Goldman Sachs share price forecast after Q3 results

The Goldman Sachs Group, Inc. (NYSE: GS) shares continue to trade in a bull market after better than expected third-quarter results. Strong results were driven by robust investment banking, but there is increasing uncertainty around a number of factors.

Goldman Sachs returned $1.7 billion to its shareholders

Goldman Sachs reported better than expected third-quarter results on Friday; total revenue has increased by 26.3% Y/Y to $13.61 billion, while GAAP EPS was $14.93 (beats by $4.89). Total revenue has increased above the expectations (+2 billion), and the board of directors declared a $2.00 share quarterly dividend payable on December 30.

Strong results were driven by robust investment banking, and it is important to say that the Investment Banking segment had its second-highest quarterly net revenues of $3.70 billion.

Global Markets segment had quarterly net revenue of $5.61 billion, reflecting strong performance in equities, while the Consumer & Wealth Management segment exceeded $2 billion for the first time, up 35% from Q3 2020.

Goldman Sachs returned $1.7 billion to its shareholders during the third quarter, which consisted of $1 billion of common share repurchases (2.5M shares at an average cost of $395.28) and $700 million through common stock dividends. David Solomon, Chairman and Chief Executive Officer of Goldman Sachs, said:

Another positive information is that operating expenses fell 24% compared to the second quarter and they amounted to $6.59 billion. Goldman Sachs shares could advance above the current price levels in the upcoming weeks; still, there is increasing uncertainty around a number of factors.

The Delta variant of the coronavirus continues to pose downside risks; the U.S.-China relationship remains complicated, a supply chains crisis represents a serious issue for the global economy, and taken together, these items have the potential to be a headwind to growth.

The Goldman Sachs investment banking segment boosted from a post-COVID focus on corporate expansion, but the global recovery could be hit again.

Goldman Sachs shares remain in a bull market

The critical support levels are $380 and $360; $420 and $440 represent the current resistance levels. If the price jumps above $415, it would be a signal to trade Goldman Sachs shares, and the next target could be around $420 resistance.

On the other side, if the price falls below $380 support, it would be a strong "sell" signal, and the next target could be around $360.

Summary

Goldman Sachs reported better than expected third-quarter results on Friday, and it is important to say that the bank returned $1.7 billion to its shareholders during the third quarter. Goldman Sachs shares remain in a bull market, but there is increasing uncertainty around a number of factors.