Cohen & Steers (NYSE:CNS) Shares Gap Down on Disappointing Earnings

Key Points

• Cohen & Steers shares opened sharply lower after the company reported quarterly earnings that missed Wall Street expectations, briefly gapping down from $81.07 to $74.74 before recovering some ground.
• The asset manager posted $0.85 EPS, slightly below the $0.86 consensus estimate, while revenue came in at $151.84 million, above expectations and up 12.2% from a year earlier.
• The company also maintained its quarterly dividend of $0.67 per share, equal to an annualized yield of 3.3%, though the payout ratio remains relatively high at 88.45%.

Cohen & Steers Inc (NYSE:CNS - Get Free Report)'s share price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $81.07, but opened at $74.74. Cohen & Steers shares last traded at $81.2310, with a volume of 43,147 shares.

The asset manager reported $0.85 EPS for the quarter, missing analysts' consensus estimates of $0.86 by ($0.01). The firm had revenue of $151.84 million for the quarter, compared to analysts' expectations of $149.45 million. Cohen & Steers had a net margin of 27.47% and a return on equity of 27.60%. The firm's quarterly revenue was up 12.2% on a year-over-year basis. During the same period in the prior year, the company earned $0.73 EPS.

Cohen & Steers Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Shareholders of record on Monday, May 11th were issued a dividend of $0.67 per share. The ex-dividend date of this dividend was Monday, May 11th. This represents a $2.68 annualized dividend and a yield of 3.3%. Cohen & Steers's dividend payout ratio is 88.45%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on CNS. Weiss Ratings upgraded shares of Cohen & Steers from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, June 29th. Evercore reaffirmed an "outperform" rating and issued a $84.00 price objective on shares of Cohen & Steers in a report on Friday, July 10th. Finally, Zacks Research upgraded shares of Cohen & Steers from a "strong sell" rating to a "hold" rating in a research note on Friday, March 27th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Cohen & Steers presently has a consensus rating of "Hold" and an average price target of $76.00.

Insiders Place Their Bets

In other news, EVP Daniel Noonan sold 4,360 shares of the business's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $77.33, for a total transaction of $337,158.80. Following the completion of the transaction, the executive vice president directly owned 28,682 shares in the company, valued at $2,217,979.06. The trade was a 13.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 45.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Cohen & Steers

Hedge funds have recently bought and sold shares of the stock. Kestra Advisory Services LLC bought a new position in shares of Cohen & Steers in the 4th quarter worth $28,000. Geneos Wealth Management Inc. lifted its holdings in shares of Cohen & Steers by 345.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 383 shares of the asset manager's stock worth $31,000 after acquiring an additional 297 shares during the last quarter. Aster Capital Management DIFC Ltd purchased a new position in Cohen & Steers in the fourth quarter worth $31,000. Caitong International Asset Management Co. Ltd grew its position in Cohen & Steers by 110.7% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 569 shares of the asset manager's stock worth $36,000 after acquiring an additional 299 shares in the last quarter. Finally, Hantz Financial Services Inc. increased its stake in Cohen & Steers by 754.9% in the fourth quarter. Hantz Financial Services Inc. now owns 607 shares of the asset manager's stock valued at $38,000 after acquiring an additional 536 shares during the last quarter. 51.47% of the stock is currently owned by institutional investors.

Cohen & Steers Price Performance

The stock has a 50 day moving average of $74.71 and a 200 day moving average of $68.77. The firm has a market cap of $4.18 billion, a P/E ratio of 26.84, a PEG ratio of 1.95 and a beta of 1.22.

Cohen & Steers Company Profile

Cohen & Steers, Inc is a publicly traded investment management firm specializing in real estate securities and alternative income strategies. Founded in 1986 by Martin Cohen and Robert Steers, the company has built a reputation for expertise in listed real estate investment trusts (REITs) and related equities. Headquartered in New York City, Cohen & Steers applies a research-driven approach to identify value and income opportunities across global property markets.

The firm offers a diverse range of investment products, including mutual funds, closed-end funds, and exchange-traded funds (ETFs).

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