Green Dot (NYSE:GDOT) Shares Gap Up Following Earnings Beat

Key Points

• Green Dot Corporation reported quarterly earnings of $0.40 per share, exceeding the consensus estimate of $0.17, while revenue reached $501.16 million, above expectations of $496.49 million.
• Following the strong earnings announcement, Green Dot's stock price rose significantly, gapping up from a previous close of $9.93 to an opening price of $11.98.
• Analysts have reacted positively, with upgrades to ratings and price targets, resulting in an average rating of "Moderate Buy" and an average price target of $12.00 for the stock.

Shares of Green Dot Corporation (NYSE:GDOT - Get Free Report) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $9.93, but opened at $11.98. Green Dot shares last traded at $12.89, with a volume of 560,289 shares changing hands.

The financial services provider reported $0.40 EPS for the quarter, beating the consensus estimate of $0.17 by $0.23. The company had revenue of $501.16 million for the quarter, compared to the consensus estimate of $496.49 million. Green Dot had a negative net margin of 1.24% and a positive return on equity of 9.93%. The firm's revenue was up 23.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.25 EPS.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Wall Street Zen upgraded shares of Green Dot from a "hold" rating to a "buy" rating in a report on Friday, June 6th. Barclays upped their target price on shares of Green Dot from $7.00 to $10.00 and gave the stock an "underweight" rating in a research note on Monday, May 12th. Keefe, Bruyette & Woods upped their target price on shares of Green Dot from $11.00 to $12.00 and gave the stock a "market perform" rating in a research note on Friday, July 11th. Finally, Northland Securities set a $16.00 target price on shares of Green Dot in a research note on Tuesday. One analyst has rated the stock with a sell rating, one has assigned a hold rating, three have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $13.00.

Insider Activity

In other news, insider Christian Devin Ruppel sold 27,931 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $12.39, for a total transaction of $346,065.09. Following the transaction, the insider directly owned 226,656 shares in the company, valued at approximately $2,808,267.84. This trade represents a 10.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On Green Dot

A number of hedge funds and other institutional investors have recently modified their holdings of GDOT. Brooklyn Investment Group boosted its stake in shares of Green Dot by 350,400.0% during the first quarter. Brooklyn Investment Group now owns 3,505 shares of the financial services provider's stock valued at $30,000 after purchasing an additional 3,504 shares in the last quarter. Virtus Advisers LLC bought a new position in shares of Green Dot during the second quarter valued at approximately $33,000. GAMMA Investing LLC boosted its stake in shares of Green Dot by 152.0% during the first quarter. GAMMA Investing LLC now owns 5,663 shares of the financial services provider's stock valued at $48,000 after purchasing an additional 3,416 shares in the last quarter. Ameritas Investment Partners Inc. boosted its stake in shares of Green Dot by 18.6% during the second quarter. Ameritas Investment Partners Inc. now owns 5,478 shares of the financial services provider's stock valued at $59,000 after purchasing an additional 861 shares in the last quarter. Finally, Tower Research Capital LLC TRC boosted its stake in shares of Green Dot by 23.1% during the second quarter. Tower Research Capital LLC TRC now owns 6,504 shares of the financial services provider's stock valued at $70,000 after purchasing an additional 1,221 shares in the last quarter. 92.56% of the stock is currently owned by institutional investors.

Green Dot Price Performance

The stock's 50-day moving average is $10.64 and its 200 day moving average is $9.18. The company has a debt-to-equity ratio of 0.07, a current ratio of 0.69 and a quick ratio of 0.58. The company has a market cap of $733.88 million, a PE ratio of -30.39 and a beta of 0.75.

Green Dot Company Profile

Green Dot Corporation, a financial technology and registered bank holding company, provides various financial services to consumers and businesses in the United States. It operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services. The company provides deposit account programs, including consumer and small business checking account products, network-branded reloadable prepaid debit cards and gift cards, and secured credit programs.