Pathward Financial, Inc. $CASH Shares Bought by Principal Financial Group Inc.

Key Points

• Principal Financial Group increased its Pathward Financial stake by 39.5% in the first quarter, adding 42,992 shares and bringing its holding to 151,892 shares worth about $13.6 million.
• Pathward Financial missed quarterly expectations, reporting EPS of $1.37 versus the $1.95 estimate and revenue of $189.64 million versus $191.18 million expected. The company also lowered its FY2026 EPS guidance to $7.80-$8.20.
• Despite the earnings miss, Wall Street remains broadly positive, with analysts maintaining a Buy-leaning consensus and an average price target of $101. Piper Sandler and Keefe, Bruyette & Woods both reiterated constructive ratings, though they trimmed targets slightly.

Principal Financial Group Inc. grew its holdings in Pathward Financial, Inc. (NASDAQ:CASH - Free Report) by 39.5% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 151,892 shares of the savings and loans company's stock after acquiring an additional 42,992 shares during the period. Principal Financial Group Inc. owned about 0.70% of Pathward Financial worth $13,553,000 as of its most recent SEC filing.

A number of other institutional investors have also recently added to or reduced their stakes in CASH. EverSource Wealth Advisors LLC raised its position in Pathward Financial by 43,200.0% in the second quarter. EverSource Wealth Advisors LLC now owns 433 shares of the savings and loans company's stock valued at $34,000 after purchasing an additional 432 shares during the period. Smartleaf Asset Management LLC boosted its position in shares of Pathward Financial by 23.0% in the fourth quarter. Smartleaf Asset Management LLC now owns 630 shares of the savings and loans company's stock worth $45,000 after buying an additional 118 shares during the period. State of Wyoming purchased a new stake in shares of Pathward Financial in the second quarter worth about $46,000. Rockefeller Capital Management L.P. grew its stake in shares of Pathward Financial by 225.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 853 shares of the savings and loans company's stock valued at $61,000 after buying an additional 591 shares in the last quarter. Finally, New Age Alpha Advisors LLC acquired a new stake in shares of Pathward Financial in the fourth quarter valued at about $77,000. 92.66% of the stock is owned by hedge funds and other institutional investors.

Pathward Financial Stock Performance

Pathward Financial stock opened at $83.12 on Friday. The stock has a market cap of $1.75 billion, a P/E ratio of 10.42 and a beta of 0.60. The company has a current ratio of 0.81, a quick ratio of 0.80 and a debt-to-equity ratio of 0.04. The stock has a 50 day moving average of $84.90 and a 200-day moving average of $87.14. Pathward Financial, Inc. has a 52 week low of $65.87 and a 52 week high of $101.26.

Pathward Financial (NASDAQ:CASH - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The savings and loans company reported $1.37 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.95 by ($0.58). The company had revenue of $189.64 million during the quarter, compared to the consensus estimate of $191.18 million. Pathward Financial had a return on equity of 20.59% and a net margin of 21.03%.Pathward Financial has set its FY 2027 guidance at 9.500-10.000 EPS and its FY 2026 guidance at 7.800-8.200 EPS. On average, analysts expect that Pathward Financial, Inc. will post 8.73 EPS for the current fiscal year.

Pathward Financial Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Thursday, June 11th were given a $0.05 dividend. The ex-dividend date of this dividend was Thursday, June 11th. This represents a $0.20 annualized dividend and a dividend yield of 0.2%. Pathward Financial's payout ratio is presently 2.51%.

Wall Street Analyst Weigh In

Several research firms recently commented on CASH. Keefe, Bruyette & Woods reduced their price target on Pathward Financial from $108.00 to $97.00 and set an "outperform" rating on the stock in a research report on Thursday. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Pathward Financial in a research report on Friday, May 8th. Finally, Piper Sandler reissued an "overweight" rating and set a $105.00 target price (down from $107.00) on shares of Pathward Financial in a research report on Thursday. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $101.00.

Insider Activity

In other news, Director Elizabeth G. Hoople sold 4,500 shares of the company's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $82.29, for a total value of $370,305.00. Following the sale, the director owned 28,050 shares in the company, valued at approximately $2,308,234.50. This represents a 13.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Douglas J. Hajek sold 5,000 shares of the stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $86.37, for a total transaction of $431,850.00. Following the transaction, the director directly owned 12,281 shares in the company, valued at $1,060,709.97. The trade was a 28.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.43% of the stock is currently owned by insiders.

More Pathward Financial News

Here are the key news stories impacting Pathward Financial this week:

• Positive Sentiment: Piper Sandler reaffirmed its overweight rating on Pathward Financial and set a $105 price target, suggesting upside from current levels. Article Title
• Positive Sentiment: Keefe, Bruyette & Woods kept an outperform rating on Pathward Financial, with a $97 target, indicating analysts still see room for recovery despite trimming their estimate. Article Title
• Neutral Sentiment: The company highlighted FY2027 EPS guidance of $9.50-$10.00, which is broadly in line with analyst expectations and signals confidence in longer-term earnings power. Article Title
• Negative Sentiment: Pathward reported Q3 EPS of $1.37, well below the $1.95 consensus estimate, and revenue of $189.64 million also missed expectations, reinforcing the earnings disappointment. Article Title
• Negative Sentiment: Management reduced FY2026 EPS guidance to $7.80-$8.20, below the market’s prior expectations, and cited a $34 million commercial finance provision, which raised concerns about credit quality and near-term profitability. Article Title
• Negative Sentiment: Block & Leviton said it is investigating Pathward Financial for possible securities law violations, adding a legal overhang that could pressure investor sentiment. Article Title

Pathward Financial Profile

Pathward Financial NASDAQ: CASH is a U.S.-based financial services company that operates through its wholly owned subsidiary, Pathward Bank. The company provides a range of banking and payment solutions designed for consumers, small businesses, community banks and fintech partners. Core offerings include deposit accounts, consumer and commercial lending, debit and prepaid card programs, digital banking platforms and treasury management services.

Through its banking charter, Pathward Financial delivers customizable payment solutions, including prepaid cards, payroll cards and benefit disbursement programs.

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