The Wall Street Journal reported that Goldman Sachs (NYSE:GS) may acquire a fintech to ramp up its credit card business. However, the bank’s spokesperson denied having any such intention.
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Per the report, Goldman Sachs has shown interest in acquiring Deserve, a cloud-based credit card platform. Earlier, Deserve secured a $250 million credit facility from Goldman Sachs, Waterfall Asset Management, and Cross River.
Along with Deserve, the report highlighted that Goldman Sachs has also shown interest in acquiring another credit card platform, CoreCard Corp. (NYSE:CCRD). Following the news, CCRD stock spiked to a day high of $31.13 on November 8. However, it pared all of its gains later and closed slightly in the red, as the company spokesperson told the WSJ that the bank is not looking for acquisitions in this space.
It’s worth mentioning that Goldman’s credit card business has been supporting its growth. During the last reported quarter, significantly higher credit card balances led to increased net revenues at its consumer banking division.
Is Goldman Sachs a Buy, Sell, or Hold?
On TipRanks, Goldman Sachs stock is a Moderate Buy based on seven Buy, three Hold, and two Sell recommendations. Moreover, analysts’ average price target of $396.91 implies 9% upside potential.
Meanwhile, insiders have been selling GS stock. According to our Insider Trading Activity tool, insiders sold GS stock worth $10.6M in three months. Overall, Goldman Sachs stock has a Neutral Smart Score of five on 10 at TipRanks.