Cato (NYSE:CATO) Stock Passes Above 200 Day Moving Average - Time to Sell?

Key Points

• Cato Corporation's share price recently crossed above its 200-day moving average, reaching a high of $3.20 before closing at $3.15.
• Wall Street analysts upgraded Cato from a "sell" rating to a "hold" rating, indicating a more positive outlook for the stock.
• The company reported a loss with earnings of $0.17 per share and a revenue of $170.24 million for the last quarter, coupled with a negative return on equity of 14.71%.

Shares of Cato Corporation (The) (NYSE:CATO - Get Free Report) passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $2.99 and traded as high as $3.20. Cato shares last traded at $3.15, with a volume of 21,610 shares.

Wall Street Analysts Forecast Growth

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

Cato Price Performance

The stock has a market cap of $60.21 million, a P/E ratio of -2.26 and a beta of 0.80. The company has a fifty day moving average price of $2.86 and a 200 day moving average price of $2.97.

Cato (NYSE:CATO - Get Free Report) last issued its quarterly earnings results on Thursday, May 22nd. The specialty retailer reported $0.17 EPS for the quarter. Cato had a negative return on equity of 14.71% and a negative net margin of 4.02%. The firm had revenue of $170.24 million for the quarter.

Hedge Funds Weigh In On Cato

Institutional investors have recently added to or reduced their stakes in the business. Barclays PLC grew its position in Cato by 110.1% during the 4th quarter. Barclays PLC now owns 10,832 shares of the specialty retailer's stock worth $42,000 after acquiring an additional 5,677 shares during the last quarter. Peapod Lane Capital LLC lifted its holdings in Cato by 13.5% in the 1st quarter. Peapod Lane Capital LLC now owns 656,690 shares of the specialty retailer's stock worth $2,187,000 after buying an additional 78,058 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in Cato by 8.2% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 294,905 shares of the specialty retailer's stock worth $1,150,000 after buying an additional 22,333 shares during the period. XTX Topco Ltd purchased a new stake in Cato in the 4th quarter worth approximately $87,000. Finally, Bridgeway Capital Management LLC lifted its stake in shares of Cato by 17.2% in the 4th quarter. Bridgeway Capital Management LLC now owns 142,930 shares of the specialty retailer's stock valued at $557,000 after purchasing an additional 20,926 shares during the period. 61.10% of the stock is currently owned by 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.