Cannae (NYSE:CNNE) Shares Gap Down on Disappointing Earnings

Cannae Holdings, Inc. (NYSE:CNNE)’s stock price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $18.80, but opened at $18.20. Cannae shares last traded at $18.09, with a volume of 50,488 shares traded.

The company reported ($0.59) EPS for the quarter, missing the consensus estimate of ($0.56) by ($0.03). The company had revenue of $103.20 million during the quarter, compared to analysts’ expectations of $105.30 million. Cannae had a negative return on equity of 8.26% and a negative net margin of 68.61%. The firm’s quarterly revenue was down 6.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($1.27) EPS.

Cannae Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 30th. Investors of record on Monday, June 16th will be issued a dividend of $0.12 per share. The ex-dividend date is Monday, June 16th. This represents a $0.48 dividend on an annualized basis and a yield of 2.67%. Cannae’s dividend payout ratio is presently -10.17%.

Cannae announced that its Board of Directors has approved a share repurchase program on Tuesday, March 25th that authorizes the company to repurchase 10,000,000 outstanding shares. This repurchase authorization authorizes the company to purchase shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on CNNE. Oppenheimer reduced their price objective on Cannae from $27.00 to $22.00 and set an “outperform” rating for the company in a research note on Friday, March 7th. Royal Bank of Canada reduced their price objective on Cannae from $27.00 to $23.00 and set an “outperform” rating for the company in a research note on Wednesday, February 26th.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in shares of Cannae by 3.6% in the 1st quarter. Vanguard Group Inc. now owns 5,844,675 shares of the company’s stock valued at $107,133,000 after acquiring an additional 205,785 shares during the last quarter. Saba Capital Management L.P. lifted its stake in Cannae by 92.3% in the fourth quarter. Saba Capital Management L.P. now owns 2,219,230 shares of the company’s stock worth $44,074,000 after purchasing an additional 1,065,083 shares during the last quarter. Newtyn Management LLC lifted its stake in Cannae by 18.9% in the fourth quarter. Newtyn Management LLC now owns 1,890,000 shares of the company’s stock worth $37,535,000 after purchasing an additional 300,000 shares during the last quarter. Carronade Capital Management LP raised its stake in shares of Cannae by 145.5% during the fourth quarter. Carronade Capital Management LP now owns 1,728,926 shares of the company’s stock valued at $34,336,000 after acquiring an additional 1,024,663 shares in the last quarter. Finally, Private Management Group Inc. raised its stake in shares of Cannae by 91.1% during the first quarter. Private Management Group Inc. now owns 1,601,334 shares of the company’s stock valued at $29,352,000 after acquiring an additional 763,324 shares in the last quarter. Institutional investors own 88.12% of the company’s stock.

Cannae Stock Down 4.2%

The company’s 50 day moving average price is $17.59 and its two-hundred day moving average price is $19.15. The company has a quick ratio of 2.55, a current ratio of 2.55 and a debt-to-equity ratio of 0.10. The stock has a market cap of $1.13 billion, a P/E ratio of -3.73 and a beta of 1.03.

Cannae Company Profile

Cannae Holdings, Inc is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc was founded in 2014 and is based in Las Vegas, Nevada.