Green Dot Corp (NYSE:GDOT) has witnessed significant stock transactions by Topline Capital Management, LLC, as reported in a recent SEC filing. The investment management firm, led by Collin McBirney, acquired a total of 178,302 shares over two days, valued at approximately $1.94 million. The purchases occurred on November 8 and 9, with prices ranging from $10.72 to $10.94 per share.
Following these acquisitions, Topline Capital Management now holds a total of 6,335,967 shares of Green Dot Corp. The transactions were made indirectly through Topline Capital Partners (WA:CPAP), LP, a Delaware limited partnership, in which Topline Capital Management acts as the investment manager and general partner.
These transactions highlight Topline Capital's continued interest in Green Dot, a financial technology and bank holding company.
In other recent news, Green Dot Corp. reported a strong third quarter for 2024, marked by a 16% increase in non-GAAP revenue and a 19% rise in adjusted EBITDA year-over-year. The company's new embedded finance platform, ARC, played a significant role in this growth, contributing to the success of the B2B segment. Furthermore, Green Dot experienced a rise in active accounts for the first time since Q1 2021.
Despite facing challenges in the retail channel, the company raised its full-year revenue guidance to between $1.65 billion and $1.7 billion. However, Green Dot adjusted its full-year adjusted EBITDA guidance slightly downward. The company attributes its expected Q4 revenue growth and improved adjusted EBITDA margins to the new PLS program.
Yet, the company also anticipates a low single-digit decline in Q4 for the Consumer Services segment and flat to slightly down revenue for the Money Movement segment. On the brighter side, the B2B segment is driving growth with significant partnerships and expects a low 30% revenue growth in Q4. These are recent developments that investors should consider.
InvestingPro Insights
Green Dot Corp's recent stock acquisitions by Topline Capital Management come at an interesting time for the company. According to InvestingPro data, Green Dot's market capitalization stands at $577.13 million, with a revenue of $1.63 billion in the last twelve months as of Q3 2023. The company has shown a revenue growth of 10.45% during this period, indicating a positive trend in its business operations.
However, investors should note that Green Dot is currently not profitable, with a negative operating income of $4.77 million in the last twelve months. This is reflected in the company's price-to-earnings (P/E) ratio of -10.85, suggesting that the company is currently operating at a loss.
Despite these challenges, InvestingPro Tips indicate that net income is expected to grow this year, and analysts predict the company will return to profitability. This optimistic outlook might explain Topline Capital's recent stock acquisitions, as they may be positioning themselves for a potential turnaround.
It's worth noting that Green Dot's stock has taken a significant hit over the last week, with a 1-week price total return of -7.74%. However, the 1-year price total return stands at an impressive 38.63%, suggesting longer-term investor confidence.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Green Dot Corp, providing a more comprehensive view of the company's financial health and future prospects.
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