Zacks Investment Research Downgrades Goldman Sachs Group (GS) to Hold

Goldman Sachs Group (NYSE:GS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Friday.

According to Zacks, “Shares of Goldman have underperformed the industry over the past three months. Yet, the company boasts an impressive earnings surprise history, surpassing the Zacks Consensus Estimate in all the trailing four quarters.  The company’s well-diversified business and focus to capitalize on growth opportunities through strategic moves along with cost-control efforts will continue to strengthen the overall business. Notably, Goldman has been entangled in the recent heightened scandal related to the multibillion-dollar 1Malaysia Development Bhd (1MDB), which is a major concern. 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.”

Other equities analysts have also issued research reports about the stock. Wells Fargo & Co reaffirmed a “buy” rating on shares of Goldman Sachs Group in a research report on Thursday, September 20th. JPMorgan Chase & Co. reaffirmed a “buy” rating and set a $285.00 target price on shares of Goldman Sachs Group in a research report on Monday, September 10th. Morgan Stanley lowered shares of Goldman Sachs Group from an “overweight” rating to an “equal weight” rating and set a $226.00 target price on the stock. in a research report on Wednesday, November 21st. BMO Capital Markets boosted their target price on shares of Goldman Sachs Group from $261.00 to $276.00 and gave the stock a “market perform” rating in a research report on Wednesday, October 17th. They noted that the move was a valuation call. Finally, Bank of America downgraded shares of Goldman Sachs Group from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $280.00 to $225.00 in a research note on Friday. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating and eight have issued a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus price target of $269.84.

NYSE:GS opened at $190.69 on Friday. Goldman Sachs Group has a 12 month low of $188.12 and a 12 month high of $275.31. The company has a market capitalization of $72.48 billion, a PE ratio of 9.65, a PEG ratio of 0.64 and a beta of 1.15. The company has a debt-to-equity ratio of 3.04, a quick ratio of 0.90 and a current ratio of 0.90.

Goldman Sachs Group (NYSE:GS) last announced its earnings results on Tuesday, October 16th. The investment management company reported $6.28 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $5.38 by $0.90. Goldman Sachs Group had a net margin of 16.68% and a return on equity of 14.10%. The business had revenue of $8.65 billion for the quarter, compared to analyst estimates of $8.43 billion. During the same quarter in the previous year, the firm posted $5.02 earnings per share. Goldman Sachs Group’s revenue was up 3.8% compared to the same quarter last year. Analysts predict that Goldman Sachs Group will post 25.33 earnings per share for the current fiscal year.

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Prio Wealth Limited Partnership boosted its stake in shares of Goldman Sachs Group by 3.5% in the 3rd quarter. Prio Wealth Limited Partnership now owns 127,554 shares of the investment management company’s stock valued at $28,602,000 after purchasing an additional 4,344 shares in the last quarter. Dubuque Bank & Trust Co. boosted its stake in shares of Goldman Sachs Group by 935.0% in the 3rd quarter. Dubuque Bank & Trust Co. now owns 18,703 shares of the investment management company’s stock valued at $4,194,000 after purchasing an additional 16,896 shares in the last quarter. Virtu Financial LLC boosted its stake in shares of Goldman Sachs Group by 72.0% in the 3rd quarter. Virtu Financial LLC now owns 12,537 shares of the investment management company’s stock valued at $1,317,725,000 after purchasing an additional 5,248 shares in the last quarter. Smithbridge Asset Management Inc. DE boosted its stake in shares of Goldman Sachs Group by 15.6% in the 3rd quarter. Smithbridge Asset Management Inc. DE now owns 10,191 shares of the investment management company’s stock valued at $2,285,000 after purchasing an additional 1,375 shares in the last quarter. Finally, Commerzbank Aktiengesellschaft FI boosted its stake in shares of Goldman Sachs Group by 6.3% in the 2nd quarter. Commerzbank Aktiengesellschaft FI now owns 110,521 shares of the investment management company’s stock valued at $24,378,000 after purchasing an additional 6,535 shares in the last quarter. Hedge funds and other institutional investors own 71.18% of the company’s stock.

About Goldman Sachs Group

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.

Featured Article: Price to Earnings Ratio (PE) Basics

Get a free copy of the Zacks research report on Goldman Sachs Group (GS)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Goldman Sachs Group (NYSE:GS)

Receive News & Ratings for Goldman Sachs Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Goldman Sachs Group and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on reddit