Thursday, reaching $9.71. 329,075 shares of the stock traded hands, compared to its average volume of 850,596. The stock has a market capitalization of $1.11 billion, a PE ratio of 8.37 and a beta of 0.64. Goldman Sachs BDC has a 12-month low of $9.35 and a 12-month high of $13.44. The company has a debt-to-equity ratio of 1.27, a quick ratio of 1.81 and a current ratio of 1.81. The business has a 50-day moving average of $9.84 and a two-hundred day moving average of $10.80.

Goldman Sachs BDC (NYSE:GSBD) last issued its quarterly 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. The business had revenue of $91.60 million for the quarter, compared to the consensus estimate of $88.16 million. Goldman Sachs BDC had a return on equity of 12.78% and a net margin of 34.72%. On average, equities analysts forecast that Goldman Sachs BDC will post 2.19 earnings per share for the current fiscal year.

Goldman Sachs BDC Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, January 27th. Stockholders of record on Wednesday, December 31st will be paid a dividend of $0.32 per share. The ex-dividend date is Wednesday, December 31st. This is a positive change from Goldman Sachs BDC’s previous quarterly dividend of $0.04. This represents a $1.28 dividend on an annualized basis and a dividend yield of 13.2%. Goldman Sachs BDC’s payout ratio is presently 110.34%.

Hedge Funds Weigh In On Goldman Sachs BDC

Several hedge funds and other institutional investors have recently modified their holdings of the stock. MTM Investment Management LLC purchased a new stake in shares of Goldman Sachs BDC in the 2nd quarter valued at $25,000. Farther Finance Advisors LLC purchased a new position in shares of Goldman Sachs BDC during the 2nd quarter valued at about $34,000. CWM LLC lifted its holdings in shares of Goldman Sachs BDC by 187.8% in the 3rd quarter. CWM LLC now owns 4,864 shares of the financial services provider’s stock valued at $49,000 after buying an additional 3,174 shares during the period. State of Alaska Department of Revenue purchased a new stake in shares of Goldman Sachs BDC in the third quarter worth about $51,000. Finally, Private Trust Co. NA grew its holdings in Goldman Sachs BDC by 1,471.7% during the second quarter. Private Trust Co. NA now owns 5,045 shares of the financial services provider’s stock worth $57,000 after acquiring an additional 4,724 shares during the period. 28.72% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently commented on GSBD shares. The Goldman Sachs Group began coverage on Goldman Sachs BDC in a research note on Monday. They set a “neutral” rating and a $10.50 price target on the stock. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Goldman Sachs BDC in a research report on Monday. Wells Fargo & Company dropped their price objective 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. Finally, Zacks Research raised shares of Goldman Sachs BDC from a “strong sell” rating to a “hold” rating in a research note on Thursday, November 13th. Two equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus price target of $9.75.

Goldman Sachs BDC Company Profile

Goldman Sachs BDC, Inc is a business development company specializing in middle market and mezzanine investment in private companies. It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities.