Fintel reports that on September 7, 2023, HSBC initiated coverage of Goldman Sachs Group (NYSE:GS) with a Buy recommendation.

Analyst Price Forecast Suggests 21.86% Upside

As of August 31, 2023, the average one-year price target for Goldman Sachs Group is 391.34. The forecasts range from a low of 308.05 to a high of $484.05. The average price target represents an increase of 21.86% from its latest reported closing price of 321.13.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Goldman Sachs Group is 52,341MM, an increase of 19.62%. The projected annual non-GAAP EPS is 38.63.

Goldman Sachs Group Declares $2.75 Dividend

On July 19, 2023 the company declared a regular quarterly dividend of $2.75 per share ($11.00 annualized). Shareholders of record as of August 31, 2023 will receive the payment on September 28, 2023. Previously, the company paid $2.50 per share.

At the current share price of $321.13 / share, the stock’s dividend yield is 3.43%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.29%, the lowest has been 1.29%, and the highest has been 3.70%. The standard deviation of yields is 0.56 (n=236).

The current dividend yield is 2.05 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.43. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 1.20%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 2758 funds or institutions reporting positions in Goldman Sachs Group. This is a decrease of 95 owner(s) or 3.33% in the last quarter. Average portfolio weight of all funds dedicated to GS is 0.48%, a decrease of 20.41%. Total shares owned by institutions decreased in the last three months by 10.29% to 264,560K shares. The put/call ratio of GS is 1.27, indicating a bearish outlook.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 9,508K shares representing 2.74% ownership of the company. In it’s prior filing, the firm reported owning 9,518K shares, representing a decrease of 0.11%. The firm decreased its portfolio allocation in GS by 9.12% over the last quarter.

Capital World Investors holds 7,861K shares representing 2.27% ownership of the company. In it’s prior filing, the firm reported owning 9,790K shares, representing a decrease of 24.53%. The firm decreased its portfolio allocation in GS by 26.32% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 7,265K shares representing 2.09% ownership of the company. In it’s prior filing, the firm reported owning 7,250K shares, representing an increase of 0.19%. The firm decreased its portfolio allocation in GS by 10.52% over the last quarter.

Massachusetts Financial Services holds 6,517K shares representing 1.88% ownership of the company. In it’s prior filing, the firm reported owning 6,797K shares, representing a decrease of 4.30%. The firm decreased its portfolio allocation in GS by 8.95% over the last quarter.

Geode Capital Management holds 6,081K shares representing 1.75% ownership of the company. In it’s prior filing, the firm reported owning 6,070K shares, representing an increase of 0.18%. The firm decreased its portfolio allocation in GS by 10.66% over the last quarter.

Goldman Sachs Group Background Information
(This description is provided by the company.)

The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.

This article originally appeared on Fintel

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