Green Dot Corp. jumped 28 percent in extended trading Monday after authorizing a stock buyback plan and reaching a new, five-year deal with Wal-Mart Stores Inc. to issue prepaid reloadable debit cards.
Shares of the Pasadena, California-based company rose to $19.61 at 4:52 p.m. in New York. The stock slid 25 percent this year through the close of regular trading.
Green Dot’s board authorized the firm to buy back as much as $150 million of common stock, the company said in a statement. The bank’s new deal with Wal-Mart replaces Green Dot’s current agreement, which was scheduled to expire at the end of the year, the company said in a separate statement. Terms weren’t disclosed.
“To be chosen again as Wal-Mart’s partner against a wide field of fine competitors brings a wonderful feeling of accomplishment and satisfaction,” Steve Streit, chief executive officer of Green Dot, said in the statement.
Green Dot began working with Wal-Mart, the biggest U.S. retailer, in 2007 and the new contract took effect on May 1, according to the statement.