Goldman Sachs BDC’s (GSBD) “Neutral” Rating Reaffirmed at National Securities
National Securities reaffirmed their neutral rating on shares of Goldman Sachs BDC, Inc. (NYSE:GSBD) in a research note released on Monday morning. National Securities currently has a $22.00 price objective on the financial services provider’s stock.
“• Goldman reported NII/share of $0.64, versus our estimate of $0.50 and the $0.45 quarterly dividend. Total repayments for the quarter totaled $167.8 million, the highest amount since GSBD went public. The combined accelerated OID accretion and prepayment fees served to significantly boost investment income during the quarter. We expect prepayments and thus fees and OID acceleration will normalize in 3Q17 although we still anticipate NII to be well in excess of the quarterly dividend.
• GSBD had heavy realized losses of $38.1 million for the quarter largely pertaining to previous non-accruals Washington Inventory Services and Iracore International Holdings being restructured. These two non-accruals combined had unrealized losses of $32.4 million as of 3/31/17. Additionally, Kawa Solar Holdings was placed on non-accrual with a cost of $6.7 million. The out-earned dividend courtesy of prepayments combined with a 2Q17 equity offering completed at a 23% premium to 1Q17 NAV/share served to offset the realized losses and resulted in NAV/share only being down $0.03 Q/Q.
• We are revising our 2017 NII/share estimate to $2.10 from $1.98 and our 2018 NII/share estimate to $2.03 from $2.07.,” National Securities’ analyst wrote.
GSBD has been the topic of several other reports. TheStreet downgraded shares of Goldman Sachs BDC from a b- rating to a c rating in a report on Tuesday, June 13th. BidaskClub downgraded shares of Goldman Sachs BDC from a buy rating to a hold rating in a report on Sunday, July 16th. Zacks Investment Research downgraded shares of Goldman Sachs BDC from a hold rating to a sell rating in a report on Monday, July 17th. Raymond James Financial, Inc. raised shares of Goldman Sachs BDC from a market perform rating to an outperform rating in a report on Friday, May 26th. Finally, Goldman Sachs Group, Inc. (The) raised shares of Goldman Sachs BDC from a market perform rating to an outperform rating in a report on Friday, May 26th. They noted that the move was a valuation call. Two research analysts have rated the stock with a sell rating, five have given a hold rating and three have issued a buy rating to the company’s stock. Goldman Sachs BDC has a consensus rating of Hold and an average price target of $22.65.
Goldman Sachs BDC (NYSE GSBD) traded up 2.08% on Monday, reaching $23.11. 58,283 shares of the company’s stock traded hands. Goldman Sachs BDC has a 12-month low of $19.98 and a 12-month high of $25.60. The stock has a 50 day moving average price of $22.62 and a 200 day moving average price of $23.74.
Goldman Sachs BDC (NYSE:GSBD) last released its quarterly earnings data on Thursday, August 3rd. The financial services provider reported $0.64 EPS for the quarter, beating the consensus estimate of $0.49 by $0.15. The business had revenue of $36 million for the quarter, compared to the consensus estimate of $33.66 million. Goldman Sachs BDC had a net margin of 35.73% and a return on equity of 11.81%. The business’s revenue for the quarter was up 11.8% on a year-over-year basis. During the same period in the prior year, the firm earned $0.49 EPS. On average, equities analysts predict that Goldman Sachs BDC will post $2.04 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Monday, October 16th. Investors of record on Friday, September 29th will be issued a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 7.95%. The ex-dividend date of this dividend is Thursday, September 28th. Goldman Sachs BDC’s dividend payout ratio (DPR) is presently 139.54%.
In other news, Director Ross Jay Kari purchased 5,000 shares of the stock in a transaction that occurred on Tuesday, May 23rd. The shares were purchased at an average cost of $22.24 per share, with a total value of $111,200.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Ann B. Lane purchased 2,240 shares of the stock in a transaction that occurred on Thursday, June 8th. The shares were purchased at an average cost of $22.32 per share, for a total transaction of $49,996.80. Following the completion of the acquisition, the director now directly owns 2,240 shares of the company’s stock, valued at approximately $49,996.80. The disclosure for this purchase can be found here. Corporate insiders own 0.32% of the company’s stock.
A number of hedge funds have recently made changes to their positions in GSBD. IFP Advisors Inc raised its position in Goldman Sachs BDC by 4.9% in the second quarter. IFP Advisors Inc now owns 4,553 shares of the financial services provider’s stock worth $103,000 after buying an additional 211 shares during the period. Global X Management Co. LLC raised its position in Goldman Sachs BDC by 49.7% in the first quarter. Global X Management Co. LLC now owns 5,698 shares of the financial services provider’s stock worth $140,000 after buying an additional 1,892 shares during the period. US Bancorp DE purchased a new position in Goldman Sachs BDC during the second quarter worth approximately $142,000. Regal Investment Advisors LLC purchased a new position in Goldman Sachs BDC during the first quarter worth approximately $202,000. Finally, Palisade Capital Management LLC NJ purchased a new position in Goldman Sachs BDC during the second quarter worth approximately $203,000. 36.91% of the stock is currently owned by hedge funds and other institutional investors.
About Goldman Sachs BDC
Goldman Sachs BDC, Inc is a closed-end management investment company. The Company is a specialty finance company, which is focused on lending to middle-market companies. The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including first lien, including first lien, unitranche, including last out portions of such loans, and second lien debt, and unsecured debt, including mezzanine debt, as well as through select equity investments.
Receive News & Stock Ratings for Goldman Sachs BDC Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Goldman Sachs BDC Inc. and related stocks with our FREE daily email newsletter.