The Bancorp set for worst day since 2020 as partner Chime set to buy Stride Bank
TBBK•The Bancorp shares slide as Chime moves to buy Stride Bank
U.S. bank The Bancorp's TBBK.O shares slide 22.7% to $49.77, on track for their worst day since March 2020.
TBBK banking partner Chime CHYM.O late Tuesday unveiled a move to buy Stride Bank, gaining a bank charter that would allow it to expand its lending business.
CHYM and TBBK have a multi-year partnership on banking sponsorship services.
Piper Sandler analyst Manuel Navas says CHYM's strategy would ultimately necessitate a move away from TBBK.
"We expect weakness in shares today and look for management to clarify the impact of this transaction," Navas says.
Navas also says Block's XYZ.N move to file for a bank charter adds another headwind for TBBK.
All three brokerages covering the stock rate "buy" or higher; median PT $86 - data compiled by LSEG.
As of last close, TBBK shares were down 4.6% YTD.
