Cato (NYSE:CATO) Shares Pass Above 200 Day Moving Average - Here's Why

Key Points

• Cato Corporation's share price has crossed above its 200-day moving average, with the current price at $4.15, indicating potential positive momentum in the stock.
• Wall Street analysts upgraded Cato from a "sell" rating to a "hold" rating, suggesting improved confidence in the company's performance.
• Institutional investors have increased their stakes in Cato, with 61.10% of the company's stock now owned by large investors, reflecting growing interest in the stock.

Cato Corporation (The) (NYSE:CATO - Get Free Report) passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $2.91 and traded as high as $4.20. Cato shares last traded at $4.15, with a volume of 212,468 shares.

Analyst Upgrades and Downgrades

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

Cato Trading Down 2.3%

The stock has a market cap of $83.90 million, a PE ratio of -4.21 and a beta of 0.84. The firm has a fifty day simple moving average of $3.10 and a two-hundred day simple moving average of $2.92.

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

Hedge Funds Weigh In On Cato

A number of large investors have recently modified their holdings of the company. Barclays PLC raised its holdings in shares of Cato by 110.1% during the 4th quarter. Barclays PLC now owns 10,832 shares of the specialty retailer's stock valued at $42,000 after buying an additional 5,677 shares in the last quarter. Prescott Group Capital Management L.L.C. grew its position in shares of Cato by 13.7% in the 1st quarter. Prescott Group Capital Management L.L.C. now owns 166,040 shares of the specialty retailer's stock worth $553,000 after buying an additional 20,000 shares during the last quarter. Goldman Sachs Group Inc. grew its position in shares of Cato by 76.2% in 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. Bridgeway Capital Management LLC grew its position 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 worth $557,000 after buying an additional 20,926 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. bought a new stake in shares of Cato in the 1st quarter worth approximately $174,000. 61.10% of the stock is owned by hedge funds and other institutional investors.

Cato Company Profile

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.