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

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

The savings and loans company reported $1.37 EPS 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 firm had revenue of $189.64 million for the quarter, compared to the consensus estimate 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 disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Thursday, June 11th were given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a dividend yield of 0.3%. The ex-dividend date was Thursday, June 11th. Pathward Financial’s dividend payout ratio (DPR) is presently 2.38%.

Trending Headlines about Pathward Financial

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

Analysts Set New Price Targets

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

Insiders Place Their Bets

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

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Seros Financial LLC bought a new stake in Pathward Financial during the third quarter worth approximately $481,003,000. Revolve Wealth Partners LLC bought a new position in Pathward Financial during the fourth quarter valued at $267,437,000. Bank of America Corp DE grew its holdings in Pathward Financial by 571.3% during the 1st quarter. Bank of America Corp DE now owns 302,503 shares of the savings and loans company’s stock valued at $26,992,000 after purchasing an additional 257,443 shares during the last quarter. Comerica Bank raised its holdings in shares of Pathward Financial by 371.2% in the fourth quarter. Comerica Bank now owns 295,999 shares of the savings and loans company’s stock worth $21,016,000 after buying an additional 233,177 shares during the period. Finally, Goldman Sachs Group Inc. increased its stake in Pathward Financial by 30.9% in the fourth quarter. Goldman Sachs Group Inc. now owns 247,832 shares of the savings and loans company’s stock worth $17,596,000 after purchasing an additional 58,510 shares during the period. Institutional investors own 92.66% of the company’s stock.

Pathward Financial Stock Down 10.7%

The company has a market cap of $1.67 billion, a PE 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. The company has a current ratio of 0.81, a quick ratio of 0.80 and a debt-to-equity ratio of 0.04.

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.