Goldman Sachs shares gain for a second straight session on Friday, group moves closer to acquisition of United Capital Financial Partners

May 13, 2019 7:22 am

According to a report by Reuters, citing a source, Goldman Sachs Group Inc (GS) is moving closer to a deal to acquire United Capital Financial Partners Inc, a boutique wealth management company.

Goldman Sachs shares closed higher for a second consecutive trading session in New York on Friday. The stock edged up 0.21% ($0.42) to $202.05, after touching an intraday low at $198.93 and an intraday high at $202.14.

Shares of Goldman Sachs Group Inc have risen 20.95% so far in 2019 compared with a 14.94% gain for the benchmark index, S&P 500 (SPX).

In 2018, Goldman Sachs Group’s stock went down 34.43%, thus, it underperformed the S&P 500, which registered a 6.24% loss.

According to CNBC, the deal could be valued between $700 million and $750 million.

Headquartered in California, United Capital has independent financial advisers located in 90 offices across the United States and manages nearly $23 billion of customers’ assets.

An acquisition of United Capital would grant the Wall Street bank access to several thousand affluent and high net worth customers. Currently, the bank’s private wealth management unit serves ultra-rich clients, while its Ayco business provides services to corporate executives.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Goldman Sachs’s stock price, have a median target of $222.50, with a high estimate of $312.00 and a low estimate of $170.00. The median estimate represents a 10.12% upside compared to the closing price of $202.05 on May 10th.

The same media also reported that 14 out of 29 surveyed investment analysts had rated Goldman Sachs’s stock as “Hold”, while 10 – as “Buy”. On the other hand, 3 analysts had recommended selling the stock.

Weekly Pivot Levels

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 – $202.31
R1 – $206.72
R2 – $211.38
R3 – $215.79
R4 – $220.19

S1 – $197.65
S2 – $193.24
S3 – $188.58
S4 – $183.91

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