Lincoln National (NYSE:LNC) Shares Gap Up on Better-Than-Expected Earnings

Lincoln National Corporation (NYSE:LNC) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $38.50, but opened at $41.34. Lincoln National shares last traded at $41.3290, with a volume of 588,445 shares traded.

The financial services provider reported $2.21 EPS for the quarter, beating analysts’ consensus estimates of $1.88 by $0.33. The business had revenue of $4.89 billion for the quarter, compared to analyst estimates of $4.85 billion. Lincoln National had a return on equity of 18.77% and a net margin of 11.49%.The business’s revenue for the quarter was down 2.8% compared to the same quarter last year. During the same quarter last year, the company earned $1.91 earnings per share.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. Piper Sandler upped their price objective on shares of Lincoln National from $42.00 to $48.00 and gave the company a “neutral” rating in a research note on Tuesday, December 23rd. Jefferies Financial Group raised their price objective on Lincoln National from $52.00 to $59.00 and gave the stock a “buy” rating in a report on Monday, December 15th. National Bank Financial set a $45.00 target price on Lincoln National in a research note on Thursday, January 8th. Zacks Research lowered Lincoln National from a “strong-buy” rating to a “hold” rating in a research note on Thursday, December 4th. Finally, Mizuho initiated coverage on shares of Lincoln National in a research note on Tuesday, December 16th. They set an “outperform” rating and a $52.00 price objective for the company. Four research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $46.25.

Insider Transactions at Lincoln National

In other news, EVP John Christopher Kennedy sold 3,519 shares of the stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $44.15, for a total value of $155,363.85. Following the completion of the sale, the executive vice president owned 118,985 shares of the company’s stock, valued at $5,253,187.75. This represents a 2.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.51% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in LNC. Norges Bank purchased a new stake in shares of Lincoln National in the second quarter worth about $87,362,000. Jennison Associates LLC lifted its position in Lincoln National by 58.7% during the 4th quarter. Jennison Associates LLC now owns 3,681,158 shares of the financial services provider’s stock worth $163,922,000 after acquiring an additional 1,361,835 shares in the last quarter. Vanguard Group Inc. boosted its holdings in Lincoln National by 6.3% in the 3rd quarter. Vanguard Group Inc. now owns 19,903,720 shares of the financial services provider’s stock worth $802,717,000 after acquiring an additional 1,183,934 shares during the period. Dimensional Fund Advisors LP boosted its holdings in Lincoln National by 25.3% in the 3rd quarter. Dimensional Fund Advisors LP now owns 5,730,727 shares of the financial services provider’s stock worth $231,121,000 after acquiring an additional 1,157,599 shares during the period. Finally, Massachusetts Financial Services Co. MA grew its position in Lincoln National by 21.1% in the third quarter. Massachusetts Financial Services Co. MA now owns 5,952,166 shares of the financial services provider’s stock valued at $240,051,000 after acquiring an additional 1,035,505 shares in the last quarter. 72.81% of the stock is owned by hedge funds and other institutional investors.

Lincoln National Price Performance

The business’s 50 day moving average price is $43.05 and its 200-day moving average price is $41.28. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.61. The company has a market cap of $7.83 billion, a PE ratio of 3.71, a price-to-earnings-growth ratio of 0.42 and a beta of 1.30.

About Lincoln National

Lincoln National Corporation, doing business as Lincoln Financial Group, is a diversified financial services holding company focused on providing retirement, insurance, and wealth management solutions in the United States and select international markets. Headquartered in Radnor, Pennsylvania, the company operates through several business segments, including Retirement Plan Services, Life Insurance, and Group Protection. Its offerings are designed to help individuals, families, and institutions plan and prepare for their financial futures.

The Retirement Plan Services segment delivers recordkeeping, administrative services, and investment management for defined contribution and defined benefit plans.