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Goldman Sachs offers employees an extra 10 days of family leave to cope with coronavirus
By: MarketWatch | April 1, 2020
The move from Goldman Sachs may put pressure on other firms to do the same
Goldman Sachs has offered its employees worldwide an extra 10 days of leave to help them care for children or elderly relatives affected by the coronavirus.
The US bank told employees last night that they were entitled to the extra time off to handle the “unique personal circumstances related to the profound impact of Covid-19”.
Bentley de Beyer, who took over as head of human capital management at Goldman in January, sent a memo to staff telling them about the additional leave. Schools have been closed as a result of the pandemic, placing additional strain on parents, and older people are more susceptible to severe cases of the respiratory disease.
“To support employees, we will now offer 10 days of family leave to our people globally to care for family members, as needed, due to Covid-19-related illness or childcare needs, including homeschooling,” de Beyer wrote in the memo.
The move may put pressure on other firms to follow suit, starting with Goldman’s Wall Street peers and rivals. Last year, Goldman was one of a number of financial firms to start offering generous parental leave and fertility benefits, as a trend toward new family-friendly policies took hold in the industry.
Also during 2019, improved parental leave policies were introduced at US insurer MassMutual and UK asset manager Standard Life Aberdeen. However, most of Goldman’s Wall Street rivals have not yet met its bar on time off for childcare, according to statistics compiled by Bloomberg.
Rachel Suff, senior employment relations adviser at the CIPD, the professional body for HR and people development, said: “It’s very encouraging to see a large company like Goldman Sachs offering additional paid family leave to its staff where they have caring responsibilities during this pandemic. Many people’s domestic lives are deeply affected by the virus, making it much harder for them to juggle work and family obligations.
“A lot of people will have financial worries if they are forced to take unpaid leave to care for dependents, although it’s true that many businsses don’t have limitless funds to provide extra paid leave. Where it is possible to be flexible and grant extra paid leave, however, employers will reap considerable benefits in terms of staff loyalty and engagement.”
Richard Fox, an employment partner at law firm Kingsley Napley, said he was “not surprised” by Goldman’s move and “in many ways I would applaud it”. He added: “I suspect Goldmans are also being realistic. Anyone caught up in this scenario is going to have to move very quickly to make arrangements and devote time to sort it out... Goldmans’ employees may not be able to rely upon their usual, or indeed any support networks (paid or unpaid) as may have been possible in more ‘ordinary’ circumstances.”
He added that in the current crisis, it is unlikely that any bank would prevent staff taking the time they needed to cope with personal issues related to the virus.
He said: “As the banks got such a drubbing reputationally after the last financial crisis, one would think this new policy will not do them any harm moving forward. They do not want to be seen (again) on the wrong side of history after this crisis is over.”
In Goldman’s memo, de Beyer wrote: “We recognise our people are dealing with unique personal circumstances related to the profound impact of Covid-19, whether it be protecting their health, caring for a child whose school or daycare services are unavailable, adjusting to a new routine, tending to an ill or elderly family member, or managing feelings of isolation that can come from physical distancing.”
The extra 10 days of leave apply “for 2020”, she added, and come “in addition to the firm’s many other benefits and wellness offerings, including other leave programs, that can add relief to employees during this period.”
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Because if anyone knows what's happening, it's Goldman Sachs.....
Meanwhile ;
Simply a couple of points of reference........Zones to keep an eye on.
Goldman Sachs, Wells Fargo Upgraded to Hold by Berenberg
By: TheStreet | March 26, 2020
• Berenberg is bearish on the banking sector but Wells Fargo and Goldman Sachs were upgraded to hold at the firm.
The banking sector is in bad shape as economic uncertainty and the economic fallout from the coronavirus pandemic has crippled the U.S. economy, but Berenberg upgraded Goldman Sachs GS and Wells Fargo WFC to hold from sell. Investors are still examining what is in the stimulus package and how it will help each sector.
Berenberg is still bearish on the banking sector, reducing its price targets in its coverage universe by 33% on average, but there is still material upside for those two banking giants.
Berenberg notes that the banking industry is in a structural decline and that it is operating in an environment where its two traditional strengths (risk management and return focus) are being neutralized by increased activity from the world's central banks. TheStreet's Bret Kenwell recently examined Bank of America BAC and JP Morgan Chase JPM and provided technical analysis on each to provide investing advice.
"While Wells Fargo continues to face strategic risks and uncertainty, we believe these are now better reflected in the share price, trading on 8.3x our 2021E EPS. Moreover, we are mindful that Wells Fargo has the capacity to target meaningful cost savings in order to protect and improve profitability," Berenberg analyst Adam Barrass said.
Meanwhile, Goldman Sachs is also undervalued, according to Berenberg's metrics, as the company is trading at less than 2x forward revenue estimates, a 15% discount to its long-term average.
"At its investor day in January 2020, Goldman Sachs identified USD1.3bn of non-compensation cost savings which it expects to achieve over the next three years. It could accelerate this cost reduction if the operating environment remains challenging," Barrass wrote.
Berenberg did cut its price target on the investment bank to $160 from $190, implying a 7% upside from the stock's previous closing price. Earlier this month, Banks did cut stock buybacks to preserve capital amid the coronavirus outbreak.
Goldman Sachs shares rose 5.5% to $163.61 while Wells Fargo gained 5% to $30.45.
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is a right choice:: The Goldman Sachs Group, Inc., (NYSE: GS)
By: NyseStockAlerts | March 26, 2020
On Wednesday Shares of The Goldman Sachs Group, Inc., (NYSE: GS) generated a change of 1.00% and closed at $155.13
EPS growth is a significant number as it suggests the performance of a company. It is generally exposed as a percentage and is then referred to as the E-P-S growth rate. Growth in E-P-S is an essential measure of administration performance because it shows how much money the company is making for its investors or stakeholders, just not changes in profit but also after-effects of issuance of new shares (this is especially important when the growth comes as a result of acquisition).
The Goldman Sachs Group, Inc., NYSE: GS):
The Goldman Sachs Group, Inc., belongs to the Financial sector and Investment Brokerage – National industry. The company’s Market capitalization is 56.20B with the total Outstanding Shares of «Outstanding». GS stock construct a change of 1.00 in a total of its share price and finished its trading at 155.13.
The Goldman Sachs Group, Inc. institutional ownership is held at 76.60% while insider ownership was 0.40%. As of now, GS has a P/S, P/E and P/B values of 1.02, 7.39 and 0.71 respectively. Its P/Cash is valued at 0.42.
The stock has observed its SMA50, which is now -27.57%. In looking at the SMA 200, we see that the stock has seen a -27.12%..
Profitability ratios:
Looking into the profitability ratios of GS stock, an investor will find its ROE, ROA, ROI standing at 9.90%, 0.80% and 1.30%, respectively.
Earnings per Share Details of The Goldman Sachs Group, Inc.:
The E-P-S of GS is strolling at 21.00, counting Earning per Share growth this year at -12.40%. As a result, the company has an earning per share growth of 13.86% for the next year.
Given the importance of recognizing companies that will make sure earnings per share at a high value, we later obsession to umpire how to recognize which companies will get high amassing standards. One major show off to recognize high annual net index count combined of all companies, which are to mention the companies that have demonstrated such build up beyond the p.s. 5 to 10 years.
We can’t have too much stability the once will always reflect the difficulty, but practically United State stock exchange which has grown earnings per allowance sharply in the after are an excellent results makes a continuing effect is a finding of continues struggle.
Analyst’s mean target price(TP) for the company is 254.48 while analysts mean suggestion is 2.30.
A beta(B) factor is used to measure the volatility of the stock. The stock remained 9.94% volatile for the week and 7.90% for the month.
Historical Performance Of GS In The News:
Taking a look at the performance of The Goldman Sachs Group, Inc. stock, a stockholder knows that the weekly performance for this stock is valued at 10.79%, resulting in a performance for the month at -28.71%.
Therefore, the stated figure shows a four-month performance of -32.28%, bringing the 6-month working result to -25.33% and YTD performance of -32.53%. As of now, The Goldman Sachs Group, Inc. has a P/S, P/E and P/B values of 1.02, and 0.71 respectively. Its P/Cash is valued at 0.42.
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Goldman Sachs unit in talks for minority stake in Permira, WSJ says
By: Thefly | March 6, 2020
Petershill, a unit of Goldman Sachs that invests directly in alternative-investment firms, is in talks to potentially pay about $560M, for a minority stake in Permira, which would value the private equity firm at more than $5B, reported The Wall Street Journal's Miriam Gottfried and William Louch, citing people familiar with the matter.
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Latest Fundamentals:: The Goldman Sachs Group, Inc., (NYSE: GS)
By: NyseStockAlerts | February 21, 2020
On Thursday Shares of The Goldman Sachs Group, Inc., (NYSE: GS) generated a change of -1.94% and closed at $232.73
EPS growth is a significant number as it suggests the performance of a company. It is generally exposed as a percentage and is then referred to as the E-P-S growth rate. Growth in E-P-S is an essential measure of administration performance because it shows how much money the company is making for its investors or stakeholders, just not changes in profit but also after-effects of issuance of new shares (this is especially important when the growth comes as a result of acquisition).
The Goldman Sachs Group, Inc., NYSE: GS):
The Goldman Sachs Group, Inc., belongs to the Financial sector and Investment Brokerage – National industry. The company’s Market capitalization is 82.85B with the total Outstanding Shares of «Outstanding». GS stock construct a change of -1.94 in a total of its share price and finished its trading at 232.73.
The Goldman Sachs Group, Inc. institutional ownership is held at 76.10% while insider ownership was 0.40%. As of now, GS has a P/S, P/E and P/B values of 1.52, 11.08 and 1.07 respectively. Its P/Cash is valued at 0.88.
The stock has observed its SMA50, which is now -1.46%. In looking at the SMA 200, we see that the stock has seen a 8.74%..
Profitability ratios:
Looking into the profitability ratios of GS stock, an investor will find its ROE, ROA, ROI standing at 11.50%, 1.00% and 1.70%, respectively.
Earnings per Share Details of The Goldman Sachs Group, Inc.:
The E-P-S of GS is strolling at 21.01, counting Earning per Share growth this year at 21.50%. As a result, the company has an earning per share growth of 11.48% for the next year.
Given the importance of recognizing companies that will make sure earnings per share at a high value, we later obsession to umpire how to recognize which companies will get high amassing standards. One major show off to recognize high annual net index count combined of all companies, which are to mention the companies that have demonstrated such build up beyond the p.s. 5 to 10 years.
We can’t have too much stability the once will always reflect the difficulty, but practically United State stock exchange which has grown earnings per allowance sharply in the after are an excellent results makes a continuing effect is a finding of continues struggle.
Analyst’s mean target price(TP) for the company is 268.11 while analysts mean suggestion is 2.30.
A beta(B) factor is used to measure the volatility of the stock. The stock remained 1.82% volatile for the week and 1.79% for the month.
Historical Performance Of GS In The News:
Taking a look at the performance of The Goldman Sachs Group, Inc. stock, a stockholder knows that the weekly performance for this stock is valued at -2.48%, resulting in a performance for the month at -5.28%.
Therefore, the stated figure shows a four-month performance of 5.92%, bringing the 6-month working result to 16.38% and YTD performance of 1.22%. As of now, The Goldman Sachs Group, Inc. has a P/S, P/E and P/B values of 1.52, and 1.07 respectively. Its P/Cash is valued at 0.88.
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Haven't looked into this (sector) all that much yet but
Goldman Sachs Partner in Technology Investments, Rana Yared, Leaves Firm
By: TheStreet | February 5, 2020
• Rana Yared will become general partner at a venture capital firm.
Rana Yared, a partner at Goldman Sachs (GS) who helped lead the bank’s strategic investments in technology, particularly financial technology, is leaving the firm.
Goldman revealed the move in an internal announcement Wednesday. Yaredwas a partner in Goldman’s principal strategic investments team. That team invests Goldman’s own capital in young technology companies.
Yared plans to join a venture capital firm as a general partner, a knowledgeable source told TheStreet. Goldman named her a partner in 2018 at just 34 years old. She joined the firm in 2006.
While Yared is leaving, Goldman CEO David Solomon is trying to bring more women into high-level positions.
The firm has struggled for much of the time since the financial crisis as its vaunted trading operation sputtered and stricter bank regulation curbed its profit-making opportunities. Some analysts viewed Goldman as adrift under the stewardship of Lloyd Blankfein, who retired as CEO in 2018.
Morningstar analyst Michael Wong has a somewhat positive outlook on the bank now. “Narrow-moat Goldman Sachs' overhanging issues should clear in the next quarter or so,” he wrote in a report last month.
Those issues include the 1MDB scandal for which Goldman took a charge of $1.1 billion in the fourth quarter. Investors also are focusing on what new strategies Solomon will adopt. Wong puts Goldman’s fair value at $250.
At last check, the shares traded at $244.06, up 0.88%. The stock has gained 27% over the past year, compared to 22% for the S&P 500.
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Goldman Talks With Amazon on Potential Small Biz Online Lending Platform
By: TheStreet | February 3, 2020
• Goldman Sachs and Amazon are in 'advanced talks' over a potential deal that could dramatically bolster the Wall Street giant's push into mainstream banking, a report says.
Goldman Sachs (GS) is eyeing plans to team up with Amazon.com (AMZN) in a blockbuster partnership that would enable the financial services giant to offer small business loans over the tech company's online lending platform, the Financial Times reported.
The two companies are in "advanced talks" over the potential deal, which offers Goldman the opportunity of breaking into a lucrative area of mainstream banking without having to roll out a costly branch network.
Amazon is currently building out the tech capabilities to offer loans to small and medium-sized businesses through Amazon's online lending platform, with the venture potentially ready to kick off in March, according the Financial Times, which cited two sources familiar with the talks. The new lending venture would likely carry Goldman's name.
Shares of Goldman and Amazon rose Monday amid news of the potential deal. Goldman rose 1.54% to $241.40 a share, while Amazon edged up 1.22% to $2,033.21 a share.
News of the potential deal comes as Goldman makes a major push to boost profits by expanding into the consumer finance and retail banking sectors at a time when demand for trading is slowing amid the rise of passive investment strategies.
In Goldman's first-ever investment day last week, Goldman CEO David Solomon laid out plans to boost returns to the mid-teens or higher over the next three years as the financial services company accelerates its push into areas like consumer banking, transaction banking and wealth management.
Goldman had $60 billion in consumer deposits as of Dec. 31, while having issued another $7 billion in credit card debt and other loans, according to Reuters.
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Goldman Sachs won’t list your company if only white men are on the board
By: Financial News | January 23, 2020
• CEO David Solomon acknowledges bank may lose some business in pursuit of greater diversity on boards
Goldman Sachs, one of the world's leading advisers on IPOs, will no longer take companies in the US and Europe public if they have boards made up entirely of white men.
Speaking to CNBC at the World Economic Forum at Davos on 23 January, the US investment bank’s chief executive, David Solomon, said: “I think from a governance perspective, diversity on boards is a very, very important issue. We have been very, very focused on it. So we’re trying to find ways to encourage that.”
From 30 June, Goldman will insist that every company it helps with an initial public offering in its two core regions (Europe and the US) have at least one “diverse director”. This will increase to two in June 2021.
The bank plans to work with companies it is currently advising on how to improve their diversity representation before any pre-June listing, including by providing access to a network of potential candidates.
Goldman finished last year as the world’s second biggest bank for bookrunning IPOs globally, according to the data provider Dealogic.
Solomon said: “I look back at IPOs over the last four years and the performance of IPOs...in the US is significantly better than the performance of IPOs where there hasn’t been a woman on the board.”
Goldman’s own 11-person board includes four women and one black lead director.
Of Goldman’s plans, Solomon said: “We realise that this is a small step but a step in a direction of saying, ‘You know what, we think this is right’. We think it’s the right advice and we’re in a position, also because of our network, to help our clients if they need help placing women on boards.”
He added: “We might lose some business but in the long run this is the best advice for companies that want to drive premium returns for the shareholders over time.”
The announcement came after a separate interview at Davos, in which Solomon called WeWork’s failed IPO a good example of the listing process working. Wall Street investors had baulked at the shared-workspace start-up’s valuation, which Goldman was underwriting.
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Litigation Costs Weigh on Goldman Sachs Stock After Earnings
By: 24/7 Wall St. | January 15, 2020
Goldman Sachs Group Inc. (NYSE: GS) reported fourth-quarter and full-year 2019 results before markets opened Wednesday. The investment bank reported diluted quarterly earnings per share (EPS) of $4.69 on net revenue of $9.96 billion. In the same period a year ago, the bank reported EPS of $6.04 on revenue of $8.08 billion. Fourth-quarter results also compare to the consensus estimates for EPS of $5.47 on revenue of $8.51 billion.
For the full fiscal year, Goldman reported revenues of $36.55 billion and EPS of $21.03, compared to 2018 revenues of $36.62 billion and EPS of $25.27. Analysts had been looking for EPS of $21.75 and revenues of $35.07 billion. The bank noted that annual earnings included a $3.16 per share charge ($1.1 billion) related to litigation.
Fourth-quarter revenues were up 23% year over year, but diluted EPS was down 22%. For the full year, revenues were flat and EPS fell by 17%.
Book value per common share ended the year essentially flat at $218.52, and annualized return on equity for the year came in at 10%. Net income fell by 20% to $7.9 billion. For the quarter, net income fell by 26% year over year to $1.72 billion.
Investment banking revenues fell 6% compared with the fourth quarter of last year and 7% annually. Fixed income revenues rose 33% on a quarter-over-quarter basis and 2% for the year. Trading revenue was up 33% in the quarter and 2% year over year. Asset management revenues rose by 52% for the quarter and 1% for the year, while consumer and wealth management revenues were up 8% in the quarter and 1% for the year.
The firm’s effective tax rate rose from 16.2% in 2018 to 20% for 2019. Goldman expects its 2020 effective tax rate to rise to 21%.
The bank did not offer guidance in its press release, but the consensus estimates call for first-quarter EPS of $6.16 on revenues of $9.45 billion. The EPS forecast for the 2020 fiscal year is $23.99 on revenues of $36.2 billion.
Shares traded down about 0.7% in the premarket Wednesday to $244.00, having closed on Tuesday at $245.66. The current 52-week range is $180.73 to $248.52. The consensus 12-month price target was $259.00 before results were announced.
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Is Goldman Sachs Poised for a Big Win?
By: 24/7 Wall St. | January 14, 2020
Goldman Sachs Group Inc. (NYSE: GS) is set to report its most recent quarterly results before the markets open on Wednesday. Analysts expect to see $5.46 in earnings per share (EPS) and $8.51 billion in revenue. The fourth quarter of last year reportedly had $6.04 in EPS and $8.08 billion in revenue.
During the most recent quarter, Investing & Lending net revenues included record quarterly net interest income in debt securities and loans. Also, Investment Management net revenues included record quarterly management and other fees.
The third-quarter results reflected the underlying strength in the global client franchise and its ability to produce solid results in the context of a mixed operating environment. However, with Goldman Sachs’ focus on investing in growth opportunities, the rising tide of the past quarter could prove beneficial for the investment bank.
If the Goldman Sachs quarterly report is anything like JPMorgan’s fourth quarter, then trading revenues will be a big factor.
Overall, Goldman Sachs stock has outperformed the broad markets, up about 38% in the past 52 weeks. In the past quarter alone, the stock is up 20%.
A few analysts weighed in on the investment bank ahead of the report:
• Piper Sandler has an Overweight rating.
• JMP Securities rates it Outperform with a $290 price target.
• Buckingham Research has a Buy rating and a $290 price target.
• Merrill Lynch has a Buy rating and a $270 target price.
• D.A. Davidson’s Buy rating comes with a $272 price target.
• RBC has a Neutral rating and a $220 target price.
• Barclays has a Hold rating with a $267 price target.
Shares of Goldman Sachs traded at $246.30 on Tuesday, in a 52-week range of $176.40 to $246.44. The consensus price target is $257.25.
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Goldman Sachs policy change may end business with Alaska
By: Zacks Investment Research | December 24, 2019
ANCHORAGE, Alaska (AP) — Alaska's governor said the state may stop working with Goldman Sachs after the bank announced it would not finance future Arctic oil exploration.
Republican Gov. Mike Dunleavy said he is reconsidering whether Alaska should do business with Goldman, The Anchorage Daily News reported.
“I think it’s part of my role to advocate on behalf of Alaska,” Dunleavy said.
In addition to excluding investment in Arctic drilling, Goldman plans to prohibit financing for coal-fired power plants that do not have equipment to reduce carbon emissions.
The state removed Goldman from the list of five participating banks in the Alaska Tax Credit Certificate Bond Corp. following Goldman's announcement of its updated environmental policy.
Alaska named Goldman a co-senior underwriter for the corporation in early December. The agency is authorized by the state Legislature to borrow up to $1 billion from public markets to pay tax credits to North Slope oil and gas drillers.
The corporation’s work has been on hold for more than a year after a Juneau man sued to stop the plan. The Alaska Supreme Court is expected to rule on its legality.
“Goldman Sachs has underwritten over $2.4 billion of bonds as part of 26 transactions over the last 10 years” with state agencies and municipalities, Alaska Department of Revenue legislative liaison Genevieve Wojtusik said in a statement.
Goldman also has an arrangement with the Alaska Gasline Development Corp.
The Alaska Permanent Fund Corp. has about $403 million of assets associated with the bank, Permanent Fund Corp. CEO Angela Rodell said.
Dunleavy also raised the possibility of taking action against other companies that take actions similar to Goldman.
Copyright 2019, Associated Press, The
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Goldman Sach’s Private Equity Arm Sold Safe-Guard Products International
By: Barron's | December 19, 2019
Safe-Guard Products International LLC looks like it will be sold to a private-equity firm for a third time.
Stone Point Capital, a financial services-focused private-equity firm, is buying Safe-Guard, a person familiar with the sale said. The purchase price is more than $1 billion, the person said. The seller is Goldman Sachs Group’s buyout arm.
Founded in 1992, Safe-Guard provides third-party extended warranties for vehicles mainly in the U.S. This can include coverage for tire and wheel, dent and dings, and windshields. Safe-Guard said its contracts protect more than 13 million consumers. The Atlanta company employs more than 500 people, its website said.
News of the Safe-Guard sale first appeared on the FTC website on Dec. 17. The Hart-Scott-Rodino Act requires U.S. companies to report any deal valued at more than $90 million to regulators.
Stone Point, of Greenwich, Connecticut, focuses on companies in financial services including asset management, insurance as well as health care services. The buyout shop typically invests between $75 million equity to $750 million equity per transaction, the firm’s website said. Stone Point is marketing for its eighth flagship fund, which has a $6.5 billion hardcap, Private Equity International reported in February. The firm’s prior pool, Trident VII, collected $5.5 billion in 2017, PitchBook said.
Goldman’s investment dates to January 2013 when it completed its acquisition of Safe-Guard from H.I.G. Capital, a press release from that time said. The deal was valued at $375 million, The Wall Street Journal said. H.I.G. made 20 times its initial investment with the sale, the story said.
Goldman has already gotten some of its money back. In March 2017, Safe-Guard paid out a roughly $121 million cash distribution to its shareholders, including Goldman, Moody’s Investors Service said.
Reuters reported in August that Goldman had put Safe-Guard up for sale. Goldman and Jefferies advised on the current process, the person said.
Spokespeople for Goldman and Jefferies declined to comment. Stone Point and Safe-Guard could not be reached for comment.
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Goldman Is Said in Talks With U.S. to Settle Criminal Case Tied to Malaysia Investment Fund
By: TheStreet | December 19, 2019
• To settle the case, the New York investment bank would pay a fine of around $2 billion and accept the appointment of a monitor for its compliance procedures, reports say.
Goldman Sachs (GS) is negotiating with the U.S. government to settle a criminal investigation tied to a Malaysian corruption case, according to reports.
To settle the case with the U.S. Justice Department, the New York investment bank would pay a fine of around $2 billion and accept the appointment of an independent monitor for its compliance procedures, people familiar with the matter told Bloomberg and The Wall Street Journal.
Goldman's Asia subsidiary also would plead guilty to violating U.S. bribery laws, some of the people familiar with the matter told the Journal.
The case arose from Goldman's raising of $6.5 billion for a client, called 1MDB or 1Malaysia Development Bhd. 1MDB is a Malaysian-government-owned investment fund.
U.S. authorities said that much of that money was stolen by a Malaysian government adviser and two Goldman bankers, the Journal reported.
The authorities charge that the bank ignored warning signs about the adviser in an effort to garner fees of about $600 million, the report said.
Goldman is separately discussing a settlement with Malaysia, Bloomberg reported. The country publicly is demanding $7.5 billion from from Goldman, Bloomberg reported.
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Call Buying Surging as Goldman Sachs Hits New Highs
By: Schaeffer's Investment Research | December 17, 2019
• GS stock received a price-target hike this morning
• GS stock hit a fresh high yesterday
Goldman Sachs Group Inc (NYSE:GS) has benefited from the recent stock market rally, hitting a 52-week high of $230.70 yesterday. During this breakout, call buying has ramped up at the major exchanges. This is according to the 10-day call/put volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) which, at 4.24, ranks in the 100th annual percentile.
The front-month December series saw some of the action during this time frame, but going out further, other traders were opening positions at the January 2020 230- and 250-strike calls. Still, near-term options look attractively priced at the moment, based on the 30-day at-the-money implied volatility of 19.4%, a number that ranks in the low 7th annual percentile, hinting at unusually low volatility expectations at the moment.
Most analysts still have bearish rating on the banking giant, however. By the numbers, seven of 12 brokerage firms have "hold" or "strong sell" recommendations. But it was actually a price-target hike out of Wells Fargo that put GS shares on our radar this morning, as an analyst there bumped their price target to $280 from $240. Goldman Sachs shares this morning are up 0.7% at $229.86.
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Goldman Sachs becomes first major U.S. bank to stop funding Arctic drilling, pulls back on coal
By: MarketWatch | December 16, 2019
Climate advocacy groups had calculated roughly $700 billion in fossil-fuel financing by the world’s largest investment banks just since the signing of the Paris agreement
Goldman Sachs has announced the strongest fossil-fuel finance restrictions of any major U.S. bank, a move conditionally embraced by advocacy groups such as the Sierra Club.
Goldman GS, -0.46% , with its Sunday announcement, becomes the first of the large U.S. banks to establish explicit restrictions on financing for any part of the oil-and-gas sector. The policy change stressed protecting the Arctic National Wildlife Refuge in particular. It is also the first major U.S. bank to rule out direct finance for thermal coal mines and plants worldwide, including a phase-out of financing for significant thermal coal mining companies that do not have a diversification strategy.
Advocates, including Sierra Club and the Rainforest Action Network, who are calling for a more-aggressive response to man-made climate change, emphasized that U.S. banks still lag behind global competitors who have slowed the spigot of finance to the Arctic and other fossil fuel concentrations.
“Goldman Sachs’s updated policy shows that U.S. banks can draw red lines on oil and gas,” said Jason Opeña Disterhoft, climate and energy senior campaigner at RAN, repeating a call for other major U.S. banks, including Bank of America BAC, +1.10% and Morgan Stanley MS, -0.89% to match this action. RAN has been particularly critical of JP Morgan Chase JPM, -0.88%, which Opeña Disterhoft claimed is “the world’s worst banker of fossil fuels by a wide margin.” A RAN report had put JP Morgan’s tab for fossil fuel finance at roughly $196 billion between the December 2015 signing of the Paris climate agreement and the end of 2018.
Plus, the climate advocates said, the goals from the banking sector remain far from alignment with what is needed to limit climate change to 1.5 degrees Celsius, the target laid out in the Paris climate pact. The Goldman policy comes after years of work from RAN and other advocates who have calculated roughly $700 billion in financing by the world’s largest investment banks just since the Paris agreement. The U.S. earlier this fall began the process of pulling out of the agreement, a move that President Trump has pinned on U.S. grievance with noncompliance from China and others.
Goldman, in its release, said the motive was environmental, but its past analysis has also focused on the quality of the energy investment itself. In 2017, for example, one of the bank’s natural resource experts said in a note, “We think there is almost no rationale for Arctic exploration … Immensely complex, expensive projects like the Arctic we think can move too high on the cost curve to be economically doable.” The analyst at the time promoted investment in the more cheaply accessed Permian onshore U.S. fields of western Texas and southeastern New Mexico. Goldman was also among the top suitors for handling the history-making Saudi Aramco IPO, the state-owned oil giant whose valuation flirted with over a trillion at one point.
Goldman shares are up some 34% in the year to date, outrunning the 20% gain for the Dow Jones Industrial Average DJIA, +0.01%
Goldman in Sunday’s announcement acknowledged the scientific consensus on the climate crisis, and said was one of the “most significant environmental challenges of the 21st century.” The firm said it planned more services to help clients manage climate impacts, including through the sale of weather-related catastrophe bonds.
“The smart money on Wall Street is drawing red lines on oil and gas, and exiting coal,” said Opeña Disterhoft. “The big money has to respond, or it will be left holding the bag. Over to you, Jamie Dimon and JPMorgan Chase.”
For his part, Dimon has been critical of Trump’s withdrawal of the Paris pact. He has also said the climate change-fighting initiatives laid out in the Democrat-designed Green New Deal push too fast toward fulling decarbonizing the U.S. economy.
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Goldman Sachs: Taking Profits Before Potential Disappointments
By: Seeking Alpha | December 4, 2019
Goldman Sachs (GS) is up 27% year-to-date as investors look forward to the company's first ever Investor Day on 29 January. I've outlined the fundamentally negative view I hold of GS in previous articles (here and here) and it hasn't changed. It revolves around my belief that the pivot away from its historic institutional trading-based business model and into new businesses such as consumer banking and mid-corporate lending will take much longer to deliver results than the market thinks.
The bulls have pointed to the Investor Day as a chance for the company to show-case the upside in new activities like Marcus, the consumer deposit and lending platform, and Apple Card. However, it looks increasingly as if we've already enjoyed the best of the ride in terms of the share price pop the event can deliver and I see a growing risk it will fail to live up to expectations with negative consequences for the share price.
The ratcheting down of expectations has already begun
What makes me nervous is the increasing volume of comments in the press lately from "sources close to the company" trying to take the steam out of investors' expectations.
• The Financial Times reported this week that GS will avoid setting strict profitability targets and will focus instead on less concrete "through the cycle" goals for metrics like ROE and cost:income. It also reported that management will try to steer attention back to the company's core businesses rather than the new initiatives in consumer banking and credit cards, acknowledging that "it was not remotely possible for the consumer businesses to generate material earnings in the next five years".
• Reuters also reported recently that management are likely to step away from the $5bn revenue goal by 2020 for the new businesses that it set in 2017. Reuters says this number is likely to be replaced by a broader set of measures including efficiency targets and profitability metrics.
• The 3Q earnings call also contained a number of comments from management that seemed aimed at lowering expectations with lots of talk about sacrificing short term profitability for longer term paybacks:
We think about getting real contributions from some of these investments that we’re making over the next three to five years (CFO Stephen Scherr)
We continue to make investments to drive the returns of the firm higher in the medium and longer term and we are willing to sacrifice some short-term returns to make these investments, better position and strengthen the franchise and allow us to better deliver for our clients in the long run (CEO David Solomon)
Don't expect miracles
All of this suggests we need to keep focusing on the here-and-now of GS and not expect that new businesses will deliver a magic wand.
Unfortunately, the here and now continues to look very unappetizing from my point of view.
ROTE remains middling at best
The fundamental problem for GS is that it is not generating returns that are adequate for the risk profile of the business. 3Q ROTE was 9.5% and middling compared to global peers. It was the lowest of US peers, where the range was 10-13%. 9m19 ROTE is running at a slightly better level of 11% but is still probably below cost-of-equity.
Source: 10-Qs or equivalent company disclosures
GS continues to struggle against a loss of market share in its once dominant fixed income franchise where revenues are tracking almost 20% lower than 2016 levels for 9m19, the weakest relative performance of peers. Given FICC is still by far the biggest consumer of capital within GS, this explains much of the ROTE problem
Source: 10-Qs
Source: 10-Qs or equivalent company disclosures
Risk profile remains higher than peers
Yet despite poor relative profitability we know that GS continues to take more risk than peers.
Late October saw the publication of mid-cycle Dodd-Frank stress test results for the largest US banks, including GS (GS's disclosure can be found here).
Two aspects of the results stand out.
First, in the severely adverse stress scenario (which models a severe global recession and global stock market shock) GS shows the largest fall in CET1 regulatory capital of peers. The bank calculates that it would incur pre-tax losses of $33bn in the severely adverse scenario and see a decline in CET1 capital of 6.9%. This compares to an average CET1 decline of 4.2% among peers...
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Goldman to Pay $20 Million to Settle Bond Rigging Lawsuit
By: Zacks Equity Research | November 18, 2019
The Goldman Sachs Group, Inc. (GS) is required to pay $20 million as penalty in order to settle a lawsuit accusing the bank of rigging bond prices issued by Fannie Mae and Freddie Mac. The settlement is yet to get judge’s approval.
The lawsuit was filed against 15 other financial institutions, accusing them to have exploited their market presence by raising prices of bonds in the period between 2009 and 2015. Goldman, Barclays Plc (BCS), JPMorgan Chase and UBS Group (UBS) are said to have underwritten $3.97 trillion, or 77.2% of such bonds.
Though Goldman has not accepted any wrongdoings, it has agreed to make changes to its antitrust-compliance policies related to bond trading as part of the settlement terms. The firms remaining as defendants in the case are Credit Suisse, Barclays and Citigroup.
Also, the company has presented 71,000 pages of potential evidence along with four transcripts of chatroom conversations between its traders and those from Deutsche Bank (DB), BNP Paribas SA, Morgan Stanley and Merrill Lynch.
The class action is led by Pennsylvania Treasurer Joe Torsella, a Birmingham, AL public pension fund, and electrical workers’ retirement and health plans in Dorchester, MA.
Our Take
While Goldman is on track to remodel its business into a more profitable organization, it continues to face several legal investigations, which are likely to keep costs elevated. Also, declining trading revenues due to low levels of volatility and client activity remain a concern.
The stock has gained 31.9% over the past six months compared with 12.2% growth of the industry it belongs to.
Goldman currently carries a Zacks Rank #4 (Sell).
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Goldman Plans to Provide Outlook for Metrics in January
By: Zacks Equity Research | November 12, 2019
The Goldman Sachs Group Inc. GS is planning to provide outlook for a wider range of financial metrics at its investor day to be held in January. The news was reported by Bloomberg.
Also, the company is looking to move away from its target to find $5 billion in fresh annual revenues by 2020, which was put forth in 2017, to expand in sources other than trading business. Per people familiar with the matter, Goldman can provide goals for its retail bank, Marcus.
Fear of global slowdown and trade war concerns have kept investors wary and keen to know about the company’s future plans. Also, investors have concerns over Goldman’s exposure to unpredictable trading revenues. Thus, it is planning to increase transparency with investors amid tough times.
Chief Executive Officer David Solomon had planned a strategic update earlier in 2019, which was later postponed as he wanted to be sure about the targets.
Goldman has been focused on digitizing operations and building consumer lending operations for quite some time. In 2016, it had launched online bank — Marcus by Goldman — which has been delivering promising results. While it is on track to remodel its business into a more profitable organization, it continues to face several legal investigations, which are likely to keep costs elevated.
The Zacks Rank #3 (Hold) stock has rallied 31.1% over the past six months compared with 12% growth of the industry it belongs to.
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Goldman to Be Investigated for Possible Sex Discrimination With Apple Card
By: TheStreet | November 11, 2019
Goldman Sachs and Apple criticized over possible sex bias with Apple Card.
The New York Department of Financial Services will investigate Goldman Sachs (GS - Get Report) for possible sex discrimination in the way it sets credit limits.
The investigation follows a series of viral tweets by entrepreneur and web developer David Heinemeier Hansson about algorithms used for the Apple Card, which Goldman Sachs manages in partnership with Apple (AAPL - Get Report) .
Goldman Sachs denied wrongdoing, according to the Associated Press.
Hansson said the card offered him a credit limit 20 times greater than it gave to his wife, even though she has a higher credit score. He called the algorithm a sexist program.
Hansson's complaint was followed by a supporting tweet from Apple co-founder Wozniak, who blamed both the bank and Apple for the alleged unfairness.
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Allianz to Pay $1 Billion for Goldman’s Taikang Life Stake
By: Bloomberg | November 6, 2019
(Bloomberg) -- German insurer Allianz SE has paid about $1 billion for part of Goldman Sachs Inc.’s stake in closely-held Chinese insurer Taikang Life Insurance Co., according to people with knowledge of the matter.
Goldman sold a stake of about 4% in Beijing-based Taikang Life to Allianz, according to a statement by the Chinese insurer on Wednesday. The statement didn’t provide any financial details. The U.S. investment bank will retain about 8.6% in Taikang Life after the transaction.
The sale had attracted interest from other potential suitors including private equity firms and some Asian investors, the people said, who asked not to be identified as the information is private.
A representative for Goldman Sachs declined to comment, while a representative for Allianz didn’t immediately respond to requests for comment.
Europe’s largest insurer is seeking to tap the growing demand for insurance products in China. Allianz’s investment in Taikang Life follows other recent acquisitions, including the general-insurance assets of Brazil’s SulAmerica in August and two insurance businesses in the U.K. for a combined $1 billion in May. Shares of Allianz rose 1% on Wednesday.
Founded in 1996, Taikang Life Insurance is among China’s largest insurance and financial services companies with 800,000 employees and agents, according to its website. Its main business areas are insurance, asset management, and health and elderly care. Goldman bought the stake in Taikang from French insurer AXA SA in 2011.
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Goldman makes a bet on credit-card startup Deserve
By: Seeking Alpha | November 5, 2019
• Goldman Sachs (NYSE:GS) is lead investor in a $50M financing round for Deserve, a firm that offers credit cards directly to nontraditional consumers with little credit history and uses machine learning and alternative data to assess their creditworthiness.
• Deserve also sells its cloud-based platform to corporations for them to offer their own branded cards.
• Originally, Deserve, which started as SelfScore in 2013, targeted international students who couldn't get traditional credit cards. then it branched out to other groups of millennials who had a difficulty in qualifying for credit cards due to a lack of credit history.
• Other companies that invested in the firms Series C round are: Sallie Mae (NASDAQ:SLM), Aspect Ventures, Pelion Venture Partners, and Mission Holdings.
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Goldman Sachs Asset Management to Host Quarterly MLP Closed-End Funds Conference Call
By: Zacks Investment Research | November 5, 2019
NEW YORK--(BUSINESS WIRE)-- Goldman Sachs Asset Management (“GSAM”) will host a conference call for the Goldman Sachs MLP Income Opportunities Fund (NYSE:GMZ) and Goldman Sachs MLP and Energy Renaissance Fund (NYSE:GER) (together, the “Funds”) on November 14th, 2019 at 4:15 PM EST. The call will feature Kyri Loupis, Head of the Energy and Infrastructure team at GSAM, along with Portfolio Managers Ganesh Jois and Matthew Cooper. The call will cover the market environment for U.S. energy and provide an update on the closed-end fund investment strategies.
The live webcast can be accessed via the web portal using conference ID: gsammlp2019 or through the GSAM Closed-End Fund landing page at www.GSAMFUNDS.com/cef.
Dial In Number: 888-724-9511
Conference ID: 6037851
In addition, portfolio holdings as of September 30, 2019, as well as additional information regarding each Fund, can be accessed through the GSAM Closed-End Fund landing page at www.GSAMFUNDS.com/cef.
The Funds
Each Fund is a non-diversified, closed-end management investment company managed by GSAM’s Energy & Infrastructure Team, which is among the industry’s largest master limited partnership (“MLP”) investment groups. The Goldman Sachs MLP Income Opportunities Fund began trading on the NYSE on November 26, 2013, and the Goldman Sachs MLP and Energy Renaissance Fund began trading on the NYSE on September 26, 2014.
Each Fund seeks a high level of total return with an emphasis on current distributions to shareholders. The Goldman Sachs MLP Income Opportunities Fund invests primarily in MLP investments. The Goldman Sachs MLP and Energy Renaissance Fund invests primarily in MLPs and other energy investments. Each Fund currently expects to concentrate its investments in the energy sector, with an emphasis on midstream MLP investments. The Goldman Sachs MLP and Energy Renaissance Fund invests across the energy value chain, including upstream, midstream and downstream investments.
About Goldman Sachs Asset Management, L.P.
GSAM is the asset management arm of The Goldman Sachs Group, Inc. (NYSE:GS), and supervises $1.61 trillion as of September 30, 2019.1 GSAM has been providing discretionary investment advisory services since 1988 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs 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 high-net-worth individuals.
1 Assets Under Supervision (AUS) includes assets under management and other client assets for which Goldman Sachs does not have full discretion.
Disclosures
Shares of closed-end investment companies frequently trade at a discount from their net asset value (“NAV”), which may increase investors’ risk of loss. At the time of sale, an investor’s shares may have a market price that is above or below NAV, and may be worth more or less than the original investment. There is no assurance that a Fund will meet its investment objective. Past performance does not guarantee future results. Investments in securities of MLPs involve risks that differ from investments in common stock, including among others risks related to limited control and limited rights to vote on matters affecting MLPs, potential conflicts of interest risk, cash flow risks, dilution risks and trading risks.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any security. Each Fund has completed its initial public offering. Investors should consider their investment goals, time horizons and risk tolerance before investing in a Fund. An investment in a Fund is not appropriate for all investors, and the Funds are not intended to be a complete investment program. Investors should carefully review and consider a Fund’s investment objective, risks, charges and expenses before investing.
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Goldman Sachs to give all new parents 20 weeks paid leave
By: Yahoo Finance Video | November 4, 2019
Goldman Sachs is making changes to be more family-friendly for its employees. In an internal memo obtained exclusively by Yahoo Finance, Goldman says it will offer all new parents 20 weeks paid leave, regardless of caregiver status. The bank will also add other benefits to help all groups on their path to parenthood.
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Goldman plans first-ever investor day on Jan. 29
By: Seeking Alpha | November 5, 2019
• Goldman Sachs Group (GS +0.1%) will hold its first-ever investor day on Jan. 29, 2020.
• Chairman and CEO David M. Solomon and the senior leadership team will deliver presentations on the firm's strategic priorities; attendance is by invitation only.
• CFO Stephen Scherr said at a conference today that the company won't announce any new initiatives at the event.
• Goldman is likely to give more details on new businesses that it has been expanding into, such as consumer banking and transaction banking, Bloomberg reports.
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Why Goldman Sachs Enhanced Income Strategy May Be Perfect for 2020
By: 24/7 Wall St. | November 4, 2019
Even though the S&P 500 now sits at all-time highs after over 10 years of a bull market, the venerable index still offers a 1.9% dividend yield and 6% expected dividend growth for 2020. While many would argue that now might not be the time for a huge passive investment in the index, it does make sense to look for strategies that offer multiple ways to generate total return through its biggest and best stocks.
With the Treasury market at close to all-time low yields, and many stocks in the S&P 500 trading at very stretched valuations, Goldman Sachs may have the best strategy for investors for 2020. The firm’s Equity Enhanced Income Strategy portfolio has 23 companies that all have investment grade debt ratings, 90% of the companies have raised their dividends in the past 12 months and 80% have repurchased stocks in that time.
The strategy is to buy shares and then sell covered call options. Combining the call premium income with dividend income and the potential for capital gains gives inventors the potential for total return that may be higher than just owning the shares. With a very rich and fully valued S&P 500, selling calls makes sense, and the worst scenario is the stock is called away at a profit.
We screened the 23 stocks in the portfolio for the companies paying the highest dividends that also have a Buy rating at Goldman Sachs. We found five that look like great ideas now for investors looking to mold a 2020 plan.
Chevron
This integrated giant is a safer way for investors looking to stay or get long the energy sector, and it has big Permian Basin exposure. Chevron Corp. (NYSE: CVX) is a U.S.-based integrated oil and gas company, with worldwide operations in exploration and production, refining and marketing, transportation and petrochemicals.
The company sports a sizable dividend and has a solid place in the sector when it comes to natural gas and liquefied natural gas. Some on Wall Street estimate that the company will have a compound annual growth rate of over 5% for the next five years, though it is among the companies with the largest corporate debt.
With Permian production and asset disposals targets reset, many analysts feel Chevron can raise the dividend 20% and buyback 15% of shares. Last week, Chevron reported adjusted third-quarter earnings that were above the Wall Street consensus estimate. The beat was driven by strong production, which increased by almost 3% from the third quarter of 2018.
Chevron shareholders receive an outstanding 4.10% dividend. The Goldman Sachs analysts have a $137 price target on the shares, nearly in line with the Wall Street consensus target of $137.46. The shares closed Friday’s trading at $116.16 apiece.
Johnson & Johnson
With a diverse product base and very popular and solid brands, this is among the most conservative big pharmaceutical plays. Johnson & Johnson (NYSE: JNJ) is one of the top market cap stocks in the health care sector and will raise the dividend for shareholders this year for the 56th consecutive year. With everything from medical devices to over-the-counter health items and prescription drugs, Johnson & Johnson remains one of the most diversified health care names on Wall Street.
The health care giant also has one of the most exciting pipelines of new drugs in the sector. That combined with the solid over-the-counter product business makes the stock an outstanding holding for conservative accounts with a long-term investment outlook. The company generates a little over half of its sales in international markets, which are expected to see higher spending on health care over the next 10 years and beyond.
The company still faces the public relations nightmare of lawsuits and allegations over the firm’s talcum powder allegedly containing asbestos and causing ovarian cancer. In addition, Johnson & Johnson also faces some opioid litigation, another headline that is keeping investors away.
Shareholders receive a solid 2.90 dividend. The Goldman Sachs price target is $173, which is much higher than the consensus target of $150.24. The shares closed trading at $131.20 on Friday.
Las Vegas Sands
This top company is not only a great way to play gaming but a solid dividend payer as well. Las Vegas Sands Corp. (NYSE: LVS) is the world’s leading developer and operator of integrated resorts. It owns the Venetian Resort, the Palazzo and the Sands Expo Convention Center in Las Vegas, as well as Sands Bethlehem in Pennsylvania.
The company also owns the Sands Macao, Venetian Macao, Four Seasons Macau, Parisian and Sands Cotai Central in Macau, and also the Marina Bay Sands in Singapore.
Las Vegas Sands offers investors a huge 4.89% dividend. The $73 Goldman Sachs price target compares with the $68.52 consensus target and the most recent close at $63.05 a share.
Procter & Gamble
The stock offers a very solid dividend and safety. Procter & Gamble Co. (NYSE: PG) is one of the world’s largest consumer products companies, and it operates in five segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby & Family Care. Its many brands include Pampers, Tide, Bounty, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy and Dawn. Some of these are among the most valuable brands in the world.
The company actually is innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors years of steady growth and dividends.
Shareholders receive a 2.41% dividend. The Goldman Sachs price objective is $136. The consensus target is $128.14, and the stock closed most recently at $123.86 per share.
Verizon Communications
This top telecommunications company offers tremendous value. Verizon Communications Inc. (NYSE: VZ) is a global leader in delivering the digital world. Verizon Wireless operates America’s self-described most reliable wireless network, with 109.5 million retail connections nationwide.
Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide. Verizon is another of the most valuable brands in the world.
Verizon investors receive an outstanding 4.07% dividend. Goldman Sachs has set a $67 price objective. The posted consensus price target is $61.79, and the stock closed Friday’s trading at $60.36.
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Goldman Sachs $GS Pops After Earnings, Here's Where It Hits A Wall
This morning, leading financial stock, Goldman Sachs Group Inc (NYSE:GS), is trading higher after reporting earnings. The financial giant is trading higher by $2.77 to $214.35 a share as investors celebrate the company's results. Many traders and investors are wondering how high could GS stock go before it stalls out. After all, the stock has been rising since June 3rd when it traded as low as $180.73 a share. Traders and investors can easily see that the stock will face major resistance around the $220.00 area. This key resistance level is where the stock broke down on volume back in early November 2018. Often, when a stock retraces back up to its former break down level it will be met with major selling pressure. Remember, there are traders and investors that have been holding the equity from that time and will usually look to get out of the stock when given the chance to get back to break-even.
Nicholas Santiago
InTheMoneyStocks
Goldman will reward the bulls.
We are looking for a break of resistance in GS at $209 for a quick jump to $219, price action is limited in this zone given the speed in which the stock dropped. We hope for a speedy move up to the golden pocket at approx $228. If and when the wheels fall of tech , financials is where the wise money will continue to hide out. We are bullish financials.
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