NEW YORK (TheStreet) -- Shares of National Bank of Greece (NBG) fell more than 5% to a 52-week low of $2.04 on Wednesday after the company announced a secondary offering of existing shares in Turkish bank Finansbank.
The offering is valued at approximately 80 million Turkish liras, or approximately $35.5 million. The amount of the offering is approximately 2.25% of the company's paid-in capital of Finansbank.
National Bank of Greece also allowed an overallotment option of up to 26.9% of the share capital. The bank said it would retain majority in and control of Finansbank.
The offering is subject to approval from appropriate regulatory authorities.
More than 8.7 million shares had changed hands as of 3:16 p.m., compared to the average volume of 4,148,270.
Separately, TheStreet Ratings team rates NATIONAL BANK OF GREECE as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATIONAL BANK OF GREECE (NBG) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly decreased to -$7,775.80 million or 635.25% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for NATIONAL BANK OF GREECE is currently lower than what is desirable, coming in at 32.29%. It has decreased significantly from the same period last year. Despite the weak results of the gross profit margin, the net profit margin of 70.84% has significantly outperformed against the industry average.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 57.60%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 64.06% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- NATIONAL BANK OF GREECE has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NATIONAL BANK OF GREECE turned its bottom line around by earning $1.98 versus -$27.80 in the prior year. For the next year, the market is expecting a contraction of 92.9% in earnings ($0.14 versus $1.98).
- NBG, with its decline in revenue, underperformed when compared the industry average of 0.1%. Since the same quarter one year prior, revenues fell by 11.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: NBG Ratings Report