Cannae (NYSE:CNNE) Hits New 1-Year Low - Should You Sell?

Key Points

• New 52-week low: Cannae (NYSE:CNNE) traded as low as $10.46 and last at $10.64 on heavy volume (~1.27M shares), down about 2.2% and below its 50- and 200-day moving averages.
• Big earnings miss and weak profitability: Cannae reported EPS of ($1.93) vs. ($0.38) expected, with a negative ROE (31.78%) and net margin (‑121.15%), and analysts now model continued negative EPS for the year.
• Dividend and analyst stance: The company declared a $0.15 quarterly dividend (annualized $0.60, ~5.6% yield) despite a negative DPR, while analyst coverage is mixed (average "Hold", $16 target) and RBC recently cut its target from $19 to $16.

Cannae Holdings, Inc. (NYSE:CNNE - Get Free Report)'s stock price hit a new 52-week low on Wednesday . The company traded as low as $10.46 and last traded at $10.6440, with a volume of 1266023 shares traded. The stock had previously closed at $10.88.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CNNE. Royal Bank Of Canada reduced their price target on shares of Cannae from $19.00 to $16.00 and set an "outperform" rating on the stock in a report on Tuesday, February 24th. Weiss Ratings reissued a "sell (d-)" rating on shares of Cannae in a report on Friday, January 9th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Cannae has an average rating of "Hold" and an average target price of $16.00.

Cannae Trading Down 2.2%

The company has a market cap of $493.14 million, a PE ratio of -1.19 and a beta of 1.11. The stock's 50 day moving average is $13.29 and its 200-day moving average is $15.85. The company has a quick ratio of 2.07, a current ratio of 2.07 and a debt-to-equity ratio of 0.07.

Cannae (NYSE:CNNE - Get Free Report) last issued its quarterly earnings data on Monday, February 23rd. The company reported ($1.93) EPS for the quarter, missing analysts' consensus estimates of ($0.38) by ($1.55). Cannae had a negative return on equity of 31.78% and a negative net margin of 121.15%.The business had revenue of $103.30 million during the quarter, compared to analysts' expectations of $102.70 million. During the same period in the previous year, the business earned ($0.74) earnings per share. The business's quarterly revenue was down 6.0% on a year-over-year basis. As a group, sell-side analysts anticipate that Cannae Holdings, Inc. will post -3.14 EPS for the current year.

Cannae Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be issued a $0.15 dividend. The ex-dividend date of this dividend is Tuesday, March 17th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 5.6%. Cannae's dividend payout ratio (DPR) is presently -6.73%.

Institutional Investors Weigh In On Cannae

Large investors have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Cannae by 4.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 33,465 shares of the company's stock valued at $613,000 after purchasing an additional 1,405 shares during the last quarter. Goldman Sachs Group Inc. increased its position in shares of Cannae by 4.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 299,843 shares of the company's stock valued at $5,496,000 after purchasing an additional 11,788 shares during the last quarter. Jane Street Group LLC raised its holdings in Cannae by 95.4% during the 1st quarter. Jane Street Group LLC now owns 54,393 shares of the company's stock valued at $997,000 after buying an additional 26,550 shares during the period. Geode Capital Management LLC raised its holdings in Cannae by 1.9% during the 2nd quarter. Geode Capital Management LLC now owns 1,347,741 shares of the company's stock valued at $28,104,000 after buying an additional 24,902 shares during the period. Finally, Police & Firemen s Retirement System of New Jersey lifted its position in Cannae by 6.3% in the second quarter. Police & Firemen s Retirement System of New Jersey now owns 12,189 shares of the company's stock worth $254,000 after buying an additional 725 shares during the last quarter. 88.12% of the stock is owned by institutional investors.

Cannae Company Profile

Cannae Holdings, Inc NYSE: CNNE is a publicly traded diversified holding company that focuses on partnering with and investing in businesses across a range of industry sectors. The company seeks to identify attractive opportunities in both private and public markets, leveraging its capital resources and management expertise to support operational growth and value creation. Cannae's investment strategy emphasizes companies in data and analytics, marketing services, healthcare technology, and payment processing.

Through its portfolio, Cannae holds controlling or significant minority stakes in companies that provide critical software, data and services to corporate clients.

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