Green Dot Corporation : A bullish reaction will come
By Alexandre Nutte
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$28.24 | $29.9 | $26.2 | +5.88% |
For the fourth quarter, the company has published a revenue of $119.7 million and $14 million in net income, $0.33 per share. Besides, the company announced an exclusive distribution agreements with Rite-Aid and Kmart to expand the Green Dot’s reloadable card products. According to Thomson Reuters’ consensus, the average target price is $39.1 which represents a potential gain of 42.7% on the current market price.
From a technical viewpoint, the volatility is high and the short-term trend is bearish. The stock has plunged and now the technical indicators indicate an oversold situation. Besides, the proximity of the USD 27.5 short-term support, already successfully tested, should stop this fall.
In this context, investors could take a long position at USD 27.60 to target the USD 29.9 resistance. A stop-loss will be fixed at USD 26.20.