Goldman Sachs shares gain for a third straight session on Wednesday, bank boosts stake in Spanish supermarket chain DIA

October 4, 2018 9:30 am

According to a regulatory filing by Goldman Sachs Group, the investment bank has increased its stake in Spanish supermarket chain DIA from 14.5% to 15.8%.

The document emerged several days after DIA’s main shareholder said its own stake had been raised near the legal threshold, which allows for a full takeover bid.

Goldman Sachs shares closed higher for a third consecutive trading session in New York on Wednesday. It has also been the sharpest daily surge since September 20th. The stock went up 0.76% ($1.71) to $227.78, after touching an intraday high at $229.75, or a price level not seen since September 27th ($229.85).

Shares of Goldman Sachs Group Inc have retreated 10.59% so far in 2018 compared with a 9.42% gain for the underlying index, S&P 500 (SPX).

In 2017, Goldman Sachs’s stock rose 6.39%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

The filing with Spanish regulator CNMV revealed that the Wall Street bank now held 1.5% of DIA directly and another 14.3% through derivative instruments.

As noted in a report by Reuters, at the end of September, main shareholder LetterOne, which is controlled by tycoon Mikhail Fridman, upheld speculation that a takeover bid might be launched, after the Luxembourg-based group informed CNMV that its stake in DIA had been increased to 29%.

Regulatory framework in Spain postulates that an investor has to launch a full takeover bid as soon as their stake reaches 30%.

According to CNN Money, the 26 analysts, offering 12-month forecasts regarding Goldman Sachs’s stock price, have a median target of $279.00, with a high estimate of $337.00 and a low estimate of $200.00. The median estimate represents a 22.49% upside compared to the closing price of $227.78 on October 3rd.

The same media also reported that 13 out of 28 surveyed investment analysts had rated Goldman Sachs’s stock as “Hold”, while 11 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Goldman Sachs stock are presented as follows:

R1 – $228.07
R2 – $228.36
R3 (Range Resistance – Sell) – $228.65
R4 (Long Breakout) – $229.51
R5 (Breakout Target 1) – $230.52
R6 (Breakout Target 2) – $230.95

S1 – $227.49
S2 – $227.20
S3 (Range Support – Buy) – $226.91
S4 (Short Breakout) – $226.05
S5 (Breakout Target 1) – $225.04
S6 (Breakout Target 2) – $224.61

By using the traditional method of calculation, the weekly levels of importance for Goldman Sachs Group Inc (GS) are presented as follows:

Central Pivot Point – $227.93
R1 – $232.05
R2 – $239.87
R3 – $243.99
R4 – $248.12

S1 – $220.11
S2 – $215.99
S3 – $208.17
S4 – $200.36

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