With earnings season in full swing, most of biggest gainers among financial stocks can attribute their rise to better-than-expected earnings, even as the broader market declined.
- Silvergate Capital (NYSE:SI) leads as the best-performing financial stock (with a market cap exceeding $2B) this week, rising 8.5%. Its Q1 earnings easily beat the consensus as its average deposits reached a record $14.7B and the number of its digital currency customers increased;
- M&T Bank (MTB) shares gained 8.1% during the week after Morgan Stanley gave a rare double-upgrade with an Overweight rating as the yield curve prices in the likelihood of a full 300 basis points of rate hikes this year. Q1 earnings topped the consensus estimate, reflecting strong credit quality and higher trust income;
- Insurance company RLI Corp. (RLI) gained 7.9% after Q1 EPS of $1.05 exceeded the average analyst estimate of $1.03;
- Piper Sandler (PIPR) rose 7.5%; and
- SVB Financial (SIVB) stock climbed 6.7% this week after the owner of Silicon Valley Bank turned in stronger-than-expected Q1 results and Wedbush raised its 2023 and 2023 GAAP EPS estimates for SIVB soon after.
Meanwhile, among the week’s decliners are two high-profile fintech names and a broker that issued a disappointing business update.
- Goosehead Insurance (GSHD) leads the week’s decliners, dropping 18% for the week;
- PayPal Holdings (PYPL) stock slid 16% in a week where Amazon (AMZN) unveiled a payment option that may hurt PayPal, and the company disclosed a $32M pay package for its CEO;
- Charles Schwab (SCHW) stock fell 15% after Q1 earnings missed expectations and the company’s CFO explained that clients are moving some funds to investments “off our balance sheet into higher yielding alternatives.”
- SoFi Technologies (SOFI) dropped 12% for the week, its third week in the biggest decliners list, and down 60% YTD. The stock, which has a significant business in refinancing student loans, has been hurt by the pause in federal student loan payments; and
- Trupanion (TRUP) rounds out the list with a 12% decline.