NEW YORK (TheStreet) -- Shares of Green Dot (GDOT) were gaining 32.3% to $20.23 on heavy trading volume Tuesday after the credit services company announced a partnership extension with Walmart (WMT) and a new share repurchase program.
Green Dot announced that it entered into a new long-term agreement to continue serving as the program manager and issuing bank for the Walmart MoneyCard suite of prepaid reloadable credit card products.
The initial term of the new agreement is five years with an effective start date of May 1, 2015. The new agreement with Walmart replaces the two companies' previous agreement which was set to expire at the end of 2015.
The company also said its board of directors authorized the company to repurchase up to $150 million of its common stock, pending regulatory approval.
About 1.1 million shares of Green Dot were traded by 9:47 a.m. Tuesday, above the company's average trading volume of about 436,000 shares a day.
TheStreet Ratings team rates GREEN DOT CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate GREEN DOT CORP (GDOT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."