Cass Information Systems (NASDAQ:CASS) Reaches New 52-Week High on Better-Than-Expected Earnings

Key Points

• Shares hit a new 52-week high after Cass reported Q‑quarter EPS of $0.66 versus $0.63 expected, sending the stock up about 5.7% to an intraday high of $49.50, although reported revenue was $26.16M versus analysts' $49.40M estimate.
• The company declared a quarterly dividend of $0.32 (annualized $1.28) with an ex-dividend date of June 5 and payment on June 15, reflecting a 2.6% yield and a payout ratio of roughly 48.9%.
• Analysts show a consensus Moderate Buy with a $50 target (Weiss upgraded to buy; Raymond James reiterated outperform), and Cass trades with a $640.3M market cap, a P/E of 18.93, and about 59% institutional ownership.

Cass Information Systems, Inc (NASDAQ:CASS - Get Free Report) shares hit a new 52-week high during mid-day trading on Friday following a stronger than expected earnings report. The stock traded as high as $49.50 and last traded at $49.35, with a volume of 47998 shares. The stock had previously closed at $46.94.

The business services provider reported $0.66 earnings per share for the quarter, topping analysts' consensus estimates of $0.63 by $0.03. The company had revenue of $26.16 million during the quarter, compared to analysts' expectations of $49.40 million. Cass Information Systems had a return on equity of 13.28% and a net margin of 18.41%.

Cass Information Systems Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, June 5th will be issued a $0.32 dividend. The ex-dividend date of this dividend is Friday, June 5th. This represents a $1.28 dividend on an annualized basis and a yield of 2.6%. Cass Information Systems's dividend payout ratio is presently 48.85%.

Wall Street Analyst Weigh In

A number of brokerages have commented on CASS. Weiss Ratings raised Cass Information Systems from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, April 1st. Raymond James Financial reaffirmed an "outperform" rating and issued a $50.00 price target on shares of Cass Information Systems in a report on Thursday, January 22nd. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $50.00.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Triumph Capital Management purchased a new position in Cass Information Systems in the third quarter worth approximately $25,000. Kingdom Financial Group LLC. purchased a new position in shares of Cass Information Systems during the fourth quarter worth $26,000. New York State Teachers Retirement System purchased a new position in shares of Cass Information Systems during the fourth quarter worth $46,000. BNP Paribas Financial Markets boosted its position in shares of Cass Information Systems by 50.7% during the second quarter. BNP Paribas Financial Markets now owns 1,227 shares of the business services provider's stock worth $53,000 after buying an additional 413 shares during the period. Finally, Russell Investments Group Ltd. boosted its position in shares of Cass Information Systems by 1,206.6% during the third quarter. Russell Investments Group Ltd. now owns 1,594 shares of the business services provider's stock worth $63,000 after buying an additional 1,472 shares during the period. 59.08% of the stock is currently owned by hedge funds and other institutional investors.

Cass Information Systems Stock Up 5.7%

The firm has a 50-day moving average price of $45.10 and a 200 day moving average price of $42.89. The firm has a market capitalization of $640.34 million, a PE ratio of 18.93 and a beta of 0.42.

About Cass Information Systems

Cass Information Systems, Inc provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. The company operates through two segments, Information Services and Banking Services. Its services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. The company also processes and pays facility-related invoices, such as electricity, gas, waste, and telecommunications expenses; and provides telecom expense management solutions, as well as church management software solution and on-line platform to provide generosity services for faith-based and non-profit organizations.

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