Pathward Financial (NASDAQ:CASH) Shares Gap Down Following Weak Earnings

Pathward Financial, Inc. (NASDAQ:CASH)’s stock price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $88.67, but opened at $77.36. Pathward Financial shares last traded at $78.90, with a volume of 50,584 shares traded.

The savings and loans company reported $1.37 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.95 by ($0.58). The company had revenue of $189.64 million for the quarter, compared to analysts’ expectations of $191.18 million. Pathward Financial had a net margin of 21.03% and a return on equity of 20.59%. Pathward Financial has set its FY 2027 guidance at 9.500-10.000 EPS and its FY 2026 guidance at 7.800-8.200 EPS.

Pathward Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Shareholders of record on Thursday, June 11th were paid a dividend of $0.05 per share. The ex-dividend date was Thursday, June 11th. This represents a $0.20 annualized dividend and a yield of 0.2%. Pathward Financial’s dividend payout ratio (DPR) is 2.38%.

Key Headlines Impacting Pathward Financial

Here are the key news stories impacting Pathward Financial this week:

• Positive Sentiment: Piper Sandler reaffirmed its overweight rating on Pathward Financial and set a $105 price target, suggesting upside from current levels. Article Title
• Positive Sentiment: Keefe, Bruyette & Woods kept an outperform rating on Pathward Financial, with a $97 target, indicating analysts still see room for recovery despite trimming their estimate. Article Title
• Neutral Sentiment: The company highlighted FY2027 EPS guidance of $9.50-$10.00, which is broadly in line with analyst expectations and signals confidence in longer-term earnings power. Article Title
• Negative Sentiment: Pathward reported Q3 EPS of $1.37, well below the $1.95 consensus estimate, and revenue of $189.64 million also missed expectations, reinforcing the earnings disappointment. Article Title
• Negative Sentiment: Management reduced FY2026 EPS guidance to $7.80-$8.20, below the market’s prior expectations, and cited a $34 million commercial finance provision, which raised concerns about credit quality and near-term profitability. Article Title
• Negative Sentiment: Block & Leviton said it is investigating Pathward Financial for possible securities law violations, adding a legal overhang that could pressure investor sentiment. Article Title

Analyst Upgrades and Downgrades

Several brokerages have recently commented on CASH. Piper Sandler reiterated an “overweight” rating and issued a $105.00 target price (down from $107.00) on shares of Pathward Financial in a report on Thursday. Weiss Ratings reissued a “buy (b)” rating on shares of Pathward Financial in a research report on Friday, May 8th. Finally, Keefe, Bruyette & Woods cut their price target on shares of Pathward Financial from $108.00 to $97.00 and set an “outperform” rating on the stock in a report on Thursday. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company has a consensus rating of “Buy” and an average target price of $101.00.

Insiders Place Their Bets

In other Pathward Financial news, Director Elizabeth G. Hoople sold 4,500 shares of the business’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $82.29, for a total value of $370,305.00. Following the transaction, the director owned 28,050 shares of the company’s stock, valued at approximately $2,308,234.50. The trade was a 13.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Douglas J. Hajek sold 5,000 shares of the company’s stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $86.37, for a total value of $431,850.00. Following the completion of the transaction, the director owned 12,281 shares of the company’s stock, valued at $1,060,709.97. This trade represents a 28.93% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.43% of the company’s stock.

Institutional Trading of Pathward Financial

A number of large investors have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC boosted its stake in Pathward Financial by 43,200.0% in the second quarter. EverSource Wealth Advisors LLC now owns 433 shares of the savings and loans company’s stock valued at $34,000 after acquiring an additional 432 shares during the last quarter. State of Wyoming purchased a new stake in shares of Pathward Financial during the 2nd quarter worth approximately $46,000. Smartleaf Asset Management LLC increased its stake in shares of Pathward Financial by 23.0% during the 4th quarter. Smartleaf Asset Management LLC now owns 630 shares of the savings and loans company’s stock worth $45,000 after purchasing an additional 118 shares during the last quarter. Rockefeller Capital Management L.P. raised its holdings in shares of Pathward Financial by 225.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 853 shares of the savings and loans company’s stock worth $61,000 after purchasing an additional 591 shares during the period. Finally, New Age Alpha Advisors LLC bought a new stake in shares of Pathward Financial in the 4th quarter worth approximately $77,000. Hedge funds and other institutional investors own 92.66% of the company’s stock.

Pathward Financial Trading Down 6.3%

The company has a quick ratio of 0.80, a current ratio of 0.81 and a debt-to-equity ratio of 0.04. The firm has a 50 day moving average of $84.90 and a 200 day moving average of $87.14. The firm has a market cap of $1.75 billion, a PE ratio of 10.42 and a beta of 0.60.

Pathward Financial Company Profile

Pathward Financial (NASDAQ:CASH) is a U.S.-based financial services company that operates through its wholly owned subsidiary, Pathward Bank. The company provides a range of banking and payment solutions designed for consumers, small businesses, community banks and fintech partners. Core offerings include deposit accounts, consumer and commercial lending, debit and prepaid card programs, digital banking platforms and treasury management services.

Through its banking charter, Pathward Financial delivers customizable payment solutions, including prepaid cards, payroll cards and benefit disbursement programs.