Goldman Sachs BDC (NYSE:GSBD) Sets New 1-Year Low – What’s Next?

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

Wall Street Analyst Weigh In

Several brokerages have recently commented on GSBD. Lucid Cap Mkts upgraded shares of Goldman Sachs BDC to a “hold” rating in a report on Monday, December 15th. Zacks Research raised Goldman Sachs BDC from a “strong sell” rating to a “hold” rating in a research report on Thursday, November 13th. Wells Fargo & Company decreased their price target on 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 started coverage on Goldman Sachs BDC in a research note on Monday, December 15th. They issued a “neutral” rating and a $10.50 price objective for the company. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of Goldman Sachs BDC in a research note on Monday. Three investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average target price of $9.75.

Goldman Sachs BDC Stock Down 3.8%

The firm has a market cap of $1.06 billion, a PE ratio of 7.99 and a beta of 0.64. 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 business has a 50-day moving average price of $9.81 and a two-hundred day moving average price of $10.68.

Goldman Sachs BDC (NYSE:GSBD) last released its earnings results on Thursday, November 6th. The financial services provider reported $0.40 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $91.60 million during the quarter, compared to analyst estimates of $88.16 million. On average, equities research analysts expect that Goldman Sachs BDC, Inc. will post 2.19 EPS for the current year.

Goldman Sachs BDC Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, January 27th. Investors 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 13.8%. Goldman Sachs BDC’s payout ratio is currently 110.34%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. MTM Investment Management LLC purchased a new stake in shares of Goldman Sachs BDC in the 2nd quarter valued at approximately $25,000. Farther Finance Advisors LLC purchased a new position in shares of Goldman Sachs BDC in the 2nd quarter valued at about $34,000. CWM LLC raised its stake in Goldman Sachs BDC by 187.8% during the 3rd quarter. CWM LLC now owns 4,864 shares of the financial services provider’s stock worth $49,000 after acquiring an additional 3,174 shares in the last quarter. Private Trust Co. NA lifted its holdings in shares of Goldman Sachs BDC by 1,471.7% in the 2nd quarter. Private Trust Co. NA now owns 5,045 shares of the financial services provider’s stock valued at $57,000 after purchasing an additional 4,724 shares during the last quarter. Finally, State of Alaska Department of Revenue acquired a new stake in shares of Goldman Sachs BDC in the 3rd quarter valued at about $51,000. 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.