Goldman Sachs (NYSE:GS) could reorganize its business units, the Wall Street Journal reported. Per the report, the financial services giant could merge its investment banking and trading businesses. Meanwhile, it is going to consolidate its asset and wealth management units into another unit.
Goldman Sachs is scheduled to announce its Q3 financials on October 18 before the market opens, and the banking giant may announce further details during the conference call.
Analysts expect Goldman Sachs to report earnings of $7.75 per share in Q3, significantly lower than the $14.93 reported in the prior-year period.
The lower underwriting and advisory revenues amid a decline in deals and macro headwinds could hurt its financials. Meanwhile, higher provisions for credit losses compared to the prior year will likely hurt the bottom line.
Is Goldman Sachs Stock a Buy?
Ahead of Q3 earnings, GS stock commands a Moderate Buy consensus rating on TipRanks based on eight Buy, three Hold, and two Sell recommendations. Meanwhile, its price target of $392.42 implies 30.8% upside potential.
Further, TipRanks’ data shows that hedge funds have a positive outlook on GS stock. Hedge funds bought 513.4K GS stock last quarter. However, insiders sold Goldman Sachs stock worth $5.6M during the same period.
Overall, Goldman Sachs stock, which has declined by about 20% year-to-date, has an Outperform Smart Score of nine out of 10 on TipRanks.
