Wall Street Zen Downgrades Cass Information Systems (NASDAQ:CASS) to Sell

Key Points

• Wall Street Zen has downgraded Cass Information Systems from a "hold" rating to a "sell" rating, indicating potential challenges for the company.
• Recent earnings results revealed that Cass Information Systems reported an earnings per share (EPS) of $0.38, significantly below the consensus estimate of $0.72.
• Several institutional investors have increased their stake in Cass Information Systems, with Creative Planning boosting its position by 102.9% in the second quarter.

Cass Information Systems (NASDAQ:CASS - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Sunday.

A number of other equities research analysts have also commented on CASS. Raymond James Financial initiated coverage on Cass Information Systems in a research report on Tuesday, July 15th. They set an "outperform" rating and a $50.00 price target on the stock. Piper Sandler decreased their price target on Cass Information Systems from $47.00 to $46.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 23rd.

Cass Information Systems Trading Down 0.1%

Shares of CASS opened at $41.24 on Friday. Cass Information Systems has a 1 year low of $38.01 and a 1 year high of $47.14. The stock has a 50 day simple moving average of $42.82 and a 200-day simple moving average of $42.48. The stock has a market cap of $545.19 million, a PE ratio of 22.17 and a beta of 0.48.

Cass Information Systems (NASDAQ:CASS - Get Free Report) last issued its earnings results on Thursday, July 17th. The business services provider reported $0.38 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.72 by ($0.34). Cass Information Systems had a return on equity of 9.02% and a net margin of 13.22%. The company had revenue of $44.40 million during the quarter, compared to analyst estimates of $48.12 million. On average, sell-side analysts forecast that Cass Information Systems will post 2.62 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Creative Planning boosted its position in Cass Information Systems by 102.9% in the 2nd quarter. Creative Planning now owns 10,311 shares of the business services provider's stock valued at $448,000 after buying an additional 5,228 shares during the last quarter. Boston Partners boosted its position in Cass Information Systems by 5.1% in the 2nd quarter. Boston Partners now owns 66,862 shares of the business services provider's stock valued at $2,905,000 after buying an additional 3,242 shares during the last quarter. ProShare Advisors LLC boosted its position in Cass Information Systems by 63.7% in the 2nd quarter. ProShare Advisors LLC now owns 278,138 shares of the business services provider's stock valued at $12,085,000 after buying an additional 108,185 shares during the last quarter. CSM Advisors LLC bought a new position in Cass Information Systems in the 2nd quarter valued at $4,045,000. Finally, Speece Thorson Capital Group Inc. boosted its position in shares of Cass Information Systems by 2.2% in the 2nd quarter. Speece Thorson Capital Group Inc. now owns 330,036 shares of the business services provider's stock worth $14,340,000 after purchasing an additional 7,118 shares during the last quarter. 59.08% of the stock is currently owned by institutional investors.

Cass Information Systems Company Profile

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.

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