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.

In This Story


Latest Personal Finance Videos

Developing a Student Loan Repayment Plan Once Forbearance Ends on May 1

Jan 07, 2022


Founded in 1999, MT Newswires (formerly known as Midnight Trader) is a leading provider of original source, multi-asset class, real-time, global financial news and information to most of the largest banks, brokerage firms and professional market data, trading & research applications in North America.

Learn More