Zacks Investment Research downgraded shares of CNO Financial Group (NYSE:CNO) from a hold rating to a sell rating in a research report report published on Tuesday morning.
According to Zacks, “CNO Financial’s shares have lost in a year’s time, wider than its industry’s decline. However, increasing trend in interest expenses has been raising the company’s financial risk and hurting profitability. The company has been continuously witnessing a rise in its operating expenses. It is expected that the same will rise going forward, which will continue to hurt its bottom-line. The company’s Bankers Life and Washington National segment is poised for growth as well. Its tie-up with Wilton Reassurance Company will likely boost its growth going forward.”
A number of other equities analysts have also recently commented on CNO. ValuEngine cut CNO Financial Group from a sell rating to a strong sell rating in a report on Monday, July 2nd. Keefe, Bruyette & Woods reissued a hold rating and set a $24.00 target price on shares of CNO Financial Group in a report on Friday, August 17th. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the company’s stock. CNO Financial Group has an average rating of Hold and an average target price of $23.75.
CNO Financial Group (NYSE:CNO) last announced its earnings results on Wednesday, August 1st. The financial services provider reported $0.49 EPS for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.01). CNO Financial Group had a net margin of 5.12% and a return on equity of 7.11%. The firm had revenue of $1.05 billion for the quarter, compared to analyst estimates of $1.04 billion. During the same period in the previous year, the company earned $0.45 EPS. CNO Financial Group’s revenue was down 1.0% compared to the same quarter last year. As a group, equities research analysts anticipate that CNO Financial Group will post 1.97 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Monday, September 24th. Shareholders of record on Monday, September 10th were issued a dividend of $0.10 per share. The ex-dividend date was Friday, September 7th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 2.02%. CNO Financial Group’s payout ratio is currently 19.80%.
In other news, EVP Bruce K. Baude sold 33,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 7th. The stock was sold at an average price of $22.17, for a total value of $731,610.00. Following the completion of the sale, the executive vice president now directly owns 52,047 shares in the company, valued at $1,153,881.99. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 2.30% of the stock is owned by corporate insiders.
Several hedge funds have recently bought and sold shares of the company. Seven Eight Capital LP purchased a new stake in shares of CNO Financial Group in the third quarter valued at approximately $1,190,000. Aperio Group LLC grew its position in shares of CNO Financial Group by 10.1% in the third quarter. Aperio Group LLC now owns 104,201 shares of the financial services provider’s stock valued at $2,211,000 after purchasing an additional 9,516 shares in the last quarter. Foundry Partners LLC purchased a new stake in shares of CNO Financial Group in the third quarter valued at approximately $11,087,000. Scout Investments Inc. grew its position in shares of CNO Financial Group by 2.1% in the third quarter. Scout Investments Inc. now owns 180,526 shares of the financial services provider’s stock valued at $3,831,000 after purchasing an additional 3,777 shares in the last quarter. Finally, Bank of Montreal Can grew its position in shares of CNO Financial Group by 20.0% in the third quarter. Bank of Montreal Can now owns 130,352 shares of the financial services provider’s stock valued at $2,765,000 after purchasing an additional 21,752 shares in the last quarter. Institutional investors and hedge funds own 92.93% of the company’s stock.
CNO Financial Group Company Profile
CNO Financial Group, Inc, through its subsidiaries, develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. It operates through Bankers Life, Washington National, Colonial Penn, and Long-Term Care in Run Off segments.
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