Cato (NYSE:CATO) Share Price Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• Cato Corporation shares surged past their 200-day moving average, trading at $4.15, which is significantly higher than the average of $2.91.
• Wall Street analysts have upgraded Cato from a "sell" to a "hold" rating, indicating a more positive outlook on the stock's performance.
• The company reported a quarterly revenue of $176.51 million with an earnings per share (EPS) of $0.35, but it also had a negative return on equity of 11.29%.

Cato Corporation (The) (NYSE:CATO - Get Free Report) crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred 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 trading hands.

Wall Street Analyst Weigh In

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

Cato Stock Down 2.3%

The company has a market capitalization of $83.90 million, a P/E ratio of -4.21 and a beta of 0.84. The company has a 50-day moving average of $3.10 and a two-hundred day 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 (EPS) for the quarter. The business had revenue of $176.51 million during the quarter. Cato had a negative return on equity of 11.23% and a negative net margin of 2.93%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Barclays PLC raised its stake in shares of Cato by 110.1% in the fourth quarter. Barclays PLC now owns 10,832 shares of the specialty retailer's stock worth $42,000 after purchasing an additional 5,677 shares during the last quarter. Goldman Sachs Group Inc. increased its position in Cato by 76.2% during the first quarter. Goldman Sachs Group Inc. now owns 47,437 shares of the specialty retailer's stock valued at $158,000 after acquiring an additional 20,521 shares during the last quarter. Jacobs Levy Equity Management Inc. bought a new stake in Cato during the first quarter valued at about $174,000. Prescott Group Capital Management L.L.C. grew its holdings in Cato by 13.7% during 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 period. Finally, Bridgeway Capital Management LLC grew its holdings in Cato by 17.2% during the fourth 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. Hedge funds and other institutional investors own 61.10% of the company's stock.

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.