Janney Montgomery Scott Downgrades Green Dot Corp. to Sell (GDOT)
Green Dot Corp. (NASDAQ:GDOT) was downgraded by equities researchers at Janney Montgomery Scott from a “neutral” rating to a “sell” rating in a research report issued on Wednesday, TheFlyOnTheWall.com reports. They currently have a $15.00 price target on the stock. Janney Montgomery Scott’s target price would indicate a potential downside of 30.59% from the stock’s previous close.
The analysts wrote, “We are downgrading the shares of Green Dot to Sell, from Neutral, due to intensifying competition from firms with significantly more resources, such as American Express (AXP – $75.25; Neutral, Janney analyst Sameer Gokhale). Last week, American Express announced the launch of a new reloadable prepaid card, branded Serve, in retail stores such as CVS and 7-11 (which will offer zero-fee cash reloads), while the card will have a low $1 monthly maintenance fee. By comparison, Green Dot cards distributed through Walmart (WMT – $74.37; Buy, Janney analyst David Strasser), branded as the Walmart MoneyCard, are priced higher ($3 reload fee and $3 monthly maintenance fee). Paying a fee to reload cash onto a card is an irritant to most consumers, and retailers are beginning to turn to zero-fee reloads as a tool to drive foot traffic. Moreover, new entrants are differentiating on price given that the feature set of reloadable cards has been sufficiently built out (e.g. bill pay, ATM access, etc).”
A number of other analysts have also recently weighed in on GDOT. Analysts at Susquehanna cut their price target on shares of Green Dot Corp. from $25.00 to $20.00 in a research note to investors on Tuesday. They now have a “neutral” rating on the stock. Separately, analysts at Piper Jaffray Cos. downgraded shares of Green Dot Corp. from an “overweight” rating to a “neutral” rating in a research note to investors on Wednesday, October 9th. They now have a $26.00 price target on the stock, down previously from $28.00. Finally, analysts at BTIG Research raised their price target on shares of Green Dot Corp. from $26.00 to $31.00 in a research note to investors on Friday, September 27th. They now have a “positive” rating on the stock. Two research analysts have rated the stock with a sell rating, sixteen have given a hold rating and two have assigned a buy rating to the company. The company currently has an average rating of “Hold” and a consensus price target of $22.21.
Green Dot Corp. (NASDAQ:GDOT) traded down 5.74% on Wednesday, hitting $20.37. 1,873,963 shares of the company’s stock traded hands. Green Dot Corp. has a 52 week low of $9.61 and a 52 week high of $26.61. The stock’s 50-day moving average is $24.60 and its 200-day moving average is $20.65. The company has a market cap of $745.6 million and a P/E ratio of 20.33.
Green Dot Corp. (NASDAQ:GDOT) last posted its quarterly earnings results on Tuesday, July 30th. The company reported $0.33 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.29 by $0.04. The company had revenue of $142.60 million for the quarter, compared to the consensus estimate of $135.10 million. During the same quarter last year, the company posted $0.35 earnings per share. Green Dot Corp.’s revenue was up 3.6% compared to the same quarter last year. On average, analysts predict that Green Dot Corp. will post $1.18 earnings per share for the current fiscal year.
Green Dot Corporation (NASDAQ:GDOT) is a bank holding company.
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