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 Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Sunday.

A number of other brokerages also recently issued reports on CASS. Raymond James Financial assumed 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 lowered their price objective on Cass Information Systems from $47.00 to $46.00 and set an "overweight" rating on the stock in a report on Wednesday, April 23rd.

Cass Information Systems Price Performance

NASDAQ CASS traded down $0.35 during midday trading on Friday, hitting $42.43. 9,638 shares of the company traded hands, compared to its average volume of 51,655. The company has a market cap of $560.86 million, a PE ratio of 22.81 and a beta of 0.48. Cass Information Systems has a 52 week low of $38.01 and a 52 week high of $47.14. The company's 50-day simple moving average is $42.84 and its 200-day simple moving average is $42.50.

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). The firm had revenue of $44.40 million during the quarter, compared to analysts' expectations of $48.12 million. Cass Information Systems had a return on equity of 9.02% and a net margin of 13.22%. On average, research analysts predict that Cass Information Systems will post 2.62 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CASS. ProShare Advisors LLC boosted its holdings in shares of Cass Information Systems by 63.7% during the 2nd quarter. ProShare Advisors LLC now owns 278,138 shares of the business services provider's stock worth $12,085,000 after purchasing an additional 108,185 shares during the last quarter. CSM Advisors LLC acquired a new position in Cass Information Systems during the second quarter worth $4,045,000. Emmett Investment Management LP acquired a new position in Cass Information Systems during the fourth quarter worth $3,715,000. Nuveen LLC purchased a new stake in shares of Cass Information Systems during the first quarter worth $3,507,000. Finally, Gabelli Funds LLC purchased a new position in Cass Information Systems in the second quarter valued at $3,084,000. 59.08% of the stock is currently 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.