Goldman Sachs share price forecast after Q3 results

By: Stanko Iliev
Stanko Iliev
Stanko dedicates himself to providing investors with relevant information they can use to make investment decisions. He loves the… read more.
on Oct 16, 2021
  • Goldman Sachs shares advanced 3.8% on Friday
  • Goldman Sachs reported strong Q3 results
  • Goldman Sachs returned $1.7 billion to its shareholders

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.

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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:

All in our strong performance, tireless focus on our clients, and relentless execution of our strategy strengthened my confidence that we will continue to advance our strategic evolution and deliver higher, more durable returns for our shareholders.

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

Data source: tradingview.com

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.

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