GDOT - Green Dot downgraded to Market Perform at William Blair after CEO exit

William Blair analyst downgraded Green Dot ( NYSE: GDOT ) to Market Perform from Outperform after the the fintech terminated the employment of its CEO and postponed its Investor Day.

Earlier on Monday, Green Dot ( GDOT ) said it ousted Dan R. Henry as CEO and president, and named CFO George Gresham to succeed him. The company did not give a reason for the termination. In a filing, it said Henry will be entitled to payments and benefits payable upon a termination without cause. In its Q2 earnings call, Henry said three partners indicated they would not renew their contracts with Green Dot ( GDOT ).

The company's shares have dropped 2.2% in Monday morning trading.

Henry, who joined the company in March 2020, has refreshed the bulk of its senior leadership and reorganized internal operations, the William Blair note said.  Gresham is well respected in the investment community, it added.

Green Dot's ( GDOT ) also said in the CEO transition statement that it expects Q3 results to near the high end of the guidance ranges it provided in August.

William Blair's Market Perform rating aligns with the SA Quant rating of Hold and breaks from the average Wall Street rating of Buy.

For a look at Green Dot's previous financial statements, click here.

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