Cass Information Systems (NASDAQ:CASS) Announces Earnings Results

Key Points

• EPS beat but revenue missed: Cass reported Q EPS of $0.66, beating estimates of $0.63, while revenue came in at $26.16M versus analysts' expectations of $49.40M.
• Dividend announced: The company declared a quarterly dividend of $0.32 (annualized $1.28) for a yield of 2.7%, with an ex-dividend date of June 5 and payment on June 15.
• Market view and ownership: Shares trade near $46.94 with a $606M market cap and a ~17.9 PE; analysts hold a consensus "Moderate Buy" with a $50 target and institutional investors own about 59% of the stock.

Cass Information Systems (NASDAQ:CASS - Get Free Report) posted its quarterly earnings results on Thursday. The business services provider reported $0.66 earnings per share for the quarter, beating analysts' consensus estimates of $0.63 by $0.03, FiscalAI reports. The company had revenue of $26.16 million for 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 Price Performance

NASDAQ CASS opened at $46.94 on Friday. The company has a fifty day moving average of $45.10 and a two-hundred day moving average of $42.89. The company has a market capitalization of $606.00 million, a PE ratio of 17.92 and a beta of 0.42. Cass Information Systems has a 1 year low of $36.07 and a 1 year high of $48.76.

Cass Information Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Friday, June 5th will be paid a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 2.7%. The ex-dividend date is Friday, June 5th. Cass Information Systems's dividend payout ratio is currently 48.85%.

Institutional Trading of Cass Information Systems

Several institutional investors and hedge funds have recently made changes to their positions in the company. Acumen Wealth Advisors LLC acquired a new position in Cass Information Systems in the 4th quarter valued at about $4,660,000. Two Sigma Investments LP lifted its position in Cass Information Systems by 1,190.2% during the 3rd quarter. Two Sigma Investments LP now owns 71,749 shares of the business services provider's stock worth $2,822,000 after acquiring an additional 66,188 shares during the period. Goldman Sachs Group Inc. lifted its position in Cass Information Systems by 70.7% during the 4th quarter. Goldman Sachs Group Inc. now owns 92,973 shares of the business services provider's stock worth $3,860,000 after acquiring an additional 38,515 shares during the period. First Trust Advisors LP lifted its position in Cass Information Systems by 397.9% during the 3rd quarter. First Trust Advisors LP now owns 43,646 shares of the business services provider's stock worth $1,717,000 after acquiring an additional 34,880 shares during the period. Finally, Emmett Investment Management LP grew its stake in shares of Cass Information Systems by 23.6% in the 4th quarter. Emmett Investment Management LP now owns 166,875 shares of the business services provider's stock valued at $6,771,000 after purchasing an additional 31,880 shares during the last quarter. 59.08% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

CASS has been the topic of a number of recent analyst reports. Weiss Ratings upgraded Cass Information Systems from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, April 1st. Raymond James Financial restated an "outperform" rating and set a $50.00 target price on shares of Cass Information Systems in a research note 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 stock has an average rating of "Moderate Buy" and a consensus price target of $50.00.

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.