Enova International tumbles after withdrawing bid for Grasshopper Bancorp
-23.43% to $173.61 from $226.72
What moved ENVA
- Enova said it withdrew its applications with the Office of the Comptroller of the Currency and the Federal Reserve related to its proposed acquisition of Grasshopper Bancorp, ending its bid for a bank charter.
- Management said bank regulatory guidelines and attitudes have not kept pace with the credit needs of consumers and small businesses underserved by traditional banks, and said it would instead accelerate share repurchases.
- Enova reaffirmed its 2026 outlook, including expected third-quarter revenue growth of about 25% and full-year growth of 20% to 25%, despite the stock’s sharp reaction to the withdrawal.
- Following the announcement, Citizens cut its price target on Enova shares, citing the withdrawn bank acquisition as a setback to the company’s diversification strategy.
Sources: Seeking Alpha · PR Newswire · Investing.com