Private Advisor Group LLC, a renowned financial services provider in the United States, has reportedly sold over 18% of its shares in Goldman Sachs BDC Inc (NYSE: GSBD). As per recent disclosures with the Securities and Exchange Commission (SEC), Private Advisor Group LLC owned 38,608 shares in the Goldman Sachs BDC at the end of last year’s fourth quarter, after selling 8,510 shares during the same period. The current market value of Private Advisor Group LLC’s holdings in Goldman Sachs BDC stood at $530,000.
Goldman Sachs BDC Inc primarily focuses on middle-market companies operating in various industries such as health technology information technology and software development. The company typically invests in businesses that have investments ranging between $25 million to $75 million and an EBITDA of approximately $5 million to $75 million.
The New York Stock Exchange-listed shares of GSBD opened at $13.50 recently, with a market capitalization worth nearly $1.48 billion. The company has shown strength through recent periods given its price-to-earnings ratio standing at 25.47 – consequently becoming a top choice for investors looking to tap into America’s SME ecosystem.
According to data points shared by GSBD during the recent disclosure events: “GSBD targets refinancing transactions comprising senior secured debt, unitranche debt, junior secured mezzanine debt and equity funding across various fields for growth or LBO funding requirements.”
It is noteworthy that GSBD was trading well above its fifty-two week low mark of around $13.28 but below its fifty-two week high mark of around $20.50.” While the current economic climate can remain complex given changing investment behavior patterns observed due to COVID-19,” experts agree that stocks like GSBD hold much promise even amid such volatile times going forward.
Goldman Sachs BDC Sees Major Investment from Hedge Funds and Institutional Investors
Goldman Sachs BDC Invests in Middle Market Companies, with Hedge Funds and Other Institutional Investors
Investors, including various hedge funds and other institutional investors, have bought and sold shares of Goldman Sachs BDC, an investment fund that targets middle market companies in the US. The company invests primarily in software, health technology information technology, commercial services and textiles fields with an investment size ranging between $25 to $75 million and EBITDA of $5 to $75 million. It provides financing through equity for acquisitions, refinancing, growth, LBOs or dividend recapitalization.
According to reports by Confluence Investment Management LLC, it lifted its holdings in Goldman Sachs BDC by 4.9% in the fourth quarter. Advisors Asset Management Inc., Kraematon Investment Advisors Inc., M Holdings Securities Inc. also followed suit in lifting their respective holdings by a significant margin during different quarters last year.
Despite the major investments being made into Goldman Sachs BDC by institutional investors and hedge funds alike over the past year, the target price for GPBD decreased from $15 to $14.50 on Monday as per Wells Fargo & Company’s report on February 27th.
As reported by StockNews.com on March 16th, five other analysts have given the stock a “hold” rating due to its performance over time since inception stating that Goldman Sachs BDC presents an average rating of “hold” and an average price target of $16.25 according to Bloomberg.com.
On February 23rd this year, the financial services provider had a net margin of 15.17% and reported revenue of $106.50 million compared to a consensus estimate of $102.02 million during unannounced earnings results for that quarter.
Goldman Sachs BDC will also pay quarterly dividends set at $0.45 per share on Thursday April 27th to investors with records on Friday March 31st, and it represents a dividend yield of 13.33%. Although the payout ratio is currently at 339.63%, analysts expect its EPS to continue its upward trend for this fiscal year.
Source: beststocks.com
