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

CSP (NASDAQ:CSPI) was downgraded by Wall Street Zen from a “hold” rating to a “sell” rating in a note issued to investors on Saturday.

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

CSP Stock Up 7.3%

CSPI stock opened at $9.86 on Friday. CSP has a 52 week low of $8.89 and a 52 week high of $20.39. The business has a 50-day simple moving average of $12.05 and a 200 day simple moving average of $11.84. The company has a market cap of $97.61 million, a PE ratio of -197.20 and a beta of 0.73.

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

Hedge Funds Weigh In On CSP

Several institutional investors and hedge funds have recently added to or reduced their stakes in CSPI. Bank of America Corp DE grew its stake in shares of CSP by 3,943.3% during the second quarter. Bank of America Corp DE now owns 2,426 shares of the information technology services provider’s stock worth $31,000 after buying an additional 2,366 shares during the last quarter. Police & Firemen s Retirement System of New Jersey acquired a new stake in shares of CSP during the 2nd quarter valued at $33,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in CSP during the 2nd quarter worth $49,000. Raymond James Financial Inc. acquired a new position in CSP in the 2nd quarter worth about $91,000. Finally, Wells Fargo & Company MN increased its holdings in CSP by 72.6% in the 4th quarter. Wells Fargo & Company MN now owns 7,618 shares of the information technology services provider’s stock worth $95,000 after purchasing an additional 3,204 shares in the last quarter. Institutional investors own 26.74% of the company’s stock.

Key Stories Impacting CSP

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.

About CSP

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.