Green Dot (GDOT) Upgraded by Zacks Investment Research to “Strong-Buy”
Zacks Investment Research upgraded shares of Green Dot (NYSE:GDOT) from a hold rating to a strong-buy rating in a research note issued to investors on Wednesday morning. Zacks Investment Research currently has $91.00 price objective on the financial services provider’s stock.
According to Zacks, “Green Dot reported strong third-quarter 2018 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improve year-over-year. Green Dot’s long-term strategic plan to be a ‘New Kind of Bank’ is leading to impressive organic results. Strength across established product lines and BaaS platform programs are the key drivers of growth. Currently, BaaS platform programs are growing very quickly. The company’s longlasting relationship with Walmart is a key catalyst behind its operating revenue growth. A strong cash generation capacity allows the company to pursue strategic acquisitions and invest in growth initiatives. In a year’s time, the stock has outperformed the industry it belongs to. However, Green Dot is experiencing weak year-over-year comps and seasonal fluctuations in revenues. The company has never declared and currently do not have any plan to pay cash dividends on common stock.”
GDOT has been the topic of several other reports. ValuEngine cut shares of Green Dot from a strong-buy rating to a buy rating in a research report on Thursday, November 1st. SunTrust Banks raised their target price on shares of Green Dot to $100.00 and gave the stock a buy rating in a research report on Thursday, August 9th. Craig Hallum set a $115.00 target price on shares of Green Dot and gave the stock a buy rating in a research report on Thursday, November 8th. Citigroup raised their target price on shares of Green Dot from $77.00 to $93.00 and gave the stock a buy rating in a research report on Thursday, August 9th. Finally, Deutsche Bank set a $79.00 target price on shares of Green Dot and gave the stock a hold rating in a research report on Thursday, November 8th. Five research analysts have rated the stock with a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the stock. Green Dot currently has an average rating of Buy and a consensus target price of $91.33.
Green Dot (NYSE:GDOT) last released its earnings results on Wednesday, November 7th. The financial services provider reported $0.38 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.25 by $0.13. Green Dot had a net margin of 11.47% and a return on equity of 14.80%. The business had revenue of $230.58 million for the quarter, compared to analysts’ expectations of $223.95 million. During the same period last year, the company earned $0.34 earnings per share. The company’s quarterly revenue was up 14.4% on a year-over-year basis. As a group, sell-side analysts expect that Green Dot will post 2.4 earnings per share for the current fiscal year.
In other news, insider Steven W. Streit sold 29,580 shares of the business’s stock in a transaction on Thursday, September 27th. The shares were sold at an average price of $87.21, for a total transaction of $2,579,671.80. Following the transaction, the insider now directly owns 283,762 shares of the company’s stock, valued at $24,746,884.02. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, COO Kuan Archer sold 10,000 shares of the business’s stock in a transaction on Friday, August 17th. The stock was sold at an average price of $84.87, for a total transaction of $848,700.00. Following the transaction, the chief operating officer now directly owns 218,457 shares in the company, valued at $18,540,445.59. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 408,582 shares of company stock worth $33,515,882. 9.70% of the stock is currently owned by corporate insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of GDOT. Principal Financial Group Inc. lifted its position in shares of Green Dot by 3.5% during the first quarter. Principal Financial Group Inc. now owns 393,267 shares of the financial services provider’s stock worth $25,232,000 after purchasing an additional 13,240 shares in the last quarter. Xact Kapitalforvaltning AB increased its stake in shares of Green Dot by 18.5% in the second quarter. Xact Kapitalforvaltning AB now owns 7,037 shares of the financial services provider’s stock worth $516,000 after buying an additional 1,100 shares during the last quarter. Bank of Montreal Can bought a new stake in shares of Green Dot in the second quarter worth $165,000. Scout Investments Inc. bought a new stake in shares of Green Dot in the second quarter worth $4,036,000. Finally, Boston Advisors LLC increased its stake in shares of Green Dot by 19.2% in the second quarter. Boston Advisors LLC now owns 299,751 shares of the financial services provider’s stock worth $21,999,000 after buying an additional 48,312 shares during the last quarter. 85.45% of the stock is currently owned by institutional investors and hedge funds.
About Green Dot
Green Dot Corporation, together with its subsidiaries, operates as a pro-consumer bank holding company that provides personal banking for the masses. It operates through two segments, Account Services and Processing, and Settlement Services. The company offers deposit as account programs, such reloadable prepaid debit cards under the consumer brand names of GPR cards, consumer checking accounts, small business checking accounts, network-branded gift cards, secured credit cards, and other financial services.
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