Markets

Financial Sector Update for 03/11/2015: JGW,CGA,NBG

Top Financial Stocks

JPM +0.87%

BAC +2.25%

WFC +1.26%

C +2.71%

USB +0.32%

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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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