Green Dot (GDOT) Climbs On Buy Back Plans

Green Dot Corporation (NYSE: GDOT)

Green Dot Corporation stock is having a great day in the market today after announcing that a share repurchase program and new agreement with Walmart (NYSE: WMT) has been initiated. Today, we’ll take a look at the share repurchase program, discuss what we’re seeing in the market, and talk about what we can expect to see from GDOT moving forward. So, lets get right to it…

Green Dot Corporation To Repurchase Shares From Walmart

After hours yesterday, Green Dot Corporation made an announcement that they plan to repurchase shares under a new agreement with Walmart. The company said that its board of directors have authorized the company to repurchase shares of common stock in the amount of up to $150 million. Of course, this deal is pending regulatory approval; however, I don’t see any problems with the approval.

During the announcement, the company also explained the details of a new agreement they’ve come to with Walmart. The company has entered into a long-term agreement to continue serving as the program manager and issuing bank for the Walmart MoneyCard; an entire suite of prepaid credit card products.

How GDOT Reacted In The Market

As we tend to see any time positive news comes out about a particular stock, Green Dot Corporation stock is having an amazing day in the market today. The announcement caused a major climb in investor excitement and volume; leading to massive gains. Currently (2:04), GDOT is trading at $21.05 per share after a gain of 37.49% so far today.

What We Can Expect To See Moving Forward

Moving forward, I’ve got an overwhelmingly bullish opinion of Green Dot Corporation stock. Here’s how I see things going in both the short and long term…

  • Short Term – In the short term, investors have plenty to be excited about. The repurchasing program will likely cause an increase in the value of the stock; and the continued work with Walmart will generate more and more profit. While we may see pull backs after today’s massive gains, those pull backs aren’t likely to last long as this one is headed for the top.
  • Long Term – In the long run, I’m also expecting to see great things from Green Dot Corporation stock. First off, the company will be the issuing bank for the entire suite under the Walmart MoneyCard brand. This agreement is likely to generate a massive amount of profit for GDOT moving forward. Also, historically, we’ve seen Green Dot prove time and time again that they are a strong company with incredibly strong management; and most importantly, a plan for growth. Considering everything I’ve seen from GDOT recently, it’s hard to imagine a scenario where the stock will decline on any long term basis. So, when you see the pull backs, consider them great opportunities to get in on long term gains for a low cost.

What Do You Think?

Where do you think GDOT is headed and why? Let us know in the comments below!

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