Goldman Sachs BDC (NYSE:GSBD)‘s stock had its “neutral” rating restated by stock analysts at National Securities in a research report issued on Monday. They presently have a $22.00 price target on the financial services provider’s stock. National Securities’ target price points to a potential upside of 8.37% from the stock’s previous close.
The analysts wrote, “• Goldman posted 4Q17 NII/share of $0.47, matching consensus but shy of our $0.50/share estimate. The primary reason for the miss was lower interest income than we had forecast despite respectable growth in the portfolio at cost. Given the very light repayment activity during 4Q17, it is likely the case that there was less acceleration of unamortized OID.
• NAV/share was down 1.2% on the year to $18.09 and GSBD posted an economic return of 8.6% for 2017. The company finished the year with only Kawa Solar Holdings on non-accrual status with a cost of $778,000. However, the company realized a loss of $25.1 million on previous non-accrual Bolttech Mannings, Inc. which was marked as having unrealized depreciation of $22.8 million as of 9/30/17.
• For the year, GSBD grew its portfolio at fair value by 9% to $1.27 billion from $1.17 billion. The company had $569.5 million of originations versus $464.3 million of sales and repayments. We expect the portfolio to grow steadily to $1.34 billion and $1.39 billion in 4Q18 and 4Q19, respectively.
• Goldman likely has some tailwinds to help offset spread compression, in our opinion. We think increased SCF (senior credit fund) utilization will assist with boosting yields as well as increased use of exemptive relief across the GSAM platform to provide larger borrowers certainty of closing. Additionally, we think the proprietary deal flow from the PWM (private wealth manager) channel will enable GSBD to command better pricing on the non-sponsor portion of the loan book.
• We are revising our 2018 NII/share estimate to $1.91 from $2.01 and are rolling out our 2019 NII/share estimate of $1.95.”
GSBD has been the topic of a number of other reports. Zacks Investment Research lowered shares of Goldman Sachs BDC from a “hold” rating to a “strong sell” rating in a research note on Wednesday, January 3rd. TheStreet lowered shares of Goldman Sachs BDC from a “b” rating to a “c+” rating in a research note on Monday, January 22nd. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and three have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average price target of $22.80.
Goldman Sachs BDC (NYSE:GSBD) last posted its earnings results on Thursday, February 22nd. The financial services provider reported $0.47 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.47. The business had revenue of $34.20 million for the quarter, compared to analyst estimates of $34.62 million. Goldman Sachs BDC had a net margin of 36.22% and a return on equity of 11.22%. During the same period in the prior year, the company posted $0.50 EPS. research analysts predict that Goldman Sachs BDC will post 1.94 earnings per share for the current year.
In related news, Director Jaime Ardila purchased 8,108 shares of the firm’s stock in a transaction that occurred on Friday, December 1st. The shares were purchased at an average cost of $21.84 per share, with a total value of $177,078.72. Following the purchase, the director now owns 12,791 shares of the company’s stock, valued at approximately $279,355.44. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.32% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in the business. Jane Street Group LLC acquired a new stake in Goldman Sachs BDC in the 4th quarter valued at about $225,000. Greenwich Investment Management Inc. raised its holdings in Goldman Sachs BDC by 20.7% in the 4th quarter. Greenwich Investment Management Inc. now owns 43,805 shares of the financial services provider’s stock valued at $971,000 after acquiring an additional 7,500 shares during the last quarter. MML Investors Services LLC acquired a new stake in Goldman Sachs BDC in the 4th quarter valued at about $268,000. BlackRock Inc. raised its holdings in Goldman Sachs BDC by 8.3% in the 4th quarter. BlackRock Inc. now owns 255,384 shares of the financial services provider’s stock valued at $5,664,000 after acquiring an additional 19,480 shares during the last quarter. Finally, Raymond James Financial Services Advisors Inc. raised its holdings in Goldman Sachs BDC by 41.9% in the 4th quarter. Raymond James Financial Services Advisors Inc. now owns 21,083 shares of the financial services provider’s stock valued at $468,000 after acquiring an additional 6,226 shares during the last quarter. Institutional investors own 35.34% of the company’s stock.
TRADEMARK VIOLATION WARNING: This news story was reported by Ticker Report and is the sole property of of Ticker Report. If you are accessing this news story on another website, it was illegally copied and reposted in violation of US and international trademark & copyright laws. The original version of this news story can be viewed at https://www.tickerreport.com/banking-finance/3222979/goldman-sachs-bdcs-gsbd-neutral-rating-reiterated-at-national-securities.html.
Goldman Sachs BDC Company Profile
Goldman Sachs BDC, Inc is a closed-end management investment company. The Company is a specialty finance company, which is focused on lending to middle-market companies. The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including first lien, including first lien, unitranche, including last out portions of such loans, and second lien debt, and unsecured debt, including mezzanine debt, as well as through select equity investments.
Receive News & Ratings for Goldman Sachs BDC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Goldman Sachs BDC and related companies with MarketBeat.com's FREE daily email newsletter.