Cadre (NYSE:CDRE) Shares Gap Down on Disappointing Earnings

Shares of Cadre Holdings, Inc. (NYSE:CDRE) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $34.35, but opened at $31.00. Cadre shares last traded at $30.74, with a volume of 260,051 shares trading hands.

The company reported $0.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.07). The firm had revenue of $137.86 million for the quarter, compared to analyst estimates of $127.99 million. Cadre had a return on equity of 21.85% and a net margin of 8.01%. The firm’s quarterly revenue was up 23.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.19 EPS.

Cadre Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 17th. Shareholders of record on Friday, May 3rd will be given a dividend of $0.0875 per share. The ex-dividend date is Thursday, May 2nd. This represents a $0.35 dividend on an annualized basis and a yield of 1.15%. Cadre’s payout ratio is presently 34.31%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on CDRE. Roth Mkm reiterated a “buy” rating and set a $43.00 target price (up previously from $38.00) on shares of Cadre in a research report on Wednesday, March 6th. Stephens lifted their price objective on shares of Cadre from $36.00 to $40.00 and gave the stock an “overweight” rating in a research note on Friday, February 16th. Raymond James lowered shares of Cadre from an “outperform” rating to a “market perform” rating in a report on Monday, January 22nd. B. Riley restated a “buy” rating and issued a $48.00 price objective (up previously from $40.00) on shares of Cadre in a research report on Wednesday, March 6th. Finally, Stifel Nicolaus lifted their target price on Cadre from $33.00 to $34.00 and gave the stock a “hold” rating in a report on Wednesday, March 6th. Two investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $41.25.

Insider Transactions at Cadre

In other news, CEO Warren B. Kanders sold 1,438,127 shares of the business’s stock in a transaction dated Tuesday, March 19th. The stock was sold at an average price of $35.00, for a total value of $50,334,445.00. Following the sale, the chief executive officer now directly owns 12,184,918 shares in the company, valued at $426,472,130. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 49.20% of the stock is owned by insiders.

Institutional Trading of Cadre

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Legato Capital Management LLC acquired a new position in Cadre during the fourth quarter worth $245,000. FMR LLC grew its stake in Cadre by 12.4% in the third quarter. FMR LLC now owns 5,637,904 shares of the company’s stock valued at $150,250,000 after purchasing an additional 621,116 shares in the last quarter. Oak Ridge Investments LLC acquired a new position in shares of Cadre during the 4th quarter worth approximately $1,930,000. Vanguard Group Inc. raised its stake in shares of Cadre by 2.0% during the 3rd quarter. Vanguard Group Inc. now owns 931,296 shares of the company’s stock worth $24,819,000 after purchasing an additional 18,173 shares in the last quarter. Finally, SG Americas Securities LLC acquired a new stake in shares of Cadre in the 4th quarter valued at approximately $229,000. 43.95% of the stock is currently owned by institutional investors and hedge funds.

Cadre Stock Performance

The stock’s fifty day moving average is $35.14 and its two-hundred day moving average is $33.40. The firm has a market capitalization of $1.23 billion, a price-to-earnings ratio of 31.02, a P/E/G ratio of 1.80 and a beta of 1.35. The company has a quick ratio of 1.73, a current ratio of 2.58 and a debt-to-equity ratio of 0.65.

About Cadre

Cadre Holdings, Inc manufactures and distributes safety that provides protection to users in hazardous or life-threatening situations in the United States and internationally. The company operates in two segments, Products and Distribution. It offers body armor product, such as concealable, corrections, and tactical armor under the Safariland and Protech Tactical brand names; survival suits, remotely operated vehicles, specialty tools, blast sensors, accessories, and vehicle blast attenuation seats for bomb safety technicians; bomb suits; duty gear, including belts and accessories; and other protective equipment comprising communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products.