Cass Information Systems (NASDAQ:CASS) Sees Strong Trading Volume - Still a Buy?

Key Points

• Analyst sentiment remains moderately bullish: Cass Information Systems has a consensus “Moderate Buy” rating and an average price target of $58.50, though Zacks recently downgraded the stock to “Hold.”
• The company’s latest quarterly results were slightly below expectations, with EPS of $0.71 versus $0.72 forecast; analysts project full-year earnings of approximately $2.99 per share.
• Cass declared a quarterly dividend of $0.32 per share, equivalent to $1.28 annually and a 2.3% yield. Institutional investors and hedge funds own about 59.08% of the company.

Cass Information Systems, Inc (NASDAQ:CASS - Get Free Report) shares saw unusually-high trading volume on Monday . Approximately 49,028 shares traded hands during trading, a decline of 38% from the previous session's volume of 79,311 shares.The stock last traded at $56.04 and had previously closed at $56.65.

Analyst Ratings Changes

A number of research firms have commented on CASS. Raymond James Financial boosted their price target on shares of Cass Information Systems from $52.00 to $56.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 1st. Piper Sandler reissued a "neutral" rating and set a $61.00 target price (up from $52.00) on shares of Cass Information Systems in a report on Thursday, August 6th. Weiss Ratings restated a "buy (b)" rating on shares of Cass Information Systems in a research report on Tuesday, August 4th. Finally, Zacks Research cut Cass Information Systems from a "strong-buy" rating to a "hold" rating in a research report on Thursday, August 13th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $58.50.

Cass Information Systems Stock Performance

The company's 50 day moving average price is $54.59 and its 200-day moving average price is $49.02. The company has a market cap of $716.46 million, a price-to-earnings ratio of 20.12 and a beta of 0.41.

Cass Information Systems (NASDAQ:CASS - Get Free Report) last released its earnings results on Thursday, July 23rd. The business services provider reported $0.71 EPS for the quarter, missing the consensus estimate of $0.72 by ($0.01). The business had revenue of $27.04 million for the quarter, compared to analyst estimates of $51.02 million. Cass Information Systems had a net margin of 18.45% and a return on equity of 14.89%. As a group, sell-side analysts forecast that Cass Information Systems, Inc will post 2.99 earnings per share for the current year.

Cass Information Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 14th. Stockholders of record on Friday, September 4th will be paid a dividend of $0.32 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $1.28 annualized dividend and a dividend yield of 2.3%. Cass Information Systems's dividend payout ratio (DPR) is currently 46.04%.

Institutional Investors Weigh In On Cass Information Systems

A number of institutional investors and hedge funds have recently modified their holdings of CASS. Kingdom Financial Group LLC. acquired a new position in shares of Cass Information Systems in the 4th quarter valued at $26,000. Triumph Capital Management purchased a new stake in Cass Information Systems during the third quarter valued at about $25,000. New York State Teachers Retirement System acquired a new position in shares of Cass Information Systems in the fourth quarter worth about $46,000. Legal & General Group Plc acquired a new position in shares of Cass Information Systems in the second quarter worth about $59,000. Finally, BNP Paribas Financial Markets increased its position in shares of Cass Information Systems by 50.7% in the second quarter. BNP Paribas Financial Markets now owns 1,227 shares of the business services provider's stock worth $53,000 after acquiring an additional 413 shares in the last quarter. 59.08% of the stock is owned by institutional investors and hedge funds.

About Cass Information Systems

Cass Information Systems, Inc provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. The company operates through two segments, Information Services and Banking Services. Its services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. The company also processes and pays facility-related invoices, such as electricity, gas, waste, and telecommunications expenses; and provides telecom expense management solutions, as well as church management software solution and on-line platform to provide generosity services for faith-based and non-profit organizations.

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