Thursday, March 19, 2015

Goldman Sachs: How To Play The Mysterious Capital Return Plan


Summary

  • Goldman Sachs had to resubmit the capital return plan, leaving a lot unknown about the approved stock buyback plan.
  • The investment bank hiked the dividend by $0.05 to a yield of 1.4%.
  • Investors should pay less attention to the stock buyback plan and more attention to the cheap valuation.
Of all the major financial institutions, Goldman Sachs (NYSE:GS) is the one that doesn't disclose the stock buyback plan approved after the Comprehensive Capital Analysis and Review, or CCAR. Though passing the stress test, the investment bank had to revise its capital return plan, leaving most analysts questioning whether it will reduce the stock repurchase amounts of the last couple of years.

Read the full article at Seeking Alpha.


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