Goldman Sachs Group Inc.NYSE
Thu, Oct. 20, 9:14 AM
- Guggenheim is going with the hot hand, upgrading Morgan Stanley (NYSE:MS) to Buy while downgrading Goldman Sachs (NYSE:GS) to Neutral.
- Morgan is higher by 3.5% YTD, while Goldman is lower by 3.1%, but the difference is far more stark since the Feb. 11 bottom, with MS up 45% and GS ahead just 18.6%.
- On Morgan Stanley, Guggenheim analyst Eric Wasserstrom likes the improved revenue mix and asset composition, and says it's likely to benefit the bank's future stress test and CCAR results, allowing greater capital returns. His $39 price target is 18% above yesterday's close.
- As for Goldman, Wasserstrom takes note of declining M&A volumes following a jump to $4.1T in 2015. He sees volume of just $3.5T this year, and the same for 2017 and 2018. Further, operating leverage has been negative year-to-date, and the stock's valuation has already priced in the bank's expense control initiatives.
- Both stocks are modestly lower premarket alongside a decline in U.S. stock index futures.
Tue, Oct. 18, 2:40 PM
- The stock's higher by 2.1% today after blasting through earnings estimates, but Goldman may have come up shy on a couple of fronts, writes Aaron Back in the WSJ.
- While ROE for the quarter was a healthy 11.2%, it's just 8.7% YTD vs. the minimum 10% bank investors generally like to see.
- With revenues still suspect, cutting expenses and returning capital is a way to boost ROE, but over the year's first nine months the ratio of compensation to revenue rose 100 basis points to 41%.
- Further, Goldman (NYSE:GS) repurchased just $1.3B worth of stock in Q3 - that's less than the previous two quarters, says KBW's Brian Kleinhanzl - and the dividend was held steady at $0.65 vs. expectations for a nickel hike (while most banks give details on capital return plans after getting Fed approval, Goldman does not, leaving investors guessing).
Tue, Oct. 18, 7:48 AM
- Q3 net income of $2.09B or $4.88 per share up from $2.90 per share one year ago. Annualized ROE of 11.2% during quarter and 8.7% for first nine months this year. Book value per share slipped 2.6% to $181.25. CET1 ratio of 14%.
- Investment banking revenues of $1.54B about unchanged from a year ago. Financial advisory revenue of $658M down 19%; underwriting revenue of $879M up 18%; equity revenues higher, though industry-wide activity remained low.
- Institutional Client Services revenue of $3.75B up 17% Y/Y. FICC revenue of $1.96B up 34%, but would have been 49% higher were it not for a DVA gain last year. Equities revenue of $1.78B up 2%.
- Investing & Lending revenue of $1.40B more than a double from last year.
- Investment Management revenue of $1.49B up 4% Y/Y.
- Compensation and benefits expense of $3.21B up 36% Y/Y thanks to the big jump in revenue. Comp and benefits as a percent of revenue of 41% for first nine months of 2016 vs. 40% during same stretch last year.
- CC at 9:30 ET
- Previously: Goldman Sachs beats by $1.09, beats on revenue (Oct. 18)
- GS +1.65% premarket
Tue, Oct. 18, 7:39 AM
Mon, Oct. 17, 5:30 PM
Fri, Oct. 14, 6:49 PM
- More firms are set to climb on the CBS-Viacom deal examination train, as the management team at CBS (CBS -0.2%) is close to hiring Goldman Sachs (GS +1.9%) and JPMorgan Chase (JPM -0.3%) to advise it on a possible re-merger, Bloomberg reports.
- While those banks will advise CEO Les Moonves and the leadership, that's separate from the board's special committee hiring Lazard as it announced last week. CBS could add in other banks as well.
- Earlier today, the special committee at Viacom (VIA -0.3%, VIAB +0.5%) confirmed it was working with Morgan Stanley as well as Allen & Co. and LionTree to look at the deal.
- Meanwhile, while Moonves has said he'd want autonomy in running such a combination, Sumner and Shari Redstone (who control the two companies, and have said they don't intend to give up control) reportedly aren't willing to offer Moonves a stake or voting control in National Amusements, the family holding company.
Fri, Oct. 14, 9:42 AM
- JPMorgan and Citigroup both easily topped estimates thanks to a big rebound in previously-in-the-doldrums markets revenue. JPM is higher by 1%, and Citi by 2%. The read-through is pushing Goldman Sachs (GS +3%), Morgan Stanley (MS +2.7%) and Bank of America (BAC +2.4%) all nicely higher.
- Less capital-markets focused, Wells Fargo also beat forecasts, but not as soundly. As usual of late, it's lagging its TBTF peers, up just 0.3%.
- XLF +1.2%, KRE +1.4%, KBE +1.5%.
- Other individual names: Regions Financial (RF +2.5%), Huntington Bancshares (HBAN +2.1%), KeyCorp (KEY +1.9%), Fifth Third (FITB +1.5%), SunTrust (STI +1.3%), M&T (MTB +1.7%)
Thu, Oct. 13, 9:44 AM
- Be the first on your block to get a loan from Goldman Sachs (NYSE:GS) as regular Joes today will be able to visit the bank's Marcus.com to borrow up to $30K for things like paying down credit card debt, or that new kitchen.
- At the start, at least, only those getting a code from Goldman in the mail will be able to apply (the bank says it's sending invitations to millions).
- Marcus is a big departure for the elite Wall Street bank, but the platform is the centerpiece of Goldman's push into consumer banking (Marcus is named for Goldman founder Marcus Goldman). It's being led by Harit Talwar, who came over from Discover.
- The timing is notable given the difficulties other online lenders like LendingClub (NYSE:LC) and Prosper have run into. Goldman, however, is also a bank, which gives it access to cheap funding (it began offering retail savings accounts earlier this year and has brought in billions in deposits).
Wed, Oct. 5, 3:27 PM
- The continued rise in interest rates - the 10-year yield today breaching 1.70% - is giving additional fuel to the financial sector rally.
- The XLF's 1.7% advance today puts it in a tie with the energy sector's XLE. The S&P 500 is up just 0.45%.
- Banks, insurers, and brokers are all sharply ahead as investors envision the return of spread income. Even Wells Fargo (WFC +2.8%) is in the green - it's in fact atop the TBTF movers.
- Other gainers: Goldman Sachs (GS +2.4%), Morgan Stanley (MS +1.7%), U.S. Bancorp (USB +2.1%), SunTrust (STI +2.5%), PNC Financial (PNC +1.3%), E*Trade (ETFC +2.1%), Voya Financial (VOYA +4.7%), Lincoln National (LNC +2.4%).
Mon, Oct. 3, 7:49 AM
- A consortium of investors has emerged as the leading bidder for Cabela's (NYSE:CAB), sources tell Reuters.
- The group includes Bass Pro Shops, the PE arm of Goldman Sachs (NYSE:GS), and Capital One Financial (NYSE:COF).
- Speculation on a Cabela's buyout has gone on for almost a year after the company opened itself up to considering strategic alternatives.
- CAB +5.59% premarket to $58.00. Shares of the retailer are up 24.5% over the last 52 weeks.
Fri, Sep. 30, 11:37 AM
- The ADRs of Deutsche Bank are higher by 15% on a report it's near settling U.S. mortgage-related charges for just $5.4B (versus the $14B which had previously been floated).
- The move has lifted Europe out of the red, led by Germany's (NYSEARCA:EWG) 1% gain. The Dow's (NYSEARCA:DIA) 1% advance is leading the U.S. averages higher.
- Bank of America (BAC +3.1%), Citigroup (C +3.2%), JPMorgan (JPM +1.7%), Wells Fargo (WFC +0.7%), Goldman Sachs (GS +1.7%), Morgan Stanley (MS +2.9%). XLF +1.5%
Thu, Sep. 29, 4:19 PM
- Privately-held Bass Pro Shops is partnering with the private-equity arm of Goldman Sachs (NYSE:GS), and they're working on a bid with Capital One (NYSE:COF), which is interested in Cabela's (NYSE:CAB) credit card business, according to Reuters' sources.
- Then there's P-E outfit Sycamore Partners which is pairing with Synchrony Financial (NYSE:SYF) to make an offer.
- Binding bids are due this week.
- Cabela's credit card business is called World's Foremost Bank, and it had nearly 2M accounts, $5B in loans, and $502M in revenue last year.
- Cabela's closed the session higher by 2.3%, with all of that gain coming in the last few minutes as this report hit the wires.
Thu, Sep. 29, 3:35 PM
- Deutsche Bank's (DB -6.5%) steep tumble has stabilized a bit over the past couple of hours, but DoubleLine bond guru Jeffrey Gundlach says it's got a ways left to go and to stay away.
- The company is hard to analyze and the prospect of a government bailout, he tells Reuters. The market sell-off "doesn't feel like" it's over by any means.
- "The market is going to push down Deutsche Bank until there is some recognition of support," he says.
- Elsewhere in sliding financials today: BAC -1.1%; C -2.1%; JPM -1.4%; GS -2.7%; MS -2.2%; OTCPK:SCGLY -3.8%.
Thu, Sep. 29, 1:30 PM
- A report that a number of hedge funds are bailing out of their Deutsche Bank exposure has sent that stock sharply lower in the last few minutes, and the move is dragging the big U.S. banks, and in turn, the major averages.
- Deutsche is now lower by more than 7%. Bank of America (BAC -1.2%), Citigroup (C -1.6%), JPMorgan (JPM -1.2%), Goldman Sachs (GS -2.1%), Morgan Stanley (MS -1.9%). The KBE and KRE are each off 1.1%.
- The Dow (DIA -0.9%), S&P 500 (SPY -0.8%), and Nasdaq (QQQ -0.6%).
Wed, Sep. 28, 9:32 AM
- "Large banks are going to be forced to take on more capital," says Dick Bove. "It will make the cost of funding more, not less, expensive. It will reduce the appeal for investors to put money at risk in the banking system."
- Bove is commenting on a weekend announcement from Fed Governor Daniel Tarullo promising future stress tests will be geared to demanding even higher cash buffers for banks. Set to take effect next year, the new rule could raise capital requirements for the largest banks by 3 or 4 percentage points, writes Jeff Cox at CNBC.
- Interested parties: BAC, C, WFC, JPM, GS, MS
- There's good news though, as those lenders with less than $250B in assets won't be subject to the same standards. FBR's Edward Mills calls it a "significant positive" for regionals, which now have more certainly on the process, reduced regulatory expenses, and thus the ability to return more capital to owners.
- Interested parties: RF, ZION, CMA, KEY, FITB, STI, NYCB, HBAN, PNC, BBT, MTB
- ETFs: KRE, KBE, IAT, KBWB, QABA, KBWR, KRU, PSCF, KRS, WDRW, DPST
Tue, Sep. 27, 7:56 AM
- Based in Singapore, Michael Smith is the head of Goldman Sachs' (NYSE:GS) investment banking division in Southeast Asia, and has been with the bank since 2006. He's expected to depart later this year, according to the report.
- Smith's expected exit is not part of the downsizing of Goldman's Asian team in which it's been reported the bank will be cutting nearly 30% of its 300 investment banking jobs in the region.