Green Dot (NYSE:GDOT) Stock Falls 6.8% - Time to Sell?

Key Points

• Green Dot shares fell 6.8% to about $11.92, trading below both their 50-day and 200-day moving averages.
• Analyst sentiment is bearish: the stock carries an average “Reduce” rating, including recent downgrades to “Strong Sell,” although the consensus price target of $16.12 implies upside.
• Green Dot missed quarterly EPS expectations ($0.26 versus $0.37) despite revenue exceeding forecasts; the company posted a negative net margin, while institutional investors own 92.56% of its shares.

Green Dot Corporation (NYSE:GDOT - Get Free Report) was down 6.8% during trading on Friday. The company traded as low as $12.21 and last traded at $11.9240. 324,255 shares were traded during mid-day trading, a decline of 36% from the average daily volume of 505,413 shares. The stock had previously closed at $12.79.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Green Dot in a research report on Friday, July 17th. Zacks Research lowered Green Dot from a "hold" rating to a "strong sell" rating in a report on Friday, August 21st. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus target price of $16.12.

Green Dot Stock Performance

The business has a fifty day simple moving average of $13.29 and a two-hundred day simple moving average of $12.69. 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 market cap of $668.55 million, a PE ratio of -23.05 and a beta of 0.82.

Green Dot (NYSE:GDOT - Get Free Report) last posted its earnings results on Monday, August 10th. The financial services provider reported $0.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.37 by ($0.11). Green Dot had a negative net margin of 1.14% and a positive return on equity of 6.92%. The company had revenue of $591.29 million during the quarter, compared to analysts' expectations of $541.16 million. Research analysts anticipate that Green Dot Corporation will post 1.32 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Dimensional Fund Advisors LP grew its stake in shares of Green Dot by 7.8% during the 1st 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 during the period. 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 valued at $16,255,000 after purchasing an additional 1,060,598 shares during the period. CenterBook Partners LP lifted its stake in shares of Green Dot by 406.7% in the 4th quarter. CenterBook Partners LP now owns 1,233,176 shares of the financial services provider's stock valued at $15,797,000 after purchasing an additional 989,823 shares during the period. Walmart Inc. purchased a new stake in Green Dot during the second quarter worth $13,172,000. Finally, M3F Inc. purchased a new stake in Green Dot during the first quarter worth $8,402,000. Hedge funds and other institutional investors own 92.56% of the company's stock.

Green Dot Company Profile

Green Dot Corporation NYSE: GDOT is a financial technology and bank holding company that provides digital banking, payment and financial services to consumers and businesses in the United States. Through its subsidiaries, including Green Dot Bank, the company offers checking and savings accounts, prepaid debit cards, mobile banking tools, direct deposit services and money-transfer products.

Green Dot markets products under its own brands, including GO2bank, and provides program management and banking services for business partners.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.