Goldman Sachs shares close lower on Monday, group to merge private-investing units, WSJ reports

June 18, 2019 7:24 am

According to a report by the Wall Street Journal during the weekend, citing sources with knowledge of the matter, Goldman Sachs Group Inc (GS) is seeking to merge its private-investing units into a new division, which is to have nearly $140 billion in assets.

The Wall Street bank intends to merge four different units investing in private companies, real estate as well as other hardly accessible deals, the report stated.

Goldman Sachs shares closed lower for the third time in the past eleven trading sessions in New York on Monday. The stock went down 0.43% ($0.83) to $190.83, after touching an intraday high at $193.23, or a price level not seen since June 12th ($194.05).

Shares of Goldman Sachs Group Inc have risen 14.24% so far in 2019 compared with a 15.27% gain for the benchmark index, S&P 500 (SPX).

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

Goldman’s existing merchant banking unit, which has invested as much as $100 billion in private assets, will comprise the core of the new division, the WSJ reported.

Other additions to that division will be the bank’s “special situations group”, which has nearly $30 billion in assets, and its strategic investing group, which makes smaller bets on fin-tech startup firms.

In its report, the WSJ added that Goldman’s new division would also encompass the group’s private equity and real estate groups, which currently are incorporated into its asset management division.

According to CNN Money, the 22 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 16.60% upside compared to the closing price of $190.83 on June 17th.

The same media also reported that 13 out of 26 surveyed investment analysts had rated Goldman Sachs’s stock as “Hold”, while 10 – as “Buy”. On the other hand, 2 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 – $192.66
R1 – $196.00
R2 – $200.35
R3 – $203.69
R4 – $207.04

S1 – $188.31
S2 – $184.97
S3 – $180.62
S4 – $176.28

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