Green Dot (NYSE:GDOT) Rating Increased to Buy at Zacks Investment Research

Green Dot (NYSE:GDOT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports. The firm currently has a $52.00 target price on the financial services provider’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 6.91% from the company’s current price.

According to Zacks, “Green Dot’s long-term strategic plan to be a ‘New Kind of Bank’ is leading to impressive results. Strength across established product lines and BaaS platform programs act as key growth catalysts. The company’s Banking as a Service or BaaS platform programs are growing very quickly and contributing significantly to its GDV growth, active card growth and revenue growth. Its extended relationship with Walmart is another growth catalyst. Despite such positives, Green Dot faces tough competition from companies across financial services, financial technology services, retail banking, transaction processing and consumer technology industries. It experiences fluctuation in revenues due to seasonal factors. The company does not have any plans to pay cash dividends on common stock. Green Dot’s stock has declined in the past year.”

A number of other equities research analysts have also recently issued reports on GDOT. ValuEngine cut Zumiez from a “hold” rating to a “sell” rating in a research note on Tuesday, July 2nd. Craig Hallum dropped their price objective on Green Dot from $115.00 to $100.00 and set a “buy” rating on the stock in a research note on Thursday, May 9th. Citigroup upgraded Copa from a “neutral” rating to a “buy” rating in a research note on Thursday, May 9th. Needham & Company LLC restated a “buy” rating and issued a $26.00 price target (down previously from $27.00) on shares of Nlight in a research note on Thursday, May 9th. Finally, Loop Capital restated a “buy” rating and issued a $75.00 price target on shares of Green Dot in a research note on Thursday, May 9th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and eight have given a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average target price of $81.21.

Shares of GDOT traded down $0.37 on Tuesday, hitting $48.64. The company’s stock had a trading volume of 609,450 shares, compared to its average volume of 741,881. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.02. The business has a fifty day moving average of $48.69. Green Dot has a fifty-two week low of $41.67 and a fifty-two week high of $93.00. The stock has a market capitalization of $2.61 billion, a price-to-earnings ratio of 19.09 and a beta of 0.98.

Green Dot (NYSE:GDOT) last released its quarterly earnings results on Wednesday, May 8th. The financial services provider reported $1.32 earnings per share for the quarter, topping analysts’ consensus estimates of $1.22 by $0.10. Green Dot had a return on equity of 15.74% and a net margin of 10.56%. The firm had revenue of $340.51 million during the quarter, compared to the consensus estimate of $330.17 million. During the same quarter in the prior year, the firm posted $1.40 EPS. The business’s revenue was up 6.3% on a year-over-year basis. Sell-side analysts expect that Green Dot will post 2.11 EPS for the current year.

In other news, CFO Mark L. Shifke sold 6,250 shares of the stock in a transaction on Thursday, May 2nd. The stock was sold at an average price of $65.00, for a total transaction of $406,250.00. Following the sale, the chief financial officer now directly owns 592,990 shares of the company’s stock, valued at approximately $38,544,350. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Konrad Alt sold 919 shares of the stock in a transaction on Wednesday, May 1st. The stock was sold at an average price of $64.15, for a total value of $58,953.85. Following the sale, the insider now directly owns 77,643 shares in the company, valued at $4,980,798.45. The disclosure for this sale can be found here. In the last 90 days, insiders sold 21,657 shares of company stock worth $1,177,363. 7.80% of the stock is owned by company insiders.

A number of large investors have recently added to or reduced their stakes in GDOT. Hennessy Advisors Inc. bought a new position in shares of Green Dot during the second quarter worth about $1,223,000. Arlington Partners LLC bought a new position in shares of Green Dot during the second quarter worth about $391,000. Scout Investments Inc. raised its position in shares of Green Dot by 94.0% during the second quarter. Scout Investments Inc. now owns 107,325 shares of the financial services provider’s stock worth $5,248,000 after acquiring an additional 52,009 shares during the last quarter. Copper Rock Capital Partners LLC raised its position in shares of Green Dot by 58.5% during the second quarter. Copper Rock Capital Partners LLC now owns 444,976 shares of the financial services provider’s stock worth $21,759,000 after acquiring an additional 164,194 shares during the last quarter. Finally, Retirement Systems of Alabama raised its position in shares of Green Dot by 0.4% during the second quarter. Retirement Systems of Alabama now owns 62,223 shares of the financial services provider’s stock worth $3,043,000 after acquiring an additional 226 shares during the last quarter. 86.34% of the stock is currently owned by institutional investors and hedge funds.

Green Dot Company Profile

Green Dot Corporation operates as a financial technology and bank holding company in the United States. It operates in two segments, Account Services, and Processing and Settlement Services. The company offers deposit account programs, such network-branded reloadable prepaid debit cards under the consumer brand names of GPR cards, consumer and small business checking accounts, network-branded gift cards, secured credit cards, and other financial services.

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