In a recent series of transactions, Topline Capital Management, LLC, and its managing member, Collin McBirney, have sold a significant portion of their holdings in Green Dot Corp (NYSE:GDOT). According to a Form 4 filing with the Securities and Exchange Commission, the sales occurred between December 27 and December 31, 2024, involving a total of 959,180 shares of common stock. The sales come at a time when Green Dot, with a market capitalization of $570 million, is trading below its Fair Value according to InvestingPro analysis, with analyst price targets ranging from $10 to $15.
The shares were sold at prices ranging from $10.44 to $10.54 per share, resulting in a total transaction value of approximately $10,071,696. After these transactions, the remaining shares owned by the reporting persons totaled 5,376,787. These transactions were conducted through Topline Capital Partners (WA:CPAP), LP, a Delaware limited partnership associated with Topline Capital Management. While the company currently maintains a FAIR financial health score, analysts expect net income growth in the coming year, with comprehensive details available in the Pro Research Report covering this fintech player.
The filing notes that both Topline Capital Management and Collin McBirney disclaim beneficial ownership of the shares beyond their pecuniary interest, as indicated in the footnotes of the report.
In other recent news, Green Dot Corp. has reported a successful third quarter in 2024, marked by a 16% increase in non-GAAP revenue and a 19% rise in adjusted EBITDA year-over-year. This strong performance was partly due to the success of the company's new embedded finance platform, ARC, and an increase in active accounts, a first since the first quarter of 2021. Despite facing challenges in the retail channel, Green Dot has revised its full-year revenue guidance upwards to between $1.65 billion and $1.7 billion, while slightly lowering its full-year adjusted EBITDA guidance.
These recent developments also include an anticipated modest revenue growth and improved adjusted EBITDA margins in the fourth quarter. The company expects the full-year adjusted EBITDA to be between $164 million and $166 million. However, ongoing retail channel issues have led to a downward adjustment in full-year adjusted EBITDA guidance.
The B2B segment, driven by significant partnerships and the launch of ARC, is expected to propel growth with low 30% revenue growth in the fourth quarter. Despite positive strides, the company adjusted its full-year adjusted EBITDA guidance downward due to slight revenue declines in the Money Movement segment. Green Dot remains committed to improving performance and expanding its brand portfolio through strategic investments in embedded finance.
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