Key Highlights:
- Goldman Sachs raises its quarterly dividend by 33%, signaling financial strength.
- Analysts project a potential downside for the stock despite the dividend hike.
- GuruFocus values Goldman Sachs significantly below its current trading price.
Goldman Sachs Boosts Dividend Amid Strong Stress Test Results
In a strategic move reflecting its robust financial health, Goldman Sachs (GS, Financial) has announced a substantial 33% increase in its quarterly dividend. Effective July 1, 2025, shareholders will receive $4.00 per share, an increase from the previous $3.00. This decision aligns with a significant enhancement in the bank's stress capital buffer, facilitated by a remarkable 280-basis-point improvement in its 2025 stress test outcomes.
Wall Street's Take on Goldman Sachs
As per insights from 18 analysts, the one-year average price target for The Goldman Sachs Group Inc (GS, Financial) is predicted at $603.85. Notably, the highest estimate is $720.00, while the lowest stands at $500.00. This average target indicates a potential downside of 14.52% from the current trading price of $706.46. For a deeper dive into these projections, visit the Goldman Sachs Group Inc (GS) Forecast page.
Brokerage Firms' Recommendations
Consensus from 23 brokerage firms places Goldman Sachs in an "Outperform" category, with an average recommendation score of 2.4. This rating, derived from a 1 to 5 scale—where 1 means Strong Buy and 5 denotes Sell—reflects a generally optimistic outlook among analysts.
GuruFocus's Valuation Insights
According to GuruFocus estimates, The Goldman Sachs Group Inc (GS, Financial) has an estimated GF Value of $479.11 for the upcoming year, indicating a downside of 32.18% from the current market price of $706.46. The GF Value represents GuruFocus' calculated fair value, considering historical trading multiples, past business growth, and future performance projections. More comprehensive data is available on the Goldman Sachs Group Inc (GS) Summary page.
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