GreenSky, Inc. (GSKY) stock soared in intraday trading today after its acquisition agreement with Goldman Sachs Group, Inc. GSKY stock price saw a surge of 51.74% to reach $11.79 a share at the time of this writing. The trading volume as of now was 6,354,012, pretty much higher than the average trading volume. Let’s take a deep look at this stock.
GreenSky, Inc is the tech stock that helps merchants, consumers, and bank partners by enabling promotional financing at the point of sale. The stock was founded in 2006 and its headquarters are in Atlanta, Georgia.
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Goldman Sachs to Acquire GSKY stock:
Goldman Sachs and GreenSky stock announced the definitive agreement today on September 15, 2021. According to the agreement, Goldman Sachs will acquire GSKY stock in all-stock transactions for approximately $2.24 billion. The acquisition of GSKY stock will help Goldman Sachs in the creation of future consumer banking platforms. The banking platform will benefit millions of customers concerning their financial lives.
GreenSky stockholders will get 0.03 shares of Goldman common stock for each GSKY share of Class A common stock. The transaction is expected to close by the end of the fourth quarter of 2021 or the first quarter of 2022.
Financial View of GSKY stock:
According to second-quarter 2021 financial results
- GreenSky generated $136.5 million in revenue as compared to $133.0 million in the same quarter of last year.
- The cost of revenue decreased 33% or $21.4 million as compared to the second quarter of 2020.
- Net income was $46.7 million in the second quarter of 2021 compared to $13.4 million in the prior-year same period.
- Diluted earnings per share increased to $0.22 in Q2,2021 from $0.06 in Q2,2020.
- Adjusted EBITDA increased by 53% from $39.8 million in Q2,2020 to $60.8 million in Q2,2021.
Business Update of GSKY stock
GreenSky rose existing bank partner commitments by $640 million during the second quarter. Moreover, it increased forward flow commitments by $500 million along with $547 million completion of forward flow and other asset sales.
By the end of June 2021, GreenSky had $303 million available corporate liquidity. It consisted of $203 million unrestricted cash and a $100 million credit facility.
Investors are responding positively to the GreenSky after the definitive agreement with Goldman Sachs. The stock has performed well in 2021 as it gained 160% year to date.