Goldman Sachs BDC, Inc. (NYSE:GSBD) Sees Significant Increase in Short Interest

Goldman Sachs BDC, Inc. (NYSE:GSBD) was the recipient of a large increase in short interest in the month of December. As of December 31st, there was short interest totaling 2,133,906 shares, an increase of 26.1% from the December 15th total of 1,692,488 shares. Approximately 1.9% of the shares of the stock are sold short. Based on an average trading volume of 1,741,567 shares, the days-to-cover ratio is presently 1.2 days. Based on an average trading volume of 1,741,567 shares, the days-to-cover ratio is presently 1.2 days. Approximately 1.9% of the shares of the stock are sold short.

Goldman Sachs BDC Stock Down 1.3%

GSBD stock traded down $0.13 during mid-day trading on Monday, reaching $9.31. 965,032 shares of the company traded hands, compared to its average volume of 1,359,156. The firm’s 50 day moving average price is $9.62 and its 200 day moving average price is $10.45. Goldman Sachs BDC has a fifty-two week low of $8.92 and a fifty-two week high of $13.44. The stock has a market cap of $1.06 billion, a price-to-earnings ratio of 8.02 and a beta of 0.63. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 1.27.

Goldman Sachs BDC (NYSE:GSBD) last released its quarterly earnings results on Thursday, November 6th. The financial services provider reported $0.40 earnings per share for the quarter, topping the consensus estimate of $0.37 by $0.03. Goldman Sachs BDC had a net margin of 34.72% and a return on equity of 12.78%. The business had revenue of $91.60 million for the quarter, compared to analysts’ expectations of $88.16 million. As a group, equities research analysts predict that Goldman Sachs BDC will post 2.19 EPS for the current fiscal year.

Goldman Sachs BDC Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, January 27th. Investors of record on Wednesday, December 31st will be paid a $0.32 dividend. The ex-dividend date of this dividend is Wednesday, December 31st. This is a positive change from Goldman Sachs BDC’s previous quarterly dividend of $0.04. This represents a $1.28 annualized dividend and a dividend yield of 13.8%. Goldman Sachs BDC’s payout ratio is presently 110.34%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Kingstone Capital Partners Texas LLC purchased a new stake in shares of Goldman Sachs BDC during the 2nd quarter valued at about $97,711,000. Farther Finance Advisors LLC bought a new stake in Goldman Sachs BDC during the second quarter worth approximately $34,000. U.S. Capital Wealth Advisors LLC bought a new stake in shares of Goldman Sachs BDC during the second quarter worth $142,000. Norden Group LLC grew its holdings in Goldman Sachs BDC by 65.8% during the 2nd quarter. Norden Group LLC now owns 34,939 shares of the financial services provider’s stock worth $393,000 after acquiring an additional 13,872 shares in the last quarter. Finally, Investment Partners Asset Management Inc. boosted its stake in Goldman Sachs BDC by 3.8% in the second quarter. Investment Partners Asset Management Inc. now owns 106,141 shares of the financial services provider’s stock valued at $1,194,000 after acquiring an additional 3,841 shares in the last quarter. Institutional investors own 28.72% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms recently commented on GSBD. The Goldman Sachs Group started coverage on Goldman Sachs BDC in a research note on Monday, December 15th. They issued a “neutral” rating and a $10.50 price target for the company. Zacks Research raised shares of Goldman Sachs BDC from a “strong sell” rating to a “hold” rating in a report on Thursday, November 13th. Lucid Cap Mkts raised shares of Goldman Sachs BDC to a “hold” rating in a report on Monday, December 15th. Wells Fargo & Company reduced their price target on shares of Goldman Sachs BDC from $10.00 to $9.00 and set an “underweight” rating on the stock in a research report on Monday, November 10th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of Goldman Sachs BDC in a research note on Monday, December 29th. Three analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $9.75.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc (NYSE: GSBD) is an externally managed, closed-end, non-diversified management investment company organized as a business development company (BDC) under the U.S. Investment Company Act of 1940. The company’s primary objective is to generate current income and capital appreciation through debt and equity investments in U.S. middle-market companies. It principally invests in senior secured loans, mezzanine debt, preferred equity and, to a lesser extent, common equity, focusing on sponsor-backed transactions and special-situation financings.

The fund is advised by affiliates of Goldman Sachs Asset Management’s Private Credit Group, leveraging the firm’s global research capabilities and risk management infrastructure.