Goldman Sachs: Insider Confidence in a Tariff-Tossed Market

The Trump administration’s 2025 tariff rollout has sent shockwaves through global markets, triggering volatility and uncertainty. Amid this turmoil, one institution stands out: Goldman Sachs (NYSE:GS). Insiders and institutional investors are buying shares of the financial titan, betting on its ability to weather the storm—and even profit from it. Let’s dissect why Goldman is emerging as a rare bright spot in this turbulent landscape.

The Financial Foundation: Outperforming in a Slumping Market

Goldman Sachs’ Q1 2025 earnings report provided a stark contrast to the broader market’s struggles. The bank reported an adjusted EPS of $14.12, crushing estimates of $12.35, while revenue surged to $15.06 billion, narrowly exceeding expectations. The real story, however, lies in its divisions:
- Banking and Markets: Revenue rose 10% year-over-year to $10.71 billion, driven by a staggering 27% jump in equity trading revenue to $41.9 billion. This growth reflects increased market volatility tied to tariff-related uncertainty, which Goldman’s traders are capitalizing on.
- Asset and Wealth Management (A&WM): While this segment faces slower growth due to tariff-driven economic anxiety, its scale and diversification act as a stabilizer.

Insider Buying: A Vote of Confidence

The Insider Monkey analysis highlights that Goldman’s shares saw significant insider purchases between April 2 and April 21, 2025. This activity isn’t trivial: Ken Fisher’s portfolio holds a $3.52 billion stake in Goldman, signaling institutional confidence. The firm’s forward P/E ratio of 11.39—well below the 20 threshold used in the analysis—supports its value proposition.

Analysts Are Divided, but the Fundamentals Hold

Wells Fargo’s Mike Mayo maintained an Overweight rating on Goldman but lowered his price target from $680 to $650, citing concerns about weaker investment banking and A&WM performance. Yet, the analyst acknowledges upside potential if Goldman can boost A&WM efficiency and optimize capital deployment.

Why Institutional Investors Are Rooting for Goldman

Goldman’s diversified business model is its secret weapon. With operations spanning investment banking, consumer banking, trading, and asset management, it’s less reliant on any single revenue stream. This resilience is critical in a tariff-driven environment where sectors like manufacturing and tech face headwinds.

Moreover, 81 hedge funds hold Goldman’s stock, a testament to its status as a “go-to” defensive play. Its 2.48% dividend yield and consistent free cash flow further appeal to investors seeking stability.

The Tariff Trade-Off: Stability vs. AI’s Volatility

While Goldman’s fundamentals are strong, the Insider Monkey report cautions that investors shouldn’t overlook the AI sector’s potential for higher returns. One unnamed AI stock, for instance, has surged since early 2025, outperforming giants like NVIDIA (NVDA) and Broadcom (AVGO), which have fallen ~25%.

Yet Goldman’s 373.4% return since 2014—achieved by mimicking hedge fund strategies—suggests its diversified profile and institutional backing offer a safer bet in uncertain times.

Conclusion: A Steady Hand in a Volatile Market

Goldman Sachs’ inclusion among the “most expensive stocks insiders are buying” is no accident. Its $15 billion revenue beat, diversified operations, and institutional support underscore its ability to navigate tariff-driven turbulence. While AI stocks may offer growth, Goldman’s 11.39 forward P/E, $3.52 billion institutional stake, and 2.48% dividend yield make it a compelling choice for investors seeking stability.

The key question remains: Can Goldman sustain its momentum in A&WM and capital management? If it can, its stock could outperform even as the broader market braces for tariffs. For now, the insiders’ bets—and the data—suggest they’re right to be confident.