Goldman Sachs Group (GS) Lowered to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Goldman Sachs Group (NYSE:GS) from a hold rating to a sell rating in a report published on Tuesday.

According to Zacks, “Shares of Goldman have underperformed the industry over the past three months. Further, earnings estimates have been revised downward lately, ahead of the company's fourth quarter 2018 results. 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. Also, its focus on digitization initiatives bode well for long-term. Nevertheless, declining revenues from Institutional Client Services division remain hindrance to the bottom-line expansion. Notably, Goldman has been entangled in the recent heightened scandal related to the multibillion-dollar 1Malaysia Development Bhd (1MDB), which is a major concern.”

GS has been the topic of a number of other reports. Wells Fargo & Co reaffirmed a buy rating on shares of Goldman Sachs Group in a research note on Thursday, September 20th. JPMorgan Chase & Co. reaffirmed a buy rating and issued a $285.00 price objective on shares of Goldman Sachs Group in a research note on Monday, September 10th. Wolfe Research assumed coverage on shares of Goldman Sachs Group in a research note on Tuesday, September 25th. They issued an outperform rating on the stock. BMO Capital Markets raised their price objective on shares of Goldman Sachs Group from $261.00 to $276.00 and gave the company a market perform rating in a research note on Wednesday, October 17th. They noted that the move was a valuation call. Finally, ValuEngine cut shares of Goldman Sachs Group from a sell rating to a strong sell rating in a research note on Thursday, November 15th. Three analysts have rated the stock with a sell rating, nine have issued a hold rating and six have assigned a buy rating to the company’s stock. The company presently has an average rating of Hold and an average price target of $258.31.

Shares of Goldman Sachs Group stock opened at $176.93 on Tuesday. The company has a debt-to-equity ratio of 3.04, a current ratio of 0.90 and a quick ratio of 0.90. The company has a market capitalization of $65.64 billion, a P/E ratio of 8.95, a P/E/G ratio of 0.59 and a beta of 1.13. Goldman Sachs Group has a fifty-two week low of $151.70 and a fifty-two week 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 analysts’ consensus estimates of $5.38 by $0.90. The business had revenue of $8.65 billion during the quarter, compared to analyst estimates of $8.43 billion. Goldman Sachs Group had a net margin of 16.68% and a return on equity of 14.10%. Goldman Sachs Group’s revenue for the quarter was up 3.8% compared to the same quarter last year. During the same quarter last year, the business posted $5.02 earnings per share. Equities analysts predict that Goldman Sachs Group will post 24.61 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Friday, December 28th. Stockholders of record on Friday, November 30th were given a dividend of $0.80 per share. The ex-dividend date of this dividend was Thursday, November 29th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 1.81%. Goldman Sachs Group’s dividend payout ratio is 16.19%.

In other news, VP Gregory K. Palm sold 16,451 shares of Goldman Sachs Group stock in a transaction on Thursday, December 27th. The shares were sold at an average price of $158.41, for a total transaction of $2,606,002.91. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 1.71% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Edge Wealth Management LLC boosted its position in shares of Goldman Sachs Group by 686.6% during the fourth quarter. Edge Wealth Management LLC now owns 2,281 shares of the investment management company’s stock worth $381,000 after purchasing an additional 1,991 shares in the last quarter. YHB Investment Advisors Inc. raised its holdings in shares of Goldman Sachs Group by 33.5% during the fourth quarter. YHB Investment Advisors Inc. now owns 18,208 shares of the investment management company’s stock worth $3,042,000 after acquiring an additional 4,569 shares during the period. Cornerstone Investment Partners LLC raised its holdings in shares of Goldman Sachs Group by 3.5% during the fourth quarter. Cornerstone Investment Partners LLC now owns 228,926 shares of the investment management company’s stock worth $38,242,000 after acquiring an additional 7,817 shares during the period. Atalanta Sosnoff Capital LLC raised its holdings in shares of Goldman Sachs Group by 14.3% during the fourth quarter. Atalanta Sosnoff Capital LLC now owns 4,000 shares of the investment management company’s stock worth $668,000 after acquiring an additional 500 shares during the period. Finally, Lenox Wealth Advisors LLC raised its holdings in shares of Goldman Sachs Group by 592.0% during the fourth quarter. Lenox Wealth Advisors LLC now owns 346 shares of the investment management company’s stock worth $58,000 after acquiring an additional 296 shares during the period. 70.83% of the stock is currently owned by institutional investors.

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.

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