CNO Financial Group (NYSE:CNO) Posts Earnings Results, Beats Expectations By $0.27 EPS

Key Points

• CNO Financial Group beat earnings expectations: The company reported quarterly EPS of $1.26, surpassing the $0.99 consensus estimate by $0.27. Revenue reached $1.29 billion, well above analyst expectations of $999.45 million.
• Shares rose 1.1% to $53.52 following the results, near the company’s 52-week high of $54.09. Analysts maintain a consensus “Hold” rating with an average price target of $51.50.
• CNO increased its quarterly dividend to $0.18 from $0.17, implying an annualized dividend of $0.72 and a 1.3% yield. Meanwhile, insiders sold roughly 95,106 shares worth $4.88 million over the past 90 days.

CNO Financial Group (NYSE:CNO - Get Free Report) posted its quarterly earnings data on Thursday. The financial services provider reported $1.26 EPS for the quarter, beating analysts' consensus estimates of $0.99 by $0.27, FiscalAI reports. CNO Financial Group had a return on equity of 17.65% and a net margin of 5.44%.The business had revenue of $1.29 billion for the quarter, compared to analyst estimates of $999.45 million.

CNO Financial Group Trading Up 1.1%

Shares of CNO traded up $0.57 during mid-day trading on Thursday, reaching $53.52. The company had a trading volume of 674,457 shares, compared to its average volume of 713,184. CNO Financial Group has a fifty-two week low of $35.24 and a fifty-two week high of $54.09. The firm has a fifty day simple moving average of $50.70 and a 200-day simple moving average of $45.46. The stock has a market cap of $5.00 billion, a price-to-earnings ratio of 21.50 and a beta of 0.81. The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 1.61.

CNO Financial Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 24th. Shareholders of record on Wednesday, June 10th were issued a $0.18 dividend. This is a boost from CNO Financial Group's previous quarterly dividend of $0.17. The ex-dividend date was Wednesday, June 10th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.3%. CNO Financial Group's dividend payout ratio (DPR) is 28.92%.

Insiders Place Their Bets

In other CNO Financial Group news, CEO Gary C. Bhojwani sold 86,048 shares of the business's stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $51.48, for a total transaction of $4,429,751.04. Following the completion of the sale, the chief executive officer owned 174,264 shares of the company's stock, valued at approximately $8,971,110.72. The trade was a 33.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Rocco F. Tarasi III sold 5,750 shares of the company's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $50.00, for a total value of $287,500.00. Following the sale, the chief marketing officer owned 79,191 shares of the company's stock, valued at $3,959,550. This represents a 6.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 95,106 shares of company stock valued at $4,879,343. Insiders own 3.44% of the company's stock.

Institutional Trading of CNO Financial Group

A number of institutional investors have recently modified their holdings of CNO. Osaic Holdings Inc. raised its holdings in CNO Financial Group by 39.2% in the second quarter. Osaic Holdings Inc. now owns 1,194 shares of the financial services provider's stock valued at $46,000 after buying an additional 336 shares during the period. Pathstone Holdings LLC grew its stake in CNO Financial Group by 1.2% during the third quarter. Pathstone Holdings LLC now owns 36,833 shares of the financial services provider's stock worth $1,457,000 after buying an additional 439 shares during the period. State Board of Administration of Florida Retirement System grew its stake in CNO Financial Group by 0.5% during the fourth quarter. State Board of Administration of Florida Retirement System now owns 90,789 shares of the financial services provider's stock worth $3,856,000 after buying an additional 462 shares during the period. Natixis Advisors LLC increased its position in shares of CNO Financial Group by 4.3% in the third quarter. Natixis Advisors LLC now owns 12,209 shares of the financial services provider's stock worth $483,000 after acquiring an additional 503 shares in the last quarter. Finally, Merit Financial Group LLC raised its stake in shares of CNO Financial Group by 7.0% in the 3rd quarter. Merit Financial Group LLC now owns 7,779 shares of the financial services provider's stock valued at $308,000 after acquiring an additional 510 shares during the period. Hedge funds and other institutional investors own 95.43% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Evercore set a $48.00 price target on shares of CNO Financial Group and gave the stock an "in-line" rating in a research note on Monday, June 1st. Jefferies Financial Group lowered shares of CNO Financial Group from a "buy" rating to a "hold" rating and boosted their price objective for the company from $53.00 to $55.00 in a research report on Friday, July 10th. Keefe, Bruyette & Woods upped their price objective on shares of CNO Financial Group from $50.00 to $53.00 and gave the company a "market perform" rating in a research note on Monday, July 13th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of CNO Financial Group in a research report on Friday, July 17th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $51.50.

CNO Financial Group Company Profile

CNO Financial Group is an Indiana‐based holding company that offers a range of insurance and retirement solutions through its operating subsidiaries. Its primary business activities include life insurance, annuities, and supplemental health insurance products designed to help individuals plan for retirement and manage health‐related expenses. The company serves middle‐income Americans, with particular emphasis on senior customers seeking guaranteed coverage and reliable income streams.

Originally founded as Conseco in 1979, the company underwent a financial restructuring and rebranded as CNO Financial Group in 2010.

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