The Goldman Sachs Group, Inc. (GS): Analyst Sentiment Positive Or Negative?

Analysts at BofA/Merrill cut their rating on shares of The Goldman Sachs Group, Inc. (NYSE:GS) from Buy to Neutral in their opinion released on November 30. Morgan Stanley analysts have downgraded their rating of GS stock from Overweight to Equal-Weight in a separate flash note to investors on November 21. Analysts at Societe Generale issued an upgrade from Sell to Hold for the stock, in a research note that dated back to July 18.

By watching the trading activity of corporate insiders, it will become easier to get a sense of The Goldman Sachs Group, Inc. (NYSE:GS)’s prospects. The earliest insider trade took place on 08/01/2018. Solomon David M parted with a total of 8.49 thousand shares of company at average share price of $237.92. The total for the sales was set at $2.02 million. After this transaction, the President and COO account balance stood at 222.63 thousand shares. The stock lost -23.4 percent since that insider sale. On 07/18/2018, Solomon David M, President and COO, sold 8.38 thousand shares at a price per share of $232.08. This removed 1.95 million shares from the insider’s fortune and the stock saw a -21.48 percent retreat in value since the news became public. This transaction left 222.63 thousand shares in the President and COO account. On 05/15/2018, President and COO Solomon David M performed a sale transaction worth $854.67 thousand. This sale at $244.4 each has eliminated 3.5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -25.43 percent decrease since the transaction was reported. The insider now is left with 222.63 thousand shares remaining in the account. Rogers John F.W., who performs the EVP-Chief of Staff & Secretary job, sold 4.4 thousand shares for $1.17 million. The disposal occurred on 02/23/2018 was priced at $265.37 per share. The share price plunged -31.33 percent since the reporting date. Rogers John F.W. now left with a stake of 89.38 thousand GS stock worth $16.45 million after the insider selling.

The Goldman Sachs Group, Inc. (GS) is expected to jump by 46.69 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $319-month high price target. This represents a whopping 73.28 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $270, which represents a return potential of 46.67 percent when compared to the closing price of the stock of $184.09 on Thursday, December 06. The lowest price target for the stock is $213 — slightly more than 15.7 percent from GS’s current share price.

The shares are currently floating around the first support level of $181.2. Below this, the next support is placed in the zone of $178.31. Till the time, the GS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 30.12 on daily chart, which may remain a cause for comfort. If the price breaks below $178.31 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $185.93 mark may result into a pull-back move towards $187.77 level.

GS shares dropped -0.22 points or -0.12 percent on Thursday to $184.09 with a heavy trade volume of 5.236 million shares. After opening the session at $181.33, the shares went as high as $184.88 and as low as $180.15, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $70 billion and now has 380.09 million shares outstanding. The Goldman Sachs Group, Inc. (GS) stock has lost -19.51 percent of market value in 21 trading days.

GS stock has a trailing 3-year beta of 1.13, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $25.01 a share in the trailing twelve months. The stock’s value has fallen -27.74 percent year to date (YTD) against a decline of -25.87 percent in 12 month’s time. The company’s shares still trade -33.13 percent away from its 1-year high of $275.31 and 0.25 percent up from 52-week low of $183.63. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of The Goldman Sachs Group, Inc. (GS) are trading at a P/E ratio of 7.74 times earnings reported for the past 12 months. The industry GS operates in has an average P/E of 33.26. Its P/E ratio went as low as 11.36X and as high as 14.84 over the 5-year span. Further, it is sporting a 1.37 on the Price-to-Sales ratio. Compare this with the industry average P/S of 4.78. 66.1 percent is the gross profit margin for The Goldman Sachs Group, Inc. and operating margin sits at 25.3 percent. Along with this, the net profit margin is 10.6 percent.

GS will be showing off its Q4 earnings on January 16. Analysts are forecasting revenue to climb 7.9 percent to $8.45B in the next fiscal quarter, while earnings are seen soaring by nearly 10.04 percent to $6.25 per share. History has shown that shares in The Goldman Sachs Group, Inc. have gone down on 24 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $6.28 per share, better than the $5.38, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $8.65B, better than the $8.38B analysts expected. Earnings are estimated to increase by 21.3 percent this year, 0.73 percent next year and continue to increase by 24.24 percent annually for the next 5 years.