Goldman Sachs Group (GS) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of Goldman Sachs Group (NYSE:GS) from a buy rating to a hold rating in a report issued on Wednesday morning.

According to Zacks, “Shares of Goldman have outperformed the industry over the past six months. Also, the company boasts an impressive earnings surprise history, surpassing the Zacks Consensus Estimate in all the trailing four quarters. Third-quarter 2018 results reflected continued momentum in investment banking. However, lower FICC revenues and elevated expenses were on the downside. The company’s well-diversified business and focus to capitalize on growth opportunities through strategic moves will continue to strengthen the overall business. While declining revenues from Institutional Client Services division remain hindrance to the bottom-line expansion, the launching of its online retail bank, Marcus with an aim to enter Britain’s cash savings account market will support growth. Nevertheless, Goldman has been entangled in the recent heightened scandal related to the multibillion-dollar 1Malaysia Development Bhd (1MDB), which is a major concern.”

Other equities research analysts have also issued research reports about the company. JPMorgan Chase & Co. restated a buy rating and set a $285.00 target price on shares of Goldman Sachs Group in a research report on Monday, September 10th. Credit Suisse Group upgraded Goldman Sachs Group from a neutral rating to an outperform rating in a research report on Tuesday, July 17th. Keefe, Bruyette & Woods cut their target price on Goldman Sachs Group from $260.00 to $255.00 and set a hold rating on the stock in a research report on Wednesday, July 18th. Wolfe Research started coverage on Goldman Sachs Group in a research report on Tuesday, September 25th. They set an outperform rating on the stock. Finally, Oppenheimer upped their target price on Goldman Sachs Group from $304.00 to $335.00 and gave the company an outperform rating in a research report on Wednesday, July 18th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and ten have issued a buy rating to the stock. The stock has an average rating of Hold and an average target price of $281.21.

Shares of GS stock traded up $1.25 on Wednesday, hitting $203.74. The company had a trading volume of 4,258,667 shares, compared to its average volume of 3,215,536. The stock has a market cap of $76.65 billion, a price-to-earnings ratio of 10.31, a PEG ratio of 0.67 and a beta of 1.15. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 3.04. Goldman Sachs Group has a twelve month low of $198.44 and a twelve month high of $275.31.

Goldman Sachs Group (NYSE:GS) last issued its quarterly earnings results on Tuesday, October 16th. The investment management company reported $6.28 earnings per share for the quarter, beating the consensus estimate of $5.38 by $0.90. The company had revenue of $8.65 billion during the quarter, compared to analysts’ expectations of $8.43 billion. Goldman Sachs Group had a return on equity of 14.10% and a net margin of 16.68%. The business’s quarterly revenue was up 3.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $5.02 earnings per share. Sell-side analysts forecast that Goldman Sachs Group will post 25.32 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, December 28th. Shareholders of record on Friday, November 30th will be issued a $0.80 dividend. The ex-dividend date is Thursday, November 29th. This represents a $3.20 annualized dividend and a yield of 1.57%. Goldman Sachs Group’s payout ratio is currently 16.19%.

Large investors have recently made changes to their positions in the business. Prio Wealth Limited Partnership boosted its holdings in Goldman Sachs Group by 3.5% in the third quarter. Prio Wealth Limited Partnership now owns 127,554 shares of the investment management company’s stock worth $28,602,000 after acquiring an additional 4,344 shares in the last quarter. Commerzbank Aktiengesellschaft FI raised its stake in shares of Goldman Sachs Group by 6.3% in the second quarter. Commerzbank Aktiengesellschaft FI now owns 110,521 shares of the investment management company’s stock worth $24,378,000 after purchasing an additional 6,535 shares during the last quarter. Exane Asset Management purchased a new stake in shares of Goldman Sachs Group in the second quarter worth approximately $207,000. Macquarie Group Ltd. raised its stake in shares of Goldman Sachs Group by 3.2% in the second quarter. Macquarie Group Ltd. now owns 92,279 shares of the investment management company’s stock worth $20,353,000 after purchasing an additional 2,848 shares during the last quarter. Finally, Smithbridge Asset Management Inc. DE raised its stake in shares of Goldman Sachs Group by 15.6% in the third quarter. Smithbridge Asset Management Inc. DE now owns 10,191 shares of the investment management company’s stock worth $2,285,000 after purchasing an additional 1,375 shares during the last quarter. Institutional investors and hedge funds own 72.51% of the company’s stock.

Goldman Sachs Group Company Profile

The Goldman Sachs Group, Inc operates as an investment banking, securities, and investment management company worldwide. It operates through four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, spin-offs, and risk management; and underwriting services, such as debt and equity underwriting of public offerings and private placements of various securities and other financial instruments, as well as derivative transactions with public and private sector clients.

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