Cass Information Systems (NASDAQ:CASS) Trading Down 3.7% on Disappointing Earnings

Cass Information Systems, Inc (NASDAQ:CASS)’s share price dropped 3.7% during mid-day trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $43.99 and last traded at $43.13. Approximately 9,337 shares were traded during trading, a decline of 80% from the average daily volume of 46,108 shares. The stock had previously closed at $44.79.

The business services provider reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.72 by ($0.34). Cass Information Systems had a net margin of 13.22% and a return on equity of 9.09%. The company had revenue of $44.40 million for the quarter, compared to the consensus estimate of $48.12 million.

Cass Information Systems Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, September 5th will be issued a dividend of $0.31 per share. The ex-dividend date is Friday, September 5th. This represents a $1.24 annualized dividend and a yield of 2.88%. Cass Information Systems’s dividend payout ratio (DPR) is currently 66.67%.

Wall Street Analysts Forecast Growth

CASS has been the topic of several recent research reports. Piper Sandler cut their target price 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. Raymond James Financial assumed coverage on Cass Information Systems in a research note on Tuesday. They issued an “outperform” rating and a $50.00 price objective on the stock. Finally, Wall Street Zen upgraded Cass Information Systems from a “sell” rating to a “hold” rating in a research note on Sunday, July 13th.

Hedge Funds Weigh In On Cass Information Systems

A number of institutional investors have recently made changes to their positions in CASS. Emmett Investment Management LP bought a new position in shares of Cass Information Systems in the fourth quarter worth about $3,715,000. Nuveen LLC bought a new position in shares of Cass Information Systems in the first quarter worth about $3,507,000. Hotchkis & Wiley Capital Management LLC grew its position in Cass Information Systems by 92.0% during the first quarter. Hotchkis & Wiley Capital Management LLC now owns 141,770 shares of the business services provider’s stock worth $6,132,000 after buying an additional 67,950 shares in the last quarter. Heartland Advisors Inc. grew its position in Cass Information Systems by 13.7% during the first quarter. Heartland Advisors Inc. now owns 473,926 shares of the business services provider’s stock worth $20,497,000 after buying an additional 56,979 shares in the last quarter. Finally, Uniplan Investment Counsel Inc. grew its position in Cass Information Systems by 114.4% during the first quarter. Uniplan Investment Counsel Inc. now owns 90,919 shares of the business services provider’s stock worth $3,932,000 after buying an additional 48,516 shares in the last quarter. 59.08% of the stock is currently owned by institutional investors.

Cass Information Systems Stock Down 4.0%

The firm has a market capitalization of $574.61 million, a price-to-earnings ratio of 23.12 and a beta of 0.45. The business has a 50-day moving average of $43.20 and a two-hundred day moving average of $42.33.

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.