Green Dot Corporation (NYSE: GDOT) stock fell -3.39% on Monday to $14.27 against a previous-day closing price of $14.77. With 0.63 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.32 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $14.54 whereas the lowest price it dropped to was $14.06. The 52-week range on GDOT shows that it touched its highest point at $21.37 and its lowest point at $13.05 during that stretch. It currently has a 1-year price target of $20.67. Beta for the stock currently stands at 1.07.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GDOT was up-trending over the past week, with a rise of 6.18%, but this was down by -9.28% over a month. Three-month performance dropped to -26.59% while six-month performance fell -9.68%. The stock lost -29.08% in the past year, while it has lost -9.80% so far this year. A look at the trailing 12-month EPS for GDOT yields 0.90 with Next year EPS estimates of 2.12. For the next quarter, that number is 0.22. This implies an EPS growth rate of 39.50% for this year and 14.48% for next year. EPS is expected to grow by 12.90% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -4.80%.
Float and Shares Shorts:
At present, 52.19 million GDOT shares are outstanding with a float of 50.43 million shares on hand for trading. On Aug 30, 2023, short shares totaled 1.4 million, which was 2.67% higher than short shares on Jul 30, 2023. In addition to Mr. George W. Gresham as the firm’s CEO, Pres & Director, Mr. Jess Unruh serves as its Chief Financial Officer.
Through their ownership of 97.22% of GDOT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.15% of GDOT, in contrast to 44.06% held by mutual funds. Shares owned by individuals account for 31.07%. As the largest shareholder in GDOT with 11.25% of the stake, BlackRock Fund Advisors holds 5,889,814 shares worth 5,889,814. A second-largest stockholder of GDOT, The Vanguard Group, Inc., holds 5,652,124 shares, controlling over 10.80% of the firm’s shares. Starboard Value LP is the third largest shareholder in GDOT, holding 5,294,110 shares or 10.11% stake. With a 6.17% stake in GDOT, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 3,230,262 shares are owned by the mutual fund manager. The T Rowe Price Small Cap Value Fund, which owns about 4.66% of GDOT stock, is the second-largest Mutual Fund holder. It holds 2,440,998 shares valued at 36.22 million. Vanguard Total Stock Market ETF holds 2.63% of the stake in GDOT, owning 1,377,254 shares worth 20.44 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, GDOT reported revenue of $362.77M and operating income of $23.94M. The EBITDA in the recently reported quarter was $40.16M and diluted EPS was $0.27.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GDOT since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With GDOT analysts setting a high price target of $25.00 and a low target of $16.00, the average target price over the next 12 months is $20.67. Based on these targets, GDOT could surge 75.19% to reach the target high and rise by 12.12% to reach the target low. Reaching the average price target will result in a growth of 44.85% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded GDOT stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 656 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 494,183 while 42,073 shares were sold.