Financial Sector Update for 03/11/2015: JGW,CGA,NBG
Top Financial Stocks
Financial stocks were mostly higher, with the NYSE Financial Sector Index climbing 0.5% and the S&P Financial 100 Index adding about 0.9%.
In company news, shares of the J.G. Wentworth Company ( JGW ) rose Wednesday after the structured settlements company announced a deal to acquire WestStar Mortgage Inc for $54 million in cash and stock.
WestStar is licensed to operate in 40 states, closing around $1.5 billion of new loan originations during 2014 and selling or securitizing roughly half of those loans to government-backed organizations with the other half sold or securitized with third-party institutional investors.
Under terms of the transaction, JGW will pay a minimum $40.5 million - or at least 75% - of the purchase price in cash. It said the deal should boost its adjusted net income by 15% to 20% on an ongoing basis.
JGW shares were ahead by about 3% at $10.50 apiece, earlier topping out at $10.87 a share. The stock has traded within a 52-week range of $8.65 to $19.35 a share, falling almost 43% over the past 12 month prior to Wednesday's price gain.
In other sector news,
(+) GCA, (+13.2%) Q4 revenue rises 8.3% over year-ago levels to $152.1 mln, topping Street view by $9.65 mln. Cash EPS of $0.23 trail estimates by $0.01 per share. Expects single-digit growth in payments business; double-digit growth for games.
(-) NBG, (-9.3%) Discloses plans by Finansbank to sell 800,000 of its shares now owned by NBG as part of a broader offering of 7.15 mln shares by Finansbank. NBG also will offer up to 1.59 mln shares to cover possible overallotments.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.