CSP (NASDAQ:CSPI) Downgraded by Wall Street Zen to Sell

CSP (NASDAQ:CSPI) was downgraded by investment analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Saturday.

Separately, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of CSP in a report on Monday, December 29th. One analyst has rated the stock with a Hold rating, According to data from MarketBeat, CSP presently has an average rating of “Hold”.

CSP Trading Up 7.3%

Shares of NASDAQ CSPI opened at $9.86 on Friday. The company has a market capitalization of $97.61 million, a P/E ratio of -197.20 and a beta of 0.73. CSP has a 12 month low of $8.89 and a 12 month high of $20.39. The stock has a 50 day moving average of $12.05 and a 200-day moving average of $11.84.

CSP (NASDAQ:CSPI) last announced its quarterly earnings results on Thursday, February 12th. The information technology services provider reported $0.01 earnings per share (EPS) for the quarter. CSP had a negative return on equity of 1.03% and a negative net margin of 0.87%.The business had revenue of $12.04 million during the quarter.

Hedge Funds Weigh In On CSP

Several institutional investors and hedge funds have recently modified their holdings of the business. Geode Capital Management LLC boosted its holdings in CSP by 113.0% in the 2nd quarter. Geode Capital Management LLC now owns 158,355 shares of the information technology services provider’s stock valued at $2,049,000 after purchasing an additional 83,999 shares during the period. Visionary Wealth Advisors raised its position in shares of CSP by 5.7% in the second quarter. Visionary Wealth Advisors now owns 740,187 shares of the information technology services provider’s stock valued at $9,578,000 after buying an additional 39,738 shares in the last quarter. Segall Bryant & Hamill LLC raised its position in shares of CSP by 100.2% in the fourth quarter. Segall Bryant & Hamill LLC now owns 38,448 shares of the information technology services provider’s stock valued at $481,000 after buying an additional 19,244 shares in the last quarter. Squarepoint Ops LLC bought a new stake in shares of CSP in the third quarter valued at approximately $157,000. Finally, Goldman Sachs Group Inc. grew its position in CSP by 66.0% during the first quarter. Goldman Sachs Group Inc. now owns 29,800 shares of the information technology services provider’s stock worth $457,000 after buying an additional 11,850 shares in the last quarter. 26.74% of the stock is currently owned by institutional investors and hedge funds.

Key CSP News

Here are the key news stories impacting CSP this week:

• Positive Sentiment: CSP reported GAAP profit for FY2026 Q1, delivered $0.01 EPS on $12.04M revenue, and highlighted a materially higher gross margin (total gross margin ~39.3%) — results that suggest improving operating leverage and a move back to quarterly profitability, which likely lifted investor sentiment. Press Release
• Positive Sentiment: CSP reported 14.6% services revenue growth and cited strong customer retention plus new customer wins for its technology solutions (AZT PROTECT add-ons), signaling recurring revenue momentum that supports future cash flow expectations. Article
• Positive Sentiment: CSP declared a quarterly cash dividend of $0.03 per share (ex-dividend Feb 26, payable Mar 12), representing a ~1.3% yield — a signal of cash generation and returned capital that can attract income-focused investors.
• Neutral Sentiment: Company earnings call/transcript coverage is available (provides management commentary and color on margin drivers, backlog, and product uptake) — useful for investors who want details beyond the headline numbers. Earnings Call Transcript Alternate Transcript
• Neutral Sentiment: Multiple short-interest data posts show a reported “large increase” but the published figures are zero/NaN and the days-to-cover is listed as 0.0 — the data appears inconsistent/erroneous, so it’s unclear if genuine short activity is affecting shares; monitor for corrected filings or clearer short-interest reports.

CSP Company Profile

CSP Inc develops and markets IT integration solutions, security products, managed IT services, cloud services, purpose-built network adapters, and cluster computer systems for commercial and defense customers worldwide. It operates in two segments, Technology Solutions and High Performance Products. The Technology Solutions segment provides third-party computer hardware and software as a value-added reseller to various customers in web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries.