Green Dot (NYSE:GDOT) Stock Falls 6.9% Following Weak Earnings

Shares of Green Dot Corporation (NYSE:GDOT) dropped 6.9% during mid-day trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $11.90 and last traded at $11.7230. Approximately 90,783 shares were traded during trading, a decline of 81% from the average session volume of 485,878 shares. The stock had previously closed at $12.59.

The financial services provider reported $0.05 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.02). The firm had revenue of $596.41 million during the quarter, compared to the consensus estimate of $555.87 million. Green Dot had a negative net margin of 1.14% and a positive return on equity of 6.92%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on GDOT shares. Zacks Research upgraded Green Dot from a “strong sell” rating to a “hold” rating in a research report on Tuesday, October 13th. Weiss Ratings restated a “sell (d-)” rating on shares of Green Dot in a research report on Thursday, October 15th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Green Dot currently has a consensus rating of “Hold” and an average price target of $16.12.

Institutional Trading of Green Dot

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Newtyn Management LLC lifted its stake in shares of Green Dot by 743.7% in the 2nd quarter. Newtyn Management LLC now owns 1,203,203 shares of the financial services provider’s stock worth $16,255,000 after acquiring an additional 1,060,598 shares during the period. Walmart Inc. acquired a new position in shares of Green Dot during the second quarter valued at approximately $13,172,000. Alberta Investment Management Corp acquired a new position in shares of Green Dot during the third quarter valued at approximately $9,225,000. Caxton Associates LLP raised its holdings in Green Dot by 399.3% during the first quarter. Caxton Associates LLP now owns 426,789 shares of the financial services provider’s stock worth $4,789,000 after purchasing an additional 341,315 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in Green Dot by 7.8% during the first quarter. Dimensional Fund Advisors LP now owns 3,058,944 shares of the financial services provider’s stock worth $34,322,000 after purchasing an additional 222,293 shares in the last quarter. 92.56% of the stock is currently owned by institutional investors.

Green Dot Stock Performance

The stock has a market cap of $670.77 million, a P/E ratio of -23.09 and a beta of 0.93. The company has a debt-to-equity ratio of 0.07, a current ratio of 0.45 and a quick ratio of 0.45. The company has a fifty day moving average of $12.66 and a 200 day moving average of $12.53.

About Green Dot

Green Dot Corporation is a financial technology and banking company that provides digital banking, prepaid debit, and payment services in the United States. Through its consumer brands, including Green Dot and GO2bank, the company offers checking accounts, debit cards, direct deposit, mobile banking, bill payment, money transfer, cash deposit, and other everyday financial services.

Green Dot also provides banking-as-a-service and embedded-finance solutions for businesses, financial institutions, and technology companies.