Goldman Sachs BDC (GSBD) Cut to “Hold” at Zacks Investment Research

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Zacks Investment Research downgraded shares of Goldman Sachs BDC (NYSE:GSBD) from a buy rating to a hold rating in a research note published on Wednesday morning.

According to Zacks, “Goldman Sachs BDC, Inc. is a specialty finance company. The Company invests primarily in telecommunication services, electronic equipment, instruments and components and real estate management and development industries. Goldman Sachs BDC, Inc. is based in NEW YORK, United States. “

GSBD has been the subject of a number of other reports. Wells Fargo & Co lowered their target price on Goldman Sachs BDC from $20.25 to $20.00 and set a market perform rating for the company in a research report on Thursday, October 4th. Citigroup assumed coverage on Goldman Sachs BDC in a research report on Thursday, August 23rd. They set a neutral rating and a $23.00 target price for the company. National Securities reiterated a buy rating and set a $23.00 target price on shares of Goldman Sachs BDC in a research report on Monday, August 6th. Finally, ValuEngine upgraded Goldman Sachs BDC from a sell rating to a hold rating in a research report on Friday, July 6th. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating, two have assigned a buy rating and two have given a strong buy rating to the stock. The company presently has a consensus rating of Hold and a consensus price target of $22.71.

GSBD traded up $0.09 during trading on Wednesday, reaching $20.72. 117,423 shares of the company traded hands, compared to its average volume of 120,506. The company has a debt-to-equity ratio of 0.69, a current ratio of 0.80 and a quick ratio of 0.80. Goldman Sachs BDC has a 12-month low of $18.78 and a 12-month high of $22.75. The firm has a market cap of $891.55 million, a P/E ratio of 10.01, a price-to-earnings-growth ratio of 5.59 and a beta of 0.79.

Goldman Sachs BDC (NYSE:GSBD) last posted its earnings results on Thursday, August 2nd. The financial services provider reported $0.50 EPS for the quarter, beating analysts’ consensus estimates of $0.47 by $0.03. The firm had revenue of $37.20 million during the quarter, compared to the consensus estimate of $36.04 million. Goldman Sachs BDC had a return on equity of 10.19% and a net margin of 46.91%. The company’s quarterly revenue was up 3.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.64 EPS. On average, sell-side analysts anticipate that Goldman Sachs BDC will post 1.99 earnings per share for the current year.

The company also recently announced a quarterly dividend, which will be paid on Monday, October 15th. Stockholders of record on Friday, September 28th will be given a dividend of $0.45 per share. The ex-dividend date of this dividend is Thursday, September 27th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 8.69%. Goldman Sachs BDC’s dividend payout ratio is currently 86.96%.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Stelac Advisory Services LLC bought a new stake in Goldman Sachs BDC in the second quarter worth $123,000. Great West Life Assurance Co. Can bought a new stake in Goldman Sachs BDC in the first quarter worth $204,000. US Bancorp DE bought a new stake in Goldman Sachs BDC in the second quarter worth $240,000. Cambridge Investment Research Advisors Inc. bought a new stake in Goldman Sachs BDC in the second quarter worth $247,000. Finally, Raymond James Financial Services Advisors Inc. bought a new stake in Goldman Sachs BDC in the second quarter worth $427,000. Hedge funds and other institutional investors own 34.27% of the company’s stock.

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.

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