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Financial Sector Update for 07/27/2020: SI,LMND,NWBI,BSIG

Financial stocks continued to struggle in afternoon trading, with the NYSE Financial Index dropping 0.3% while the SPDR Financial Select Sector ETF was falling 0.9%.

The Philadelphia Housing Index was ahead 2.8%.

In company news, Silvergate Capital (SI) rose almost 3% after the bank holding company Monday reported Q2 net income of $0.29 per share, improving on a $0.28 per share profit during the same quarter last year and beating the Capital IQ consensus by $0.10 per share. Revenue grew to $21.5 million compared with $19.8 million during the year-ago period, also exceeding the $19.9 million Street view.

BrightSphere Investment Group (BSIG) also climbed nearly 17% after Sunday announcing the sale of its 75.1% equity stake in its Barrow, Hanley, Mewhinney & Strauss affiliate to Australia-based Perpetual Ltd for $319 million. Perpetual will also redeem BrightSphere's $44 million seed capital investment in the investment manager. In a separate transaction, BrightSphere also sold its stake in Copper Rock Capital Partners to Spouting Rock Asset Management and said it was expecting to pocket about $15 million, after taxes.

Lemonade (LMND) fell 6% after Goldman Sachs Monday began analyst coverage of the insurance carrier with a sell recommendation and a $44 price target. At least five other brokerages also issued first-time analyst reports for the company following its July 2 IPO, with most assigning the equivalent of neutral ratings, although JMP Securities began Lemonade at market outperform and a $105 price target.

Northwest Bancshares (NWBI) was almost 3% lower. The bank holding company Monday reported non-GAAP Q2 net income of $0.25 per share, down from $0.26 per share during the year-ago period but still beating the Capital IQ consensus expecting $0.07 per share. Revenue increased 15.2% compared with the same quarter last year, rising to $133.6 million and also exceeded the $126.27 million Street view.

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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SI LMND NWBI BSIG

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