Goldman Sachs Stock Rises on Strong Q2 Earnings and Dividend Hike

Goldman Sachs (GS) stock is higher in Monday’s session after the investment banking giant beat expectations on the top- and bottom-lines for its second quarter and reiterated news of its quarterly dividend hike. In the second quarter ended June 30, Goldman’s net revenue increased 17% year-over-year to $12.7 billion, with earnings per share (EPS) jumping to $8.62 from $3.08 the year-ago period. The bank also raised its quarterly dividend by 9.1% to $3.00 per share. Goldman Sachs is one of the best Dow Jones stocks this year, up more than 26% on a total return basis.

Goldman’s performance in Q2 exceeded analysts’ expectations, with revenue coming in above anticipated at $12.5 billion and beating earnings projections of $8.34 per share. Following the release of the Federal Reserve’s stress test results, the bank announced its dividend increase on June 28. The first dividend at the new rate will come on September 27. Despite the positive outlook, analysts’ price targets for Goldman Sachs are, on average, slightly below current levels. The consensus among analysts is a Buy rating, with an average price target of $469.86.

Financial services firm BofA Global Research holds a bullish stance on GS stock, offering a Buy rating and a $563 price target. This target implies more than a 16% upside potential from the current levels. As Wall Street remains optimistic about the financial stock, investors are closely watching the company’s continued growth in Global Banking & Markets and Asset & Wealth Management.