Goldman Sachs shares fall for a second straight session on Monday, group discussing purchase of B&B Hotels from PAI Partners

According to a Monday report by Reuters, Goldman Sachs investment fund arm, Goldman Sachs Merchant Banking Division, is discussing a purchase of French chain B&B Hotels from private equity company PAI Partners.

The Financial Times had reported earlier that the arrangement could be estimated at about EUR 1.9 billion. However, no financial details have so far been disclosed by the two entities.

Goldman Sachs shares closed lower for a second consecutive trading session in New York on Monday. The stock edged down 0.10% ($0.19) to $197.24, after touching an intraday low at $195.56, or a price level not seen since May 15th ($193.42).

Shares of Goldman Sachs Group Inc have risen 18.07% so far in 2019 compared with a 13.30% 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.

Last year B&B Hotels generated as much as EUR 580 million in total revenue. Established in 1990, the hotelier operates a network of over 479 hotels in markets such as Europe, Brazil and Morocco and competes with industry representatives such as Accor.

B&B Hotels was acquired by PAI Partners in 2016 in a deal estimated at almost EUR 790 million, a report by Bloomberg stated.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Goldman Sachs’s stock price, have a median target of $222.50, with a high estimate of $312.00 and a low estimate of $170.00. The median estimate represents a 12.81% upside compared to the closing price of $197.24 on May 20th.

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, 3 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 – $196.95
R1 – $200.48
R2 – $203.53
R3 – $207.06
R4 – $210.59

S1 – $193.90
S2 – $190.37
S3 – $187.32
S4 – $184.27