The Goldman Sachs Group (NYSE:GS) Sets New 12-Month High – Still a Buy?

The Goldman Sachs Group, Inc. (NYSE:GS)’s share price hit a new 52-week high on Friday . The company traded as high as $1,098.36 and last traded at $1,064.7510, with a volume of 733091 shares changing hands. The stock had previously closed at $1,092.61.

The Goldman Sachs Group News Summary

Here are the key news stories impacting The Goldman Sachs Group this week:

• Positive Sentiment: Goldman Sachs was named, along with Morgan Stanley, as a lead underwriter on Anthropic’s expected IPO, reinforcing its role in major AI-related capital markets deals and supporting expectations for fee revenue. Anthropic said to pick Morgan Stanley and Goldman to lead IPO
• Positive Sentiment: Goldman also remains tied to other high-profile deals and market optimism, including its role in the SpaceX IPO process and bullish calls from analysts and commentators that highlight the firm’s influence in underwriting and research. Goldman Sachs expects SpaceX’s AI revenue to surge 100 times by 2030
• Positive Sentiment: Jim Cramer publicly said “We love Goldman,” which can help sentiment by reinforcing the idea that investors and media figures still view GS as a favored bank stock. Jim Cramer Says “We Love Goldman”
• Neutral Sentiment: Goldman’s CEO said AI may cause entry-level hiring to “contract a little,” but also noted the bank is still hiring interns at pre-COVID levels, making the message more about long-term workforce shifts than an immediate business setback. Goldman CEO says the bank’s entry-level hiring may ‘contract a little’ as AI changes the talent mix
• Neutral Sentiment: Several articles cite Goldman’s market views, including a strong year-end S&P 500 forecast and rate-cut expectations, which are more reflective of Goldman’s research outlook than of a direct change in GS fundamentals. Goldman Sachs delivers clear message on interest rate cuts
• Negative Sentiment: One headline featured Goldman’s top AI skeptic warning that AI companies need to prove near-term profitability, which may slightly temper enthusiasm around the AI boom that has been supporting parts of the firm’s deal pipeline. ‘At some point you’ve got to make money’: Goldman’s top AI skeptic warns the clock is running out ahead of OpenAI and Anthropic IPOs

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. Dbs Bank increased their price objective on shares of The Goldman Sachs Group from $890.00 to $1,050.00 in a research report on Thursday, May 7th. Weiss Ratings downgraded shares of The Goldman Sachs Group from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, May 8th. BNP Paribas Exane lowered their price objective on shares of The Goldman Sachs Group from $970.00 to $940.00 and set a “neutral” rating on the stock in a research report on Friday, April 24th. JPMorgan Chase & Co. restated a “neutral” rating on shares of The Goldman Sachs Group in a research report on Monday, April 13th. Finally, HSBC increased their price objective on shares of The Goldman Sachs Group from $729.00 to $765.00 in a research report on Monday, May 4th. Nine research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $943.95.

The Goldman Sachs Group Trading Down 3.7%

The firm has a market capitalization of $310.31 billion, a PE ratio of 19.22, a PEG ratio of 1.34 and a beta of 1.30. The company has a quick ratio of 0.63, a current ratio of 0.63 and a debt-to-equity ratio of 2.89. The stock’s fifty day simple moving average is $932.60 and its 200 day simple moving average is $899.87.

The Goldman Sachs Group (NYSE:GS) last announced its earnings results on Monday, April 13th. The investment management company reported $17.55 EPS for the quarter, beating analysts’ consensus estimates of $15.92 by $1.63. The Goldman Sachs Group had a net margin of 14.13% and a return on equity of 16.53%. The business had revenue of $17.23 billion during the quarter, compared to analysts’ expectations of $16.66 billion. During the same period in the prior year, the company earned $14.12 earnings per share. The firm’s revenue was up 14.4% on a year-over-year basis. On average, sell-side analysts predict that The Goldman Sachs Group, Inc. will post 59.53 earnings per share for the current year.

The Goldman Sachs Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 29th. Shareholders of record on Monday, June 1st will be issued a dividend of $4.50 per share. This represents a $18.00 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Monday, June 1st. The Goldman Sachs Group’s dividend payout ratio is currently 32.89%.

Insider Activity

In other news, insider Alex S. Golten sold 1,116 shares of the stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $936.18, for a total value of $1,044,776.88. Following the completion of the sale, the insider directly owned 2,578 shares of the company’s stock, valued at $2,413,472.04. This represents a 30.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Sheara J. Fredman sold 10,301 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $929.17, for a total transaction of $9,571,380.17. Following the completion of the sale, the chief accounting officer directly owned 6,338 shares of the company’s stock, valued at approximately $5,889,079.46. This trade represents a 61.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 33,681 shares of company stock valued at $31,737,875. 0.55% of the stock is currently owned by company insiders.

Institutional Trading of The Goldman Sachs Group

Hedge funds and other institutional investors have recently modified their holdings of the company. Stevens Capital Management LP bought a new position in The Goldman Sachs Group during the third quarter valued at $1,392,000. AlTi Global Inc. lifted its position in The Goldman Sachs Group by 87.3% during the third quarter. AlTi Global Inc. now owns 29,770 shares of the investment management company’s stock valued at $23,707,000 after purchasing an additional 13,879 shares during the last quarter. Wealthfront Advisers LLC lifted its position in The Goldman Sachs Group by 1.6% during the third quarter. Wealthfront Advisers LLC now owns 48,681 shares of the investment management company’s stock valued at $38,767,000 after purchasing an additional 780 shares during the last quarter. SHEPHERD WEALTH MANAGEMENT Ltd LIABILITY Co bought a new position in The Goldman Sachs Group during the third quarter valued at $3,083,000. Finally, Smartleaf Asset Management LLC lifted its position in The Goldman Sachs Group by 32.5% during the third quarter. Smartleaf Asset Management LLC now owns 4,829 shares of the investment management company’s stock valued at $3,884,000 after purchasing an additional 1,185 shares during the last quarter. 71.21% of the stock is owned by hedge funds and other institutional investors.

About The Goldman Sachs Group

The Goldman Sachs Group, Inc is a global investment banking and financial services firm headquartered in New York City. Founded in 1869 as a commercial paper business, the company has grown into a diversified financial institution that provides a broad range of services to corporations, financial institutions, governments and individuals. The firm is led by Chief Executive Officer David M. Solomon and operates across major financial centers worldwide.

Goldman Sachs’ core businesses include investment banking, global markets, asset and wealth management, and consumer banking.