Green Dot (GDOT) Cut to Hold at Zacks Investment Research

Green Dot (NYSE:GDOT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday, Zacks.com reports.

According to Zacks, “Green Dot’s first-quarter 2019 earnings and revenues surpassed the Zacks Consensus Estimate. The company's long-term strategic plan to be a ‘New Kind of Bank’ is leading to impressive results. Strength across established product lines and BaaS platform programs act as key growth catalysts. The company’s Banking as a Service or BaaS platform programs are growing very quickly and contributing significantly to its GDV growth, active card growth and revenue growth. Its extended relationship with Walmart is another growth catalyst. Despite such positives, Green Dot faces tough competition from companies across financial services, financial technology services, retail banking, transaction processing and consumer technology industries. It experiences fluctuation in revenues due to seasonal factors. The company does not have any plans to pay cash dividends on common stock. The stock has declined in the past six months.”

Other research analysts have also issued reports about the company. ValuEngine lowered Green Dot from a “buy” rating to a “hold” rating in a research report on Thursday, May 9th. Craig Hallum decreased their price objective on Green Dot from $115.00 to $100.00 and set a “buy” rating on the stock in a research report on Thursday, May 9th. Loop Capital reiterated a “buy” rating and issued a $75.00 price objective on shares of Green Dot in a research report on Thursday, May 9th. Guggenheim lowered Green Dot from a “buy” rating to a “neutral” rating in a research report on Thursday, May 9th. Finally, SunTrust Banks decreased their price objective on Green Dot to $70.00 and set a “buy” rating on the stock in a research report on Thursday, May 9th. Seven equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. Green Dot presently has an average rating of “Buy” and an average target price of $82.71.

NYSE GDOT traded up $1.30 during trading hours on Tuesday, reaching $48.19. 6,752 shares of the company’s stock were exchanged, compared to its average volume of 803,252. The firm has a market cap of $2.47 billion, a PE ratio of 19.07 and a beta of 0.74. Green Dot has a one year low of $41.67 and a one year high of $93.00. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.04 and a quick ratio of 1.03.

Green Dot (NYSE:GDOT) last released its quarterly earnings results on Wednesday, May 8th. The financial services provider reported $1.32 EPS for the quarter, topping the Zacks’ consensus estimate of $1.22 by $0.10. The business had revenue of $340.51 million for the quarter, compared to analyst estimates of $330.17 million. Green Dot had a return on equity of 15.74% and a net margin of 10.56%. Green Dot’s revenue for the quarter was up 6.3% on a year-over-year basis. During the same period in the prior year, the company earned $1.40 EPS. As a group, equities analysts expect that Green Dot will post 2.81 earnings per share for the current year.

In other news, CFO Mark L. Shifke sold 1,250 shares of the firm’s stock in a transaction on Monday, May 6th. The stock was sold at an average price of $65.11, for a total value of $81,387.50. Following the transaction, the chief financial officer now directly owns 591,740 shares in the company, valued at approximately $38,528,191.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CRO Brett Narlinger sold 5,000 shares of the firm’s stock in a transaction on Monday, February 25th. The stock was sold at an average price of $67.63, for a total value of $338,150.00. Following the completion of the transaction, the executive now owns 84,282 shares in the company, valued at $5,699,991.66. The disclosure for this sale can be found here. Insiders sold a total of 107,427 shares of company stock worth $6,612,055 over the last 90 days. 7.80% of the stock is owned by corporate insiders.

Large investors have recently bought and sold shares of the company. Ffcm LLC acquired a new stake in Green Dot during the 4th quarter worth $27,000. Legacy Financial Advisors Inc. acquired a new stake in Green Dot during the 4th quarter worth $29,000. Pearl River Capital LLC acquired a new stake in Green Dot during the 4th quarter worth $40,000. Tortoise Index Solutions LLC acquired a new stake in Green Dot during the 1st quarter worth $43,000. Finally, Manchester Capital Management LLC acquired a new stake in Green Dot during the 1st quarter worth $53,000. Institutional investors and hedge funds own 87.97% of the company’s stock.

About Green Dot

Green Dot Corporation operates as a financial technology and bank holding company in the United States. It operates in two segments, Account Services, and Processing and Settlement Services. The company offers deposit account programs, such network-branded reloadable prepaid debit cards under the consumer brand names of GPR cards, consumer and small business checking accounts, network-branded gift cards, secured credit cards, and other financial services.

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