Why a New $3 Million Bet on Pathward Stock Signals Confidence in a Bank Posting $7.87 EPS

3 weeks ago 17

Jonathan Ponciano, The Motley Fool

Sun, December 28, 2025 astatine 3:02 PM CST 5 min read

Illinois-based Guardian Wealth Management acquired 40,545 shares of Pathward Financial successful the 3rd quarter.
The involvement was worthy astir $3 cardinal astatine quarter-end.
The caller presumption places Pathward Financial extracurricular the fund’s apical 5 holdings.
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On November 14, Illinois-based Guardian Wealth Management disclosed a caller presumption successful Pathward Financial, Inc. (NASDAQ:CASH), adding 40,545 shares worthy an estimated $3 cardinal successful the 3rd quarter.

According to a Securities and Exchange Commission (SEC) filing dated November 14, Guardian Wealth Management initiated a caller presumption successful Pathward Financial (NASDAQ:CASH) during the 3rd quarter. The money acquired 40,545 shares, bringing the estimated worth of the holding to $3.00 cardinal arsenic of September 30. This determination accounted for 1.77% of the fund’s reportable U.S. equity assets.

Top holdings aft the filing:

NASDAQ:STRL: $11.55 cardinal (6.8% of AUM)
NYSE:ANET: $9.98 cardinal (5.9% of AUM)
NYSE:AZO: $8.61 cardinal (5.1% of AUM)
NYSE:ABBV: $6.98 cardinal (4.1% of AUM)
NYSE:NNI: $6.21 cardinal (3.7% of AUM)

As of Friday, CASH shares were priced astatine $73.44, down astir 2% implicit the past twelvemonth and good underperforming the S&P 500, which is up astir 15% successful the aforesaid period.

Metric

Value

Revenue (TTM)	$673.63 million
Net Income (TTM)	$185.87 million
Dividend Yield	0.3%
Price (as of Friday)	$73.44

Pathward Financial offers a scope of banking products and services, including deposit accounts, commercialized finance, user credit, prepaid cards, and outgo solutions.
The institution generates gross chiefly done involvement income, fees from fiscal products, and outgo processing services crossed user and commercialized segments.
It serves individuals, tiny to mid-sized businesses, and outgo manufacture participants passim the United States.

Pathward Financial, Inc. is simply a diversified fiscal services supplier specializing successful determination banking and outgo solutions. The institution leverages its expertise successful commercialized and user concern to service a wide lawsuit base, with a absorption connected innovative products and scalable work delivery. Its integrated concern exemplary and established beingness successful the fiscal services assemblage presumption it to code evolving lawsuit needs and manufacture trends.

Pathward conscionable closed a fiscal twelvemonth that showed however almighty its level tin beryllium erstwhile equilibrium expanse optimization and interest income are moving together. For semipermanent investors, a operation similar that is acold much important than near-term banal performance.

In its latest net report, Pathward delivered $185.9 cardinal successful nett income for fiscal 2025, oregon $7.87 per diluted stock (up from $7.20 1 twelvemonth ago), portion posting a instrumentality connected mean equity of 23.4%. That benignant of profitability is notable among tiny and mid-sized banks, particularly ones that are inactive shrinking definite portfolios by choice. Net involvement borderline expanded to 7.46% successful the 4th quarter, helped by a little outgo of deposits and a displacement toward higher-yielding commercialized concern assets. Meanwhile, noninterest income besides roseate 13% twelvemonth implicit year, showing that this is not conscionable a rate-driven story.

Within the portfolio context, this involvement looks similar a measured stake alternatively than a condemnation swing. Pathward sits good down the fund’s apical holdings, which thin toward industrials, technology, and healthcare leaders, meaning this positioning looks a batch similar a determination toward much diversification.