Cato (NYSE:CATO) Share Price Passes Above Two Hundred Day Moving Average - Here's Why

Key Points

• Cato Corporation's stock (NYSE:CATO) has surpassed its 200-day moving average of $2.99, trading at a high of $4.73, with last traded price at $4.56.
• Wall Street ratings have improved, with Wall Street Zen upgrading the stock from a "sell" to a "hold" rating.
• Hedge funds have been active with Cato, as notable increases in holdings were made, including a 76.2% boost by Goldman Sachs in the first quarter.

Cato Corporation (The) (NYSE:CATO - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $2.99 and traded as high as $4.73. Cato shares last traded at $4.56, with a volume of 46,967 shares.

Analysts Set New Price Targets

Separately, Wall Street Zen upgraded Cato from a "sell" rating to a "hold" rating in a report on Saturday, May 24th.

Cato Trading Down 1.8%

The firm has a 50 day moving average price of $3.52 and a 200-day moving average price of $3.04. The firm has a market cap of $87.21 million, a PE ratio of -4.38 and a beta of 0.85.

Cato (NYSE:CATO - Get Free Report) last issued its earnings results on Thursday, August 21st. The specialty retailer reported $0.35 earnings per share for the quarter. The firm had revenue of $176.51 million for the quarter. Cato had a negative net margin of 2.93% and a negative return on equity of 11.23%.

Institutional Trading of Cato

A number of institutional investors have recently bought and sold shares of CATO. Goldman Sachs Group Inc. lifted its holdings in Cato by 76.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 47,437 shares of the specialty retailer's stock worth $158,000 after buying an additional 20,521 shares during the last quarter. Jacobs Levy Equity Management Inc. acquired a new stake in shares of Cato during the 1st quarter worth about $174,000. Prescott Group Capital Management L.L.C. increased its stake in Cato by 13.7% in the first quarter. Prescott Group Capital Management L.L.C. now owns 166,040 shares of the specialty retailer's stock valued at $553,000 after purchasing an additional 20,000 shares during the last quarter. Finally, Peapod Lane Capital LLC increased its stake in Cato by 13.5% in the first quarter. Peapod Lane Capital LLC now owns 656,690 shares of the specialty retailer's stock valued at $2,187,000 after purchasing an additional 78,058 shares during the last quarter. 61.10% of the stock is owned by hedge funds and other institutional investors.

About Cato

The Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. It operates through two segments, Retail and Credit. The company's stores and e-commerce websites offer a range of apparel and accessories, including dressy, career, and casual sportswear; and dresses, coats, shoes, lingerie, costume jewelry, and handbags, as well as men's wear, and lines for kids and infants.