CNO Financial Group Inc. (CNO) Cut to “Strong Sell” at Zacks Investment Research
CNO Financial Group Inc. (NYSE:CNO) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Friday.
According to Zacks, “CNO Financial’s low market share in some product lines might limit business opportunities and leave an adverse impact on profitability. Also the suspension of share buyback plan for this year might affect the bottom line. However, the company has been largely benefited by the Launch of new units like bankers Life Securities and Bankers Life Advisory Services that are likely to help the company in growing its retirement business. A strong capital position and efficient capital management via share buyback and dividend payout also work as strength. Technological advancement has helped the company to increase productivity, though the pressures of agent recruitment continue. The company is presently engaged in strategizing plans to reduce long-term care exposure via run-off of existing non performing businesses, reinsurance and focus on the growth of other potential business lines.”
Several other brokerages have also recently weighed in on CNO. Goldman Sachs Group Inc. cut CNO Financial Group from a “buy” rating to a “neutral” rating and decreased their target price for the company from $21.00 to $17.00 in a research note on Friday, September 30th. Wells Fargo & Co. started coverage on CNO Financial Group in a research note on Thursday, September 22nd. They set an “outperform” rating for the company. BTIG Research cut CNO Financial Group from a “buy” rating to a “neutral” rating in a research note on Friday, September 30th. Morgan Stanley reaffirmed a “hold” rating and set a $19.00 target price on shares of CNO Financial Group in a research note on Thursday, July 28th. Finally, Keefe, Bruyette & Woods decreased their target price on CNO Financial Group from $20.00 to $19.00 and set a “market perform” rating for the company in a research note on Tuesday, August 2nd. One research analyst has rated the stock with a sell rating, six have issued a hold rating and four have assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $18.85.
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CNO Financial Group (NYSE:CNO) traded up 2.27% during trading on Friday, reaching $15.78. 81,482 shares of the company were exchanged. The stock has a market capitalization of $2.76 billion, a PE ratio of 10.60 and a beta of 1.23. CNO Financial Group has a 52-week low of $14.30 and a 52-week high of $20.88. The firm’s 50 day moving average is $15.67 and its 200 day moving average is $17.44.
CNO Financial Group (NYSE:CNO) last issued its quarterly earnings results on Tuesday, July 26th. The company reported $0.35 EPS for the quarter, meeting analysts’ consensus estimates of $0.35. The company had revenue of $1 billion for the quarter, compared to analyst estimates of $961.56 million. CNO Financial Group had a return on equity of 5.68% and a net margin of 7.20%. The company’s quarterly revenue was up 4.6% compared to the same quarter last year. During the same period last year, the company earned $0.34 earnings per share. Analysts expect that CNO Financial Group will post $1.34 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Friday, September 23rd. Investors of record on Friday, September 9th were given a $0.08 dividend. The ex-dividend date was Wednesday, September 7th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 2.07%. CNO Financial Group’s dividend payout ratio (DPR) is 21.48%.
Several institutional investors have recently added to or reduced their stakes in CNO. Vanguard Group Inc. raised its position in CNO Financial Group by 7.0% in the second quarter. Vanguard Group Inc. now owns 13,604,993 shares of the company’s stock worth $237,543,000 after buying an additional 893,798 shares during the period. BlackRock Fund Advisors increased its stake in shares of CNO Financial Group by 1.1% in the second quarter. BlackRock Fund Advisors now owns 8,866,478 shares of the company’s stock valued at $154,809,000 after buying an additional 93,770 shares in the last quarter. State Street Corp increased its stake in shares of CNO Financial Group by 0.3% in the second quarter. State Street Corp now owns 6,743,610 shares of the company’s stock valued at $117,740,000 after buying an additional 21,233 shares in the last quarter. BlackRock Institutional Trust Company N.A. increased its stake in shares of CNO Financial Group by 1.2% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 5,675,380 shares of the company’s stock valued at $99,092,000 after buying an additional 68,220 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. increased its stake in shares of CNO Financial Group by 19.3% in the second quarter. Fuller & Thaler Asset Management Inc. now owns 4,453,154 shares of the company’s stock valued at $77,752,000 after buying an additional 720,360 shares in the last quarter. Institutional investors and hedge funds own 97.67% of the company’s stock.
CNO Financial Group Company Profile
CNO Financial Group, Inc is a holding company for a group of insurance companies operating across the United States that develop, market and administer health insurance, annuity, individual life insurance and other insurance products. It operates through three operating segments: Bankers Life, Washington National and Colonial Penn.
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