Green Dot (NYSE:GDOT) Stock Price Down 6.9% Following Weak Earnings

Key Points

• Green Dot shares fell 6.9% after quarterly earnings missed expectations, trading as low as $11.90 versus a prior close of $12.59.
• The company reported EPS of $0.05, below the $0.07 consensus estimate, while revenue of $596.41 million exceeded analysts’ $555.87 million forecast.
• Analysts have a consensus Hold rating and an average price target of $16.12; ratings range from Buy to Sell.

Green Dot Corporation (NYSE:GDOT - Get Free Report)'s stock price was down 6.9% during trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $11.90 and last traded at $11.7230. Approximately 90,783 shares changed hands during trading, a decline of 81% from the average session volume of 485,878 shares. The stock had previously closed at $12.59.

The financial services provider reported $0.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.02). Green Dot had a positive return on equity of 6.92% and a negative net margin of 1.14%. The company had revenue of $596.41 million for the quarter, compared to analyst estimates of $555.87 million.

Analyst Ratings Changes

A number of brokerages have issued reports on GDOT. Weiss Ratings reissued a "sell (d-)" rating on shares of Green Dot in a research note on Thursday, October 15th. Zacks Research upgraded Green Dot from a "strong sell" rating to a "hold" rating in a research note on Tuesday, October 13th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Green Dot has a consensus rating of "Hold" and an average target price of $16.12.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Walmart Inc. acquired a new position in shares of Green Dot in the 2nd quarter valued at about $13,172,000. Jacobs Asset Management LLC lifted its holdings in shares of Green Dot by 115.2% in the 1st quarter. Jacobs Asset Management LLC now owns 225,000 shares of the financial services provider's stock worth $2,524,000 after purchasing an additional 120,464 shares during the last quarter. OMERS ADMINISTRATION Corp boosted its position in Green Dot by 167.2% during the 1st quarter. OMERS ADMINISTRATION Corp now owns 330,200 shares of the financial services provider's stock valued at $3,705,000 after purchasing an additional 206,600 shares during the period. Newtyn Management LLC boosted its position in Green Dot by 743.7% during 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. Finally, Rangeley Capital LLC bought a new position in Green Dot during the 1st quarter worth $1,826,000. Institutional investors and hedge funds own 92.56% of the company's stock.

Green Dot Stock Performance

The company has a debt-to-equity ratio of 0.07, a quick ratio of 0.45 and a current ratio of 0.45. The stock has a 50 day moving average of $12.66 and a 200 day moving average of $12.53. The stock has a market capitalization of $670.77 million, a P/E ratio of -23.09 and a beta of 0.93.

About Green Dot

Green Dot Corporation is a financial technology and banking company that provides digital banking, prepaid debit, and payment services in the United States. Through its consumer brands, including Green Dot and GO2bank, the company offers checking accounts, debit cards, direct deposit, mobile banking, bill payment, money transfer, cash deposit, and other everyday financial services.

Green Dot also provides banking-as-a-service and embedded-finance solutions for businesses, financial institutions, and technology companies.

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