Goldman Sachs Group Inc (GS) Shares Gap Down After Earnings Miss
Goldman Sachs Group Inc (NYSE:GS)’s share price gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $233.20, but opened at $226.26. Goldman Sachs Group shares last traded at $215.59, with a volume of 12,460,906 shares traded.
The investment management company reported $5.15 earnings per share for the quarter, missing the Zacks’ consensus estimate of $5.31 by $0.16. The company earned $8.03 billion during the quarter, compared to analyst estimates of $8.33 billion. Goldman Sachs Group had a net margin of 24.17% and a return on equity of 9.78%. The business’s revenue for the quarter was up 26.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.68 earnings per share.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 29th. Investors of record on Thursday, June 1st will be issued a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a yield of 1.39%. This is an increase from Goldman Sachs Group’s previous quarterly dividend of $0.65. Goldman Sachs Group’s dividend payout ratio is presently 15.89%.
GS has been the subject of a number of recent research reports. Royal Bank of Canada set a $250.00 price objective on Goldman Sachs Group and gave the company a “neutral” rating in a report on Tuesday. Macquarie upgraded Goldman Sachs Group from a “neutral” rating to an “outperform” rating and set a $245.00 price target for the company in a report on Wednesday, December 28th. Rafferty Capital Markets downgraded Goldman Sachs Group from a “buy” rating to a “hold” rating and decreased their price target for the stock from $288.00 to $221.00 in a report on Tuesday. Citigroup Inc reiterated a “sell” rating and set a $225.00 price target (up from $200.00) on shares of Goldman Sachs Group in a report on Tuesday, January 10th. They noted that the move was a valuation call. Finally, Credit Suisse Group AG reiterated a “buy” rating and set a $260.00 price target on shares of Goldman Sachs Group in a report on Wednesday, April 5th. Four equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and twelve have assigned a buy rating to the company. The company has a consensus rating of “Hold” and a consensus price target of $223.51.
In other Goldman Sachs Group news, EVP Edith W. Cooper sold 8,416 shares of Goldman Sachs Group stock in a transaction that occurred on Wednesday, January 25th. The shares were sold at an average price of $236.00, for a total transaction of $1,986,176.00. Following the transaction, the executive vice president now owns 41,966 shares of the company’s stock, valued at approximately $9,903,976. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director James A. /Dc/ Johnson sold 11,600 shares of Goldman Sachs Group stock in a transaction that occurred on Thursday, January 19th. The stock was sold at an average price of $233.99, for a total transaction of $2,714,284.00. Following the transaction, the director now directly owns 11,600 shares in the company, valued at approximately $2,714,284. The disclosure for this sale can be found here. In the last ninety days, insiders sold 128,590 shares of company stock worth $30,926,594. 2.61% of the stock is owned by insiders.
Several institutional investors have recently bought and sold shares of the company. Capital Investment Advisors LLC purchased a new position in Goldman Sachs Group during the first quarter valued at approximately $2,861,000. Farmers & Merchants Investments Inc. boosted its position in Goldman Sachs Group by 1.1% in the first quarter. Farmers & Merchants Investments Inc. now owns 9,341 shares of the investment management company’s stock valued at $2,146,000 after buying an additional 105 shares in the last quarter. Reilly Financial Advisors LLC boosted its position in Goldman Sachs Group by 2.0% in the first quarter. Reilly Financial Advisors LLC now owns 44,458 shares of the investment management company’s stock valued at $10,213,000 after buying an additional 887 shares in the last quarter. Beese Fulmer Investment Management Inc. boosted its position in Goldman Sachs Group by 1.2% in the first quarter. Beese Fulmer Investment Management Inc. now owns 17,696 shares of the investment management company’s stock valued at $4,065,000 after buying an additional 207 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC purchased a new position in Goldman Sachs Group during the first quarter valued at approximately $743,000. 72.77% of the stock is currently owned by hedge funds and other institutional investors.
The company has a 50-day moving average of $237.88 and a 200-day moving average of $222.05. The stock has a market cap of $89.43 billion, a PE ratio of 13.24 and a beta of 1.50. Goldman Sachs Group also saw some unusual options trading activity on Tuesday. Investors purchased 8,747 call options on the stock. This represents an increase of approximately 212% compared to the typical daily volume of 2,801 call options.
About Goldman Sachs Group
The Goldman Sachs Group, Inc is an investment banking, securities and investment management company that provides a range of financial services to corporations, financial institutions, governments and individuals. The Company operates in four business segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management.
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