MKM Partners Reiterates a Hold Rating on Cato Corp.

By Carrie Williams

In a report released today, Patrick Mckeever from MKM Partners reiterated a Hold rating on Cato Corp. (NYSE: CATO), with a price target of $30. The company’s shares closed yesterday at $32.50.

Mckeever wrote:

“We are incrementally negative but think the stock will find some support from Cato’s strong balance sheet and dividend (yield is 4.1%) and from the just-announced 2.0 million share buyback authorization.”

According to TipRanks.com, Mckeever is a 4-star analyst with an average return of 5.2% and a 66.1% success rate. Mckeever covers the Services sector, focusing on stocks such as Dick’s Sporting Goods, Wal-Mart Stores, and Dollar General.

Cato Corp. has an analyst consensus of Hold, with a price target consensus of $30.

The company has a one year high of $40.51 and a one year low of $28.40. Currently, Cato Corp. has an average volume of 141.5K.

Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CATO in relation to earlier this year. Most recently, in March 2016, John Cato, the CHAIRMAN of CATO bought 8,051 shares for a total of $189,682.

The Cato Corp. operates as a retailer of women’s fashions and accessories. The company offers fashion apparel and accessories at everyday low prices in junior, missy and plus sizes as well as girls sizes. Its merchandise is sold under its private labels and is produced by various vendors in accordance with the company’s specifications. The company through four segments: Cato, It’s Fashion, Versona and Credit. The company operates fashion specialty stores principally in the southeastern United States under the names Cato, Cato Fashions, Cato Plus and It’s Fashion, It’s Fashion Metro and Versona Accessories. The Cato concept’s stores a broad assortment of apparel and accessories, including dressy, career and casual sportswear, dresses, coats, shoes, lingerie, costume jewelry and handbags. Its Fashion Metro concepts offers fashion with a focus on the latest trendy styles and nationally recognized urban brands for the entire family at low prices every day. The Versona Accessories is a unique fashion destination offers accessories and apparel, including jewelry, handbags and shoes. It owns and offers its credit card and layaway plan. The Cato was founded in 1946 and is headquartered in Charlotte, NC.