Markets

Financial Sector Update for 08/09/2018: AMAL,WP,WPY.L,DNB,GDOT

Top Financial Stocks

JPM -0.70%

BAC -0.57%

WFC -0.44%

C -1.03%

USB 0.00%

Financial stocks pared some of their prior declines Thursday afternoon, including a less than 0.1% drop for the NYSE Financial Index while shares of financial companies in the S&P 500 were falling almost 0.2%. The Philadelphia Housing Index was rising more than 0.3%.

Among financial stocks moving on news:

+ Amalgamated Bank ( AMAL ) was almost 5% higher late in its first day as a public company, earlier climbing over 7% to a first-day high of $16.64 a share after the commercial bank and a chartered trust company priced its $104.1 million initial public offering of nearly 6.72 million shares of its common stock at $15.50 apiece. Amalgamated also issued a 30-day option to underwriters to buy almost 1.01 million additional shares, which if fully exercised would add another $15.6 million to the gross proceeds. The company did not receive any proceeds from the IPO, with all of the shares sold in the stock sale offered by 14 regional and international boards of the Workers United union along with investment funds affiliated with WL Ross & Co and the Yucaipa Companies LLC.

In other sector news:

+ Dun & Bradstreet ( DNB ) set a new, all-time high of $145.98 a share after the commercial data and analytics company agreed to a $6.9 billion private-equity buyout offer, upstaging below-consensus Q2 financial results. The deal calls on the investor group led by CC Capital and also including Cannae Holdings and funds affiliated with Thomas H. Lee Partners will pay $145 for each Dun and Bradstreet share, representing a 30% premium over the company's stock price on Feb. 12 when it began exploring its strategic options. The investor group also will absorb about $1.5 billion of company debt.

+ Worldpay (WP,WPY.L) raced almost 9% higher on Thursday, touching a new, all-time high of $90.44 a share, after the electronic payments processor reported Q2 financial results exceeding analyst estimates and also raised its Q3 and FY18 forecasts for non-GAAP net income and revenue. Excluding one-time items, Worldpay earned $1.04 per share on $1.0 billion in revenue during the three months ended June 30, beating the Capital IQ consensus by $0.09 per share and $21.2 million, respectively. After increasing its projections, the company's Q3 and FY18 adjusted earnings guidance both topping Wall Street expectations while its revenue outlooks remain in-line with the analyst means.

+ Green Dot ( GDOT ) rose to a record high of $85.50 a share on Thursday, climbing nearly 6%, after reporting Q2 net income of $0.74 per share, topping the Capital IQ consensus by $0.11 per share, while revenue grew 16% year over year to $258.3 million and beating the $250.18 million Street view. It also raised its forecast range for FY18 net income to $3.03 and $3.08 per share from its prior outlook expecting between $2.93 to $3.00 per share and exceeding the analyst mean by at least $0.02 per share. The company also raised its FY18 revenue guidance but remained in-line with the Street consensus.

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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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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