Goldman Sachs Group Inc (NYSE:GS), currently trading at $636.90 and near its 52-week high, has announced amendments to its rights of security holders and its articles of incorporation, introducing a new series of preferred stock.
According to InvestingPro analysis, the company is currently slightly undervalued. On January 21, 2025, the company filed a Certificate of Designations with the Delaware Secretary of State, detailing the terms of its 6.850% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series Z, with a liquidation preference of $25,000 per share.
This move could affect common shareholders, as the ability of Goldman Sachs to declare or pay dividends on, or to buy back its common stock, is now contingent upon its ability to service dividends on the new Series Z Preferred Stock. If the company fails to pay dividends on this series, restrictions will apply. Notably, InvestingPro data shows Goldman Sachs has maintained dividend payments for 27 consecutive years, with a current yield of 1.88% and has raised its dividend for 13 straight years.
The newly issued Series Z Preferred Stock forms part of the company's broader financing strategy and is represented by depositary shares, which were offered, issued, and sold under the company's Registration Statement on Form S-3 (File No. 333-269296).
The details of the Series Z Preferred Stock, including the rights and preferences associated with it, are provided in the exhibits filed with the SEC. These documents include the Certificate of Designations of the Series Z Preferred Stock, the form of certificate representing the Series Z Preferred Stock, and the legal opinion of Sullivan & Cromwell LLP concerning the depositary shares.
Goldman Sachs, headquartered in New York, is a leading global investment banking, securities, and investment management firm with a market capitalization of $215.25 billion. This latest financial maneuver is part of its ongoing capital management activities. InvestingPro subscribers have access to 14 additional key insights about Goldman Sachs, including detailed financial health metrics and growth projections, available through the comprehensive Pro Research Report.
This article is based on a recent SEC filing by Goldman Sachs Group Inc.
In other recent news, Goldman Sachs CEO, David Solomon, has emphasized the importance of improved US-China relations. He has also expressed his expectation for a significant increase in deal activity by 2025. In addition, Goldman Sachs has announced a series of promotions within its global banking & markets division, marking a significant shift towards a new leadership generation.
In terms of financial developments, Goldman Sachs has increased CEO Solomon's total annual compensation to $39 million for 2024. Furthermore, the firm has granted significant retention restricted stock units (RSUs) to its top executives, indicating commitment to retain its senior leadership. The company also introduced a Long Term Executive Carried Interest Incentive Program (CIP) aiming to align senior executives' incentives with long-term shareholder interests.
Analysts from Oppenheimer and Keefe, Bruyette & Woods (KBW) have maintained an Outperform rating for Goldman Sachs, following the company's strong fourth-quarter performance. The company reported earnings per share (EPS) of $11.95, surpassing both Oppenheimer's and the consensus estimates.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.