Cadre (NYSE:CDRE) Downgraded to "Underperform" Rating by Bank of America

Key Points

• Bank of America downgraded Cadre's stock from "neutral" to "underperform," with a new target price of $26.00, down from $38.00, indicating a potential downside of 12.38% from the last close.
• Wall Street Zen also downgraded Cadre from a "buy" rating to a "hold" rating, reflecting a broader skepticism among analysts about the company's prospects.
• Cadre's stock price has fluctuated between a one-year low of $27.07 and a high of $40.28, and its recent earnings report showed an EPS increase to $0.30, beating expectations.

Cadre (NYSE:CDRE - Get Free Report) was downgraded by analysts at Bank of America from a "neutral" rating to an "underperform" rating in a report released on Wednesday, Marketbeat.com reports. They currently have a $26.00 price objective on the stock, down from their previous price objective of $38.00. Bank of America's target price would indicate a potential downside of 12.33% from the company's previous close.

Separately, Wall Street Zen cut Cadre from a "buy" rating to a "hold" rating in a report on Saturday, August 9th.

Cadre Stock Performance

CDRE opened at $29.66 on Wednesday. Cadre has a 12-month low of $27.07 and a 12-month high of $40.28. The stock has a market cap of $1.21 billion, a price-to-earnings ratio of 31.55, a PEG ratio of 1.07 and a beta of 1.31. The business has a 50 day moving average of $32.47 and a 200-day moving average of $32.60. The company has a quick ratio of 2.56, a current ratio of 3.59 and a debt-to-equity ratio of 0.90.

Cadre (NYSE:CDRE - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.25 by $0.05. The company had revenue of $157.11 million during the quarter, compared to analysts' expectations of $153.23 million. Cadre had a return on equity of 12.08% and a net margin of 6.65%. The business's revenue was up 8.9% on a year-over-year basis. During the same period last year, the firm posted $0.31 earnings per share. On average, equities research analysts expect that Cadre will post 1.05 earnings per share for the current year.

Insiders Place Their Bets

In other Cadre news, CEO Warren B. Kanders sold 50,000 shares of Cadre stock in a transaction on Friday, June 20th. The stock was sold at an average price of $33.01, for a total value of $1,650,500.00. Following the completion of the transaction, the chief executive officer directly owned 10,241,192 shares of the company's stock, valued at $338,061,747.92. The trade was a 0.49% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Over the last ninety days, insiders sold 175,000 shares of company stock valued at $5,823,000. 31.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Cadre

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CDRE. Capital International Investors raised its holdings in Cadre by 118.4% in the 4th quarter. Capital International Investors now owns 1,981,602 shares of the company's stock valued at $64,006,000 after acquiring an additional 1,074,471 shares in the last quarter. Ophir Asset Management Pty Ltd acquired a new position in Cadre in the 2nd quarter valued at $21,872,000. Capital Research Global Investors acquired a new position in Cadre in the 4th quarter valued at $14,937,000. Select Equity Group L.P. raised its holdings in Cadre by 726.6% in the 1st quarter. Select Equity Group L.P. now owns 447,337 shares of the company's stock valued at $13,246,000 after acquiring an additional 393,218 shares in the last quarter. Finally, Raymond James Financial Inc. acquired a new position in Cadre in the 4th quarter valued at $8,179,000. 43.95% of the stock is owned by institutional investors and hedge funds.

About Cadre

Cadre Holdings, Inc manufactures and distributes safety that provides protection to users in hazardous or life-threatening situations in the United States and internationally. The company operates in two segments, Products and Distribution. It offers body armor product, such as concealable, corrections, and tactical armor under the Safariland and Protech Tactical brand names; survival suits, remotely operated vehicles, specialty tools, blast sensors, accessories, and vehicle blast attenuation seats for bomb safety technicians; bomb suits; duty gear, including belts and accessories; and other protective equipment comprising communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products.