Should You Consider Buying Green Dot (GDOT) Shares?

Sterling Partners Equity Advisors, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. The Fund owns well-capitalized companies that earn good returns over cycles. They sell differentiated products and services that serve a niche, with a “moat” to quote Morningstar, and the fund buys them at what they believe are attractive prices. The fund will be looking for more of them in 2022. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Sterling Partners Equity Advisors, in its Q4 2021 investor letter, mentioned Green Dot Corporation (NYSE:GDOT) and discussed its stance on the firm. Founded in 1999, Green Dot Corporation (NYSE:GDOT) is a Pasadena, California-based financial technology and bank holding company with a $1.5 billion market capitalization, and is currently spearheaded by its CEOs, Daniel R Henry and Steve Streit. Green Dot Corporation (NYSE:GDOT) delivered a -23.45% return since the beginning of the year, while its 12-month returns are down by -40.98%. The stock closed at $27.74 per share on March 25, 2022.

Here is what Sterling Partners Equity Advisors has to say about Green Dot Corporation (NYSE:GDOT) in its Q4 2021 investor letter:

“Green Dot is a consumer financial services providing a range of reloadable prepaid debit cards and cash reload processing services with a mission to provide a full range of affordable and accessible financial services to customers. Management believes that the company delivered a strong quarter with solid revenue growth. During the quarter Green Dot added to its leadership bench with a new COO and CFO. We own the stock on the thesis that the company would continue to gain market share with its no real estate, low-cost model and those customers would increasingly gravitate to the convenience of online commerce.

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Our calculations show that Green Dot Corporation (NYSE:GDOT) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Green Dot Corporation (NYSE:GDOT) was in 26 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 23 funds in the previous quarter. Green Dot Corporation (NYSE:GDOT) delivered a -22.54% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Green Dot Corporation (NYSE:GDOT) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.