Pathward Financial (NASDAQ:CASH) Shares Gap Down After Earnings Miss

Pathward Financial, Inc. (NASDAQ:CASH) shares gapped down prior to trading 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.

The savings and loans company reported $1.37 earnings per share for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.58). Pathward Financial had a return on equity of 22.35% and a net margin of 22.42%.The business had revenue of $189.64 million during the quarter, compared to analysts’ expectations of $191.18 million. 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 Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 1st. Shareholders 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 yield of 0.3%. Pathward Financial’s payout ratio is currently 2.38%.

Pathward Financial News Roundup

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

• Positive Sentiment: Keefe, Bruyette & Woods kept an outperform rating on Pathward Financial while lowering its price target to $97 from $108, implying upside from the current share price. Article link
• Positive Sentiment: Management raised its long-term outlook, guiding FY2027 EPS to $9.50-$10.00, which suggests earnings can recover after the near-term setback. Article link
• Neutral Sentiment: Earnings-call coverage highlighted strong income growth in parts of the business, but the market focus remained on the miss and lower near-term guidance. Article link
• Negative Sentiment: Q3 results missed analyst expectations on both earnings and revenue, with EPS down from $1.81 a year ago to $1.37, signaling weaker quarterly performance. Article link
• Negative Sentiment: The company trimmed FY2026 EPS guidance to $7.80-$8.20, below the Street’s expectations, which adds pressure to the stock. Article link

Wall Street Analyst Weigh In

CASH has been the subject of a number of research analyst reports. Piper Sandler reiterated an “overweight” rating and issued a $105.00 price target (down from $107.00) on shares of Pathward Financial in a research note on Thursday. Keefe, Bruyette & Woods lowered 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. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Pathward Financial in a research note on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating, According to MarketBeat, the stock has an average rating of “Buy” and an average price target of $101.00.

Insider Activity

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC boosted its holdings in Pathward Financial by 43,200.0% during the 2nd 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 period. Smartleaf Asset Management LLC grew its holdings in 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 acquiring an additional 118 shares in the last quarter. State of Wyoming purchased a new position in Pathward Financial in the second quarter valued at $46,000. Rockefeller Capital Management L.P. increased 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 valued at $61,000 after acquiring an additional 591 shares during the last quarter. Finally, New Age Alpha Advisors LLC purchased a new position in Pathward Financial in the fourth quarter valued at approximately $77,000. 92.66% of the stock is currently owned by hedge funds and other institutional investors.

Pathward Financial Price Performance

The company has a current ratio of 0.81, a quick ratio of 0.80 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $1.67 billion, a price-to-earnings ratio of 9.40 and a beta of 0.60. The company’s 50 day moving average is $84.86 and its 200 day moving average is $87.06.

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.