Goldman Sachs shares rebound on Monday, group to acquire Capital Vision Services for $2.7 billion

According to a Monday report by the Wall Street Journal, citing sources with knowledge of the matter, Goldman Sachs Group Inc’s merchant banking division intends to acquire Capital Vision Services LP in a deal estimated at $2.7 billion with the inclusion of debt.

Goldman Sachs shares closed higher for the third time in the past eleven trading sessions in New York on Monday. The stock went up 0.38% ($0.70) to $183.19, after touching an intraday low at $180.80, or a price level not seen since January 15th ($176.40).

After-hours trade saw the shares surging another 1.76% to $186.41.

Shares of Goldman Sachs Group Inc have risen 9.66% so far in 2019 compared with a 9.48% 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.

Capital Vision operates in support of independent optometrists as well as practices affiliated with MyEyeDr., an optometry practice management company.

Capital Vision will be acquired from Altas Partners LP, a private equity company, and Canadian pension fund Caisse de dépôt et placement du Québec.

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 21.46% upside compared to the closing price of $183.19 on June 3rd.

The same media also reported that 14 out of 28 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 – $186.04
R1 – $189.76
R2 – $197.04
R3 – $200.76
R4 – $204.49

S1 – $178.76
S2 – $175.04
S3 – $167.76
S4 – $160.49