Cadre (NYSE:CDRE) Shares Gap Down - Should You Sell?

Key Points

• Cadre Holdings, Inc. (NYSE: CDRE) experienced a gap down in share price, opening at $28.53, following a downgrade from Bank of America from "neutral" to "underperform" with a lowered price target of $26.00.
• The company reported $0.30 earnings per share for the last quarter, exceeding estimates, with revenue rising 8.9% year-over-year to $157.11 million.
• Cadre has announced a quarterly dividend of $0.095 per share, with a yield of 1.3%, and plans to pay it on August 15th, 2023.

Cadre Holdings, Inc. (NYSE:CDRE - Get Free Report)'s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $29.72, but opened at $28.53. Cadre shares last traded at $28.89, with a volume of 99,814 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on CDRE. Wall Street Zen downgraded shares of Cadre from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Bank of America reaffirmed an "underperform" rating and issued a $26.00 price objective (down previously from $38.00) on shares of Cadre in a research report on Wednesday, August 13th.

Cadre Stock Up 1.4%

The company has a debt-to-equity ratio of 0.90, a current ratio of 3.59 and a quick ratio of 2.56. The business's fifty day simple moving average is $32.57 and its two-hundred day simple moving average is $32.66. The company has a market cap of $1.21 billion, a PE ratio of 31.55, a PEG ratio of 1.07 and a beta of 1.31.

Cadre (NYSE:CDRE - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.30 earnings per share 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 net margin of 6.65% and a return on equity of 12.08%. The firm's revenue for the quarter was up 8.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.31 earnings per share. On average, analysts predict that Cadre Holdings, Inc. will post 1.05 earnings per share for the current year.

Cadre Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Friday, August 1st were given a dividend of $0.095 per share. The ex-dividend date was Friday, August 1st. This represents a $0.38 dividend on an annualized basis and a yield of 1.3%. Cadre's payout ratio is presently 40.43%.

Insiders Place Their Bets

In other Cadre news, CEO Warren B. Kanders sold 100,000 shares of the business's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $34.86, for a total value of $3,486,000.00. Following the transaction, the chief executive officer directly owned 10,716,192 shares in the company, valued at $373,566,453.12. The trade was a 0.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders have sold 275,000 shares of company stock worth $9,309,000 in the last quarter. Insiders own 31.50% of the company's stock.

Hedge Funds Weigh In On Cadre

Several large investors have recently made changes to their positions in the stock. Greenhouse Funds LLLP increased its stake in Cadre by 8.4% during the 2nd quarter. Greenhouse Funds LLLP now owns 2,743,265 shares of the company's stock worth $87,373,000 after buying an additional 213,298 shares during the period. Capital International Investors increased its position in shares of 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 purchasing an additional 1,074,471 shares during the last quarter. Vanguard Group Inc. increased its position in shares of Cadre by 3.0% in the 1st quarter. Vanguard Group Inc. now owns 1,432,441 shares of the company's stock valued at $42,415,000 after purchasing an additional 41,476 shares during the last quarter. Fred Alger Management LLC increased its position in shares of Cadre by 20.9% in the 1st quarter. Fred Alger Management LLC now owns 826,528 shares of the company's stock valued at $24,473,000 after purchasing an additional 143,119 shares during the last quarter. Finally, Ophir Asset Management Pty Ltd purchased a new stake in shares of Cadre in the 2nd quarter valued at approximately $21,872,000. 43.95% of the stock is currently owned by institutional investors and hedge funds.

Cadre Company Profile

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.