Cadre (NYSE:CDRE) Shares Gap Down Following Weak Earnings

Key Points

• Weak quarterly results: Cadre missed expectations with EPS of $0.27 versus $0.47 expected and revenue of $167.22M versus $182.94M, with revenue down 4.9% year-over-year.
• Shares tumbled on the news: the stock gapped down from $40.69 to $37.50 at the open and was last trading near $35.61, a roughly 13.1% decline on the day.
• Dividend increase and mixed analyst sentiment: Cadre paid a quarterly dividend of $0.10 (1.1% yield, DPR ~35.7%), while analysts maintain a consensus "Moderate Buy" with an average price target of $43.00.

Cadre Holdings, Inc. (NYSE:CDRE - Get Free Report) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $40.69, but opened at $37.50. Cadre shares last traded at $35.6120, with a volume of 284,201 shares changing hands.

The company reported $0.27 earnings per share for the quarter, missing analysts' consensus estimates of $0.47 by ($0.20). Cadre had a return on equity of 13.94% and a net margin of 7.33%.The business had revenue of $167.22 million for the quarter, compared to analysts' expectations of $182.94 million. During the same period last year, the company posted $0.32 earnings per share. The firm's revenue for the quarter was down 4.9% on a year-over-year basis.

Cadre Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, January 30th were issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Friday, January 30th. This is an increase from Cadre's previous quarterly dividend of $0.10. Cadre's dividend payout ratio (DPR) is 35.71%.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on CDRE shares. Zacks Research cut Cadre from a "strong-buy" rating to a "hold" rating in a report on Wednesday, March 4th. Weiss Ratings reissued a "buy (b-)" rating on shares of Cadre in a research report on Monday, December 29th. Wall Street Zen upgraded shares of Cadre from a "buy" rating to a "strong-buy" rating in a research note on Saturday, February 7th. Lake Street Capital reaffirmed a "buy" rating and set a $53.00 price target on shares of Cadre in a report on Wednesday, February 4th. Finally, CJS Securities upgraded shares of Cadre to a "strong-buy" rating in a report on Thursday, December 11th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $43.00.

Institutional Trading of Cadre

Several institutional investors have recently added to or reduced their stakes in CDRE. Rafferty Asset Management LLC increased its position in shares of Cadre by 3.8% in the 3rd quarter. Rafferty Asset Management LLC now owns 7,003 shares of the company's stock worth $256,000 after purchasing an additional 259 shares during the last quarter. Huntington National Bank increased its holdings in Cadre by 33.9% in the third quarter. Huntington National Bank now owns 1,285 shares of the company's stock valued at $47,000 after buying an additional 325 shares during the last quarter. Ameritas Investment Partners Inc. raised its stake in Cadre by 14.0% during the second quarter. Ameritas Investment Partners Inc. now owns 2,908 shares of the company's stock valued at $93,000 after buying an additional 357 shares in the last quarter. Assetmark Inc. lifted its holdings in Cadre by 43.1% during the 2nd quarter. Assetmark Inc. now owns 1,395 shares of the company's stock worth $44,000 after buying an additional 420 shares during the last quarter. Finally, The Manufacturers Life Insurance Company grew its position in shares of Cadre by 3.2% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 13,991 shares of the company's stock worth $446,000 after acquiring an additional 438 shares in the last quarter. 43.95% of the stock is owned by institutional investors and hedge funds.

Cadre Stock Down 13.1%

The company has a debt-to-equity ratio of 0.87, a quick ratio of 2.58 and a current ratio of 3.64. The firm has a market capitalization of $1.44 billion, a P/E ratio of 31.79, a P/E/G ratio of 1.48 and a beta of 1.34. The stock has a fifty day moving average price of $42.55 and a two-hundred day moving average price of $40.30.

Cadre Company Profile

Cadre NYSE: CDRE is a technology‐driven real estate investment platform that offers accredited and institutional investors direct access to institutional‐grade commercial properties. Established in 2014, Cadre leverages a data-centric approach to identify, underwrite and manage investments in multifamily, office, retail and industrial assets across major U.S. markets. The firm's platform is designed to streamline the investment process, from deal sourcing and due diligence to ongoing asset management and reporting.

Through its online marketplace, Cadre provides a curated selection of equity and preferred equity offerings, allowing investors to participate in individual properties or diversify across a managed portfolio.

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