Goldman Sachs BDC, Inc. (NYSE:GSBD) Stock Rating Reaffirmed by National Securities

Goldman Sachs BDC, Inc. (NYSE:GSBD)‘s stock had its “neutral” rating reissued by equities research analysts at National Securities in a research note issued on Monday, August 7th. They currently have a $22.00 target price on the financial services provider’s stock. National Securities’ price objective would indicate a potential upside of 0.82% from the stock’s previous close.

The analysts wrote, “• Goldman reported NII/share of $0.64, versus our estimate of $0.50 and the $0.45 quarterly dividend. Total repayments for the quarter totaled $167.8 million, the highest amount since GSBD went public. The combined accelerated OID accretion and prepayment fees served to significantly boost investment income during the quarter. We expect prepayments and thus fees and OID acceleration will normalize in 3Q17 although we still anticipate NII to be well in excess of the quarterly dividend.

• GSBD had heavy realized losses of $38.1 million for the quarter largely pertaining to previous non-accruals Washington Inventory Services and Iracore International Holdings being restructured. These two non-accruals combined had unrealized losses of $32.4 million as of 3/31/17. Additionally, Kawa Solar Holdings was placed on non-accrual with a cost of $6.7 million. The out-earned dividend courtesy of prepayments combined with a 2Q17 equity offering completed at a 23% premium to 1Q17 NAV/share served to offset the realized losses and resulted in NAV/share only being down $0.03 Q/Q.

• We are revising our 2017 NII/share estimate to $2.10 from $1.98 and our 2018 NII/share estimate to $2.03 from $2.07.”

Several other research firms also recently issued reports on GSBD. Zacks Investment Research upgraded shares of Goldman Sachs BDC from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 3rd. BidaskClub downgraded shares of Goldman Sachs BDC from a “buy” rating to a “hold” rating in a research note on Sunday, July 16th. TheStreet downgraded shares of Goldman Sachs BDC from a “b-” rating to a “c” rating in a research note on Tuesday, June 13th. Raymond James Financial, Inc. upgraded shares of Goldman Sachs BDC from a “market perform” rating to an “outperform” rating in a research note on Friday, May 26th. Finally, Goldman Sachs Group, Inc. (The) upgraded shares of Goldman Sachs BDC from a “market perform” rating to an “outperform” rating in a research note on Friday, May 26th. They noted that the move was a valuation call. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and three have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average target price of $22.65.

Goldman Sachs BDC (GSBD) traded down 2.06% during trading on Monday, hitting $21.82. 321,914 shares of the company were exchanged. Goldman Sachs BDC has a 12 month low of $20.00 and a 12 month high of $25.60. The company has a 50-day moving average of $22.54 and a 200-day moving average of $23.66.

Goldman Sachs BDC (NYSE:GSBD) last released its quarterly earnings data on Thursday, August 3rd. The financial services provider reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.49 by $0.15. Goldman Sachs BDC had a net margin of 35.73% and a return on equity of 11.54%. The company had revenue of $36 million during the quarter, compared to the consensus estimate of $33.66 million. During the same period in the previous year, the firm earned $0.49 earnings per share. Goldman Sachs BDC’s revenue for the quarter was up 11.8% on a year-over-year basis. Analysts forecast that Goldman Sachs BDC will post $2.07 EPS for the current year.

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In related news, Director Ross Jay Kari acquired 5,000 shares of Goldman Sachs BDC stock in a transaction on Tuesday, May 23rd. The shares were purchased at an average cost of $22.24 per share, for a total transaction of $111,200.00. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Ann B. Lane acquired 2,240 shares of Goldman Sachs BDC stock in a transaction on Thursday, June 8th. The shares were bought at an average price of $22.32 per share, for a total transaction of $49,996.80. Following the completion of the purchase, the director now directly owns 2,240 shares in the company, valued at $49,996.80. The disclosure for this purchase can be found here. Corporate insiders own 0.32% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of GSBD. Raymond James Financial Services Advisors Inc. boosted its stake in shares of Goldman Sachs BDC by 35.3% in the second quarter. Raymond James Financial Services Advisors Inc. now owns 21,339 shares of the financial services provider’s stock worth $481,000 after buying an additional 5,572 shares during the period. Royal Bank of Canada boosted its stake in shares of Goldman Sachs BDC by 1.8% in the second quarter. Royal Bank of Canada now owns 79,661 shares of the financial services provider’s stock worth $1,794,000 after buying an additional 1,400 shares during the period. Stifel Financial Corp boosted its stake in shares of Goldman Sachs BDC by 32.2% in the second quarter. Stifel Financial Corp now owns 25,640 shares of the financial services provider’s stock worth $584,000 after buying an additional 6,240 shares during the period. Muzinich & Co. Inc. boosted its stake in shares of Goldman Sachs BDC by 10.1% in the second quarter. Muzinich & Co. Inc. now owns 1,437,363 shares of the financial services provider’s stock worth $32,369,000 after buying an additional 131,366 shares during the period. Finally, Pinebridge Investments L.P. boosted its stake in shares of Goldman Sachs BDC by 0.4% in the second quarter. Pinebridge Investments L.P. now owns 9,946 shares of the financial services provider’s stock worth $224,000 after buying an additional 37 shares during the period. Hedge funds and other institutional investors own 36.73% of the company’s stock.

About Goldman Sachs BDC

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.

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