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

Pathward Financial, Inc. (NASDAQ:CASH)’s share price gapped down before the market opened on Thursday following a dissappointing 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 trading hands.

The savings and loans company reported $1.37 EPS for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.58). The business had revenue of $189.64 million during the quarter, compared to the consensus estimate of $191.18 million. Pathward Financial had a return on equity of 20.61% and a net margin of 21.03%.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 declared a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Thursday, June 11th were issued a $0.05 dividend. The ex-dividend date was Thursday, June 11th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.2%. Pathward Financial’s dividend payout ratio (DPR) is currently 2.51%.

Trending Headlines about Pathward Financial

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

• Positive Sentiment: Pathward issued FY2027 EPS guidance of $9.50 to $10.00 and reiterated a solid longer-term outlook, which helped offset some of the disappointment from the quarter. Article Title
• Positive Sentiment: Piper Sandler reaffirmed an overweight rating and set a $105 price target, suggesting analysts still see upside from current levels. Article Title
• Positive Sentiment: Keefe, Bruyette & Woods also kept an outperform rating, with a $97 price target, indicating the selloff may have created some value. Article Title
• Neutral Sentiment: Management’s earnings call and presentation focused on quarterly results and outlook, but there was no major new strategic announcement. Article Title
• Negative Sentiment: Pathward reported EPS of $1.37, far below the $1.95 consensus estimate, and revenue also missed expectations, triggering a sharp negative reaction in the stock. Article Title
• Negative Sentiment: The company disclosed a $34 million commercial finance provision, which raised concerns about credit quality and pressured sentiment further. Article Title
• Negative Sentiment: Block & Leviton announced a securities-fraud investigation into Pathward Financial, adding an additional legal overhang for investors. Article Title
• Negative Sentiment: A Seeking Alpha piece highlighted rising credit concerns tied to Pathward’s renewable energy exposure, which may be contributing to the stock’s weakness. Article Title

Wall Street Analysts Forecast Growth

CASH has been the topic of a number of recent research reports. Keefe, Bruyette & Woods dropped their price objective on Pathward Financial from $108.00 to $97.00 and set an “outperform” rating on the stock in a research report on Thursday. 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. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Pathward Financial in a research report on Friday, May 8th. Three investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Pathward Financial currently has an average rating of “Buy” and an average price target of $101.00.

Insider Buying and Selling at Pathward Financial

In other news, Director Douglas J. Hajek sold 5,000 shares of the firm’s stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $86.37, for a total value of $431,850.00. Following the completion of the sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, 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 in the company, valued at approximately $2,308,234.50. This trade represents a 13.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.43% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Pathward Financial

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Wedge Capital Management L L P NC grew its stake in shares of Pathward Financial by 8.8% during the second quarter. Wedge Capital Management L L P NC now owns 13,707 shares of the savings and loans company’s stock worth $1,193,000 after acquiring an additional 1,113 shares during the last quarter. Empowered Funds LLC acquired a new position in shares of Pathward Financial during the first quarter valued at about $8,671,000. Glenmede Trust Co. NA raised its position in shares of Pathward Financial by 3.5% in the 1st quarter. Glenmede Trust Co. NA now owns 17,769 shares of the savings and loans company’s stock valued at $1,586,000 after purchasing an additional 606 shares during the last quarter. RMR Capital Management LLC raised its position in shares of Pathward Financial by 2.4% in the 1st quarter. RMR Capital Management LLC now owns 39,077 shares of the savings and loans company’s stock valued at $3,487,000 after purchasing an additional 908 shares during the last quarter. Finally, Bank of America Corp DE boosted its stake in Pathward Financial by 571.3% in the 1st quarter. Bank of America Corp DE now owns 302,503 shares of the savings and loans company’s stock worth $26,992,000 after purchasing an additional 257,443 shares in the last quarter. 92.66% of the stock is currently owned by hedge funds and other institutional investors.

Pathward Financial Stock Up 3.3%

The company has a market capitalization of $1.81 billion, a price-to-earnings ratio of 10.76 and a beta of 0.60. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.80 and a current ratio of 0.82. The business’s 50 day moving average is $85.02 and its 200 day moving average is $87.13.

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.