Zacks Investment Research Downgrades Green Dot (GDOT) to Hold

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Zacks Investment Research cut shares of Green Dot (NYSE:GDOT) from a strong-buy rating to a hold rating in a report issued on Tuesday morning.

According to Zacks, “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 Banking as a Service (BaaS) platform programs are the key drivers of growth. 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. Shares of the company have outperformed its industry in the past year. On the flip side, Green Dot experiences fluctuation in revenues due to seasonal factors. The company has never declared and currently do not have any plan to pay cash dividends on common stock.”

Other analysts have also recently issued reports about the company. BTIG Research upgraded Green Dot from a neutral rating to a buy rating and set a $94.00 target price on the stock in a report on Thursday, January 3rd. Craig Hallum set a $115.00 target price on Green Dot and gave the company a buy rating in a report on Thursday, November 8th. ValuEngine cut Green Dot from a strong-buy rating to a buy rating in a report on Thursday, November 1st. Citigroup set a $105.00 target price on Green Dot and gave the company a buy rating in a report on Friday, November 9th. Finally, Deutsche Bank set a $79.00 target price on Green Dot and gave the company a hold rating in a report on Thursday, November 8th. Five equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. Green Dot currently has an average rating of Buy and an average price target of $91.54.

Shares of NYSE:GDOT traded up $0.02 during midday trading on Tuesday, hitting $81.85. 7,514 shares of the stock were exchanged, compared to its average volume of 405,751. The stock has a market cap of $4.25 billion, a P/E ratio of 51.75 and a beta of 0.98. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.05. Green Dot has a 12 month low of $54.08 and a 12 month high of $93.00.

Green Dot (NYSE:GDOT) last released its quarterly earnings results on Wednesday, November 7th. The financial services provider reported $0.38 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.25 by $0.13. The company had revenue of $230.58 million for the quarter, compared to analysts’ expectations of $223.95 million. Green Dot had a return on equity of 14.80% and a net margin of 11.47%. The business’s quarterly revenue was up 14.4% compared to the same quarter last year. During the same period in the previous year, the business posted $0.34 earnings per share. As a group, equities analysts forecast that Green Dot will post 2.49 EPS for the current year.

In other Green Dot news, COO Kuan Archer sold 22,088 shares of the stock in a transaction that occurred on Tuesday, January 8th. The stock was sold at an average price of $78.87, for a total transaction of $1,742,080.56. Following the transaction, the chief operating officer now directly owns 170,155 shares in the company, valued at approximately $13,420,124.85. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Steven W. Streit sold 29,580 shares of the stock in a transaction that occurred on Thursday, October 18th. The stock was sold at an average price of $76.53, for a total value of $2,263,757.40. Following the transaction, the insider now owns 176,273 shares in the company, valued at $13,490,172.69. The disclosure for this sale can be found here. Insiders have sold a total of 298,932 shares of company stock worth $23,511,003 over the last 90 days. Company insiders own 9.70% of the company’s stock.

Several institutional investors have recently bought and sold shares of the business. Victory Capital Management Inc. acquired a new position in shares of Green Dot during the third quarter worth approximately $56,810,000. BlackRock Inc. raised its position in shares of Green Dot by 7.1% during the third quarter. BlackRock Inc. now owns 7,745,801 shares of the financial services provider’s stock worth $687,983,000 after purchasing an additional 514,669 shares during the period. Voya Investment Management LLC raised its position in shares of Green Dot by 1,683.7% during the second quarter. Voya Investment Management LLC now owns 499,775 shares of the financial services provider’s stock worth $36,678,000 after purchasing an additional 471,756 shares during the period. KAMES CAPITAL plc raised its position in shares of Green Dot by 146.8% during the third quarter. KAMES CAPITAL plc now owns 704,566 shares of the financial services provider’s stock worth $62,580,000 after purchasing an additional 419,034 shares during the period. Finally, FMR LLC raised its position in shares of Green Dot by 284.0% during the second quarter. FMR LLC now owns 409,600 shares of the financial services provider’s stock worth $30,061,000 after purchasing an additional 302,936 shares during the period. Hedge funds and other institutional investors own 85.70% of the company’s stock.

Green Dot Company Profile

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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