Goldman Sachs shares rebound on Thursday, group fined GBP 34.3 million by FCA over errors in transaction reporting

A record fine of GBP 34.3 million has been imposed on Goldman Sachs International by Britain’s Financial Conduct Authority, as the US investment bank failed to ensure accurate reporting of transactions over a ten-year period, the regulator said on Thursday.

Goldman Sachs shares closed higher for the tenth time in the past fifteen trading sessions in New York on Thursday. The stock went up 0.61% ($1.15) to $191.18, after touching an intraday high at $191.91, or a price level not seen since March 26th ($192.41).

Shares of Goldman Sachs Group Inc have risen 14.44% so far in 2019 compared with a 12.31% gain for the benchmark index, S&P 500 (SPX).

In 2018, Goldman Sachs Group’s stock went down 34.43%, thus, it underperformed the S&P 500, which registered a 6.24% loss.

The Financial Conduct Authority said that Goldman Sachs had made more than 220 million errors in its transaction reporting during the period between 2007 and 2017.

In order to avoid a penalty of GBP 49 million and qualify for a 30% discount, the US bank has agreed to find a swift resolution to the matter.

“We are pleased to have resolved this legacy matter. We dealt with the issues proactively at the time and have made significant investments across the period to develop and enhance our reporting procedures,” the Wall Street bank said in a statement, cited by Reuters.

Regulatory authorities require accurate reporting on trades, so that they can take measures against market abuses and financial crime.

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Goldman Sachs’s stock price, have a median target of $227.00, with a high estimate of $312.00 and a low estimate of $190.00. The median estimate represents an 18.74% upside compared to the closing price of $191.18 on March 28th.

The same media also reported that 14 out of 29 surveyed investment analysts had rated Goldman Sachs’s stock as “Hold”, while 10 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Goldman Sachs Group Inc (GS) are presented as follows:

Central Pivot Point – $194.40
R1 – $201.01
R2 – $213.07
R3 – $219.68
R4 – $226.30

S1 – $182.34
S2 – $175.73
S3 – $163.67
S4 – $151.62