3. Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 71
PE Ratio as of June 24: 5.85
Insider Monkey spotted 71 hedge funds bullish on Goldman Sachs Group, Inc. (NYSE:GS) at the close of Q1 2022. These funds held collective stakes worth $4.59 billion in the company. Of these, $1.12 billion were of Eagle Capital Management, the largest shareholder in the company.
As of June 24, Goldman Sachs Group, Inc. (NYSE:GS) has a forward dividend yield of 2.80%, a PE ratio of 5.85, and is trading at $302.75 a share, making now the time to buy the undervalued dividend-paying bank stock.
As of this May, Oppenheimer analyst Chris Kotowski has a $519 price target and Outperform rating on Goldman Sachs Group, Inc. (NYSE:GS).
Ariel Investments, an investment management firm, mentioned Goldman Sachs Group, Inc. (NYSE:GS) in its Q4 2021 investor letter. Here is what the firm said:
“Rising interest rates, after a surprisingly long period of low absolute rates and negative “real” rates, will create a headwind. While there has been much debate about the cause of these low rates, we believe the most important factor has been the $120 billion in monthly federal reserve open market bond purchases and the accumulation of an $8 trillion balance sheet. The former will end, and the latter will shrink. It is not just the Fed that has aggressively purchased bonds, bidding up prices and lowering yields. Bond traders and hedge fund managers have added to positions, confident that being on the same side as the Fed was the wise place to be. Now as the Fed is about to become a seller of bonds rather than a buyer, Wall Street’s “smart money” is likely to follow suit. Against this backdrop, fixed income securities and bond substitutes such as high dividend paying utilities and absolute return hedge funds are substantially overpriced and are not likely to produce attractive returns going forward.
This expectation of a reversion to the mean for interest rates helped 2021 performance, though not as much as we had hoped. The yield on the U.S. 10-year Treasury did indeed increase from +0.92% at the beginning of the year to +1.52% at year-end. An underreported story was the poor performance of bonds last year. The Barclays Aggregate Index declined -1.67% for the year ending December compared to a return of +28.71% for equities as measured by the S&P 500. Interest rates have continued to climb in 2022 with the 10-year Treasury at +1.79% as we go to print. This move higher in rates has contributed to our good, early start to 2022. The Goldman Sachs Group, Inc. (GS) jumped +47.59% for the year and +1.73% in the quarter.”
