Green Dot (NYSE:GDOT) Shares Gap Up on Strong Earnings

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.

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 traded.

The financial services provider reported $0.40 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.23. The company had revenue of $501.16 million for the quarter, compared to analysts' expectations of $496.49 million. Green Dot had a positive return on equity of 8.82% and a negative net margin of 0.31%. The business's quarterly revenue was up 23.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.25 earnings per share.

Analyst Upgrades and Downgrades

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

Institutional Investors Weigh In On Green Dot

Several large investors have recently made changes to their positions in GDOT. Topline Capital Management LLC bought a new position in shares of Green Dot in the fourth quarter valued at approximately $57,209,000. Vanguard Group Inc. boosted its holdings in Green Dot by 2.0% in the 4th quarter. Vanguard Group Inc. now owns 3,584,651 shares of the financial services provider's stock valued at $38,141,000 after purchasing an additional 71,534 shares during the period. Dimensional Fund Advisors LP boosted its holdings in Green Dot by 20.8% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,114,292 shares of the financial services provider's stock valued at $22,496,000 after purchasing an additional 363,831 shares during the period. Geode Capital Management LLC boosted its holdings in Green Dot by 0.5% in the 2nd quarter. Geode Capital Management LLC now owns 1,280,956 shares of the financial services provider's stock valued at $13,812,000 after purchasing an additional 5,933 shares during the period. Finally, American Century Companies Inc. boosted its holdings in Green Dot by 18.5% in the 1st quarter. American Century Companies Inc. now owns 1,234,050 shares of the financial services provider's stock valued at $10,415,000 after purchasing an additional 193,016 shares during the period. 92.56% of the stock is owned by hedge funds and other institutional investors.

Green Dot Stock Performance

The company's fifty day simple moving average is $10.31 and its 200 day simple moving average is $9.05. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.07. The stock has a market capitalization of $722.13 million, a P/E ratio of -100.92 and a beta of 0.75.

About Green Dot

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.

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