Cato (NYSE:CATO) Upgraded to "Buy" at Wall Street Zen

Key Points

• Cato (NYSE:CATO) has been upgraded to a "buy" rating by Wall Street Zen, signaling positive sentiment from analysts.
• In contrast, Weiss Ratings has maintained a "sell (e+)" rating for the company, contributing to a consensus rating of "Sell".
• Cato reported a quarterly EPS of $0.35 with a revenue of $176.51 million, but faced challenges with a negative net margin of 2.93%.

Cato (NYSE:CATO - Get Free Report) was upgraded by stock analysts at Wall Street Zen to a "buy" rating in a note issued to investors on Saturday.

Separately, Weiss Ratings reissued a "sell (e+)" rating on shares of Cato in a report on Wednesday, October 8th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the stock has a consensus rating of "Sell".

Cato Price Performance

NYSE CATO opened at $3.89 on Friday. The company has a market cap of $76.75 million, a PE ratio of -3.85 and a beta of 0.85. Cato has a 52 week low of $2.19 and a 52 week high of $6.70. The firm's 50-day simple moving average is $4.05 and its two-hundred day simple moving average is $3.19.

Cato (NYSE:CATO - Get Free Report) last released its quarterly earnings data on Thursday, August 21st. The specialty retailer reported $0.35 EPS for the quarter. The business 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 Investors Weigh In On Cato

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Peapod Lane Capital LLC raised 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 in the last quarter. Prescott Group Capital Management L.L.C. raised 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 in the last quarter. Jacobs Levy Equity Management Inc. purchased a new stake in Cato in the first quarter valued at approximately $174,000. Finally, Goldman Sachs Group Inc. raised its stake in Cato by 76.2% in the first quarter. Goldman Sachs Group Inc. now owns 47,437 shares of the specialty retailer's stock valued at $158,000 after purchasing an additional 20,521 shares in the last quarter. 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.

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