Davis Asset Management L.P. Buys Shares of 950,000 CNO Financial Group, Inc. $CNO

Key Points

• Davis Asset Management initiated a position of 950,000 CNO Financial Group shares worth approximately $32 million, representing 1.03% ownership. Institutional investors collectively held 95.43% of the company.
• CNO reported strong quarterly results, with adjusted earnings of $1.26 per share versus the $0.97 consensus estimate and revenue of $1.29 billion, up 11.6% year over year.
• The company declared a quarterly dividend of $0.18 per share, equal to a $0.72 annualized payout and a 1.3% yield. Analysts maintain a consensus “Hold” rating with an average price target of $52.50.

Davis Asset Management L.P. bought a new position in CNO Financial Group, Inc. (NYSE:CNO - Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 950,000 shares of the financial services provider's stock, valued at approximately $32,024,000. Davis Asset Management L.P. owned 1.03% of CNO Financial Group at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Versant Capital Management Inc raised its holdings in shares of CNO Financial Group by 72.0% in the second quarter. Versant Capital Management Inc now owns 1,132 shares of the financial services provider's stock valued at $58,000 after acquiring an additional 474 shares in the last quarter. Bessemer Group Inc. grew its holdings in CNO Financial Group by 75.4% during the 1st quarter. Bessemer Group Inc. now owns 1,133 shares of the financial services provider's stock worth $46,000 after acquiring an additional 487 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in CNO Financial Group by 123.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,176 shares of the financial services provider's stock worth $45,000 after acquiring an additional 649 shares in the last quarter. Osaic Holdings Inc. increased its position in CNO Financial Group by 39.2% during the 2nd quarter. Osaic Holdings Inc. now owns 1,194 shares of the financial services provider's stock valued at $46,000 after purchasing an additional 336 shares during the period. Finally, Geneos Wealth Management Inc. increased its position in CNO Financial Group by 637.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,438 shares of the financial services provider's stock valued at $60,000 after purchasing an additional 1,243 shares during the period. Institutional investors own 95.43% of the company's stock.

CNO Financial Group Price Performance

CNO opened at $53.40 on Friday. The firm has a market capitalization of $4.94 billion, a PE ratio of 18.35 and a beta of 0.81. The company has a debt-to-equity ratio of 1.65, a current ratio of 0.17 and a quick ratio of 0.17. The business's 50-day moving average is $53.11 and its two-hundred day moving average is $46.98. CNO Financial Group, Inc. has a 1 year low of $38.22 and a 1 year high of $57.59.

CNO Financial Group (NYSE:CNO - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The financial services provider reported $1.26 EPS for the quarter, beating the consensus estimate of $0.97 by $0.29. CNO Financial Group had a net margin of 6.02% and a return on equity of 18.76%. The business had revenue of $1.29 billion during the quarter, compared to analyst estimates of $999.45 million. During the same period in the prior year, the firm posted $0.87 earnings per share. The company's quarterly revenue was up 11.6% on a year-over-year basis. Research analysts anticipate that CNO Financial Group, Inc. will post 4.74 earnings per share for the current fiscal year.

CNO Financial Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 10th will be paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Thursday, September 10th. CNO Financial Group's payout ratio is 24.74%.

Wall Street Analysts Forecast Growth

CNO has been the subject of several recent research reports. Evercore set a $48.00 price target on shares of CNO Financial Group and gave the company an "in-line" rating in a report on Monday, June 1st. Weiss Ratings upgraded shares of CNO Financial Group from a "buy (b)" rating to a "buy (b+)" rating in a research note on Tuesday, August 11th. Keefe, Bruyette & Woods lifted their price objective on shares of CNO Financial Group from $53.00 to $57.00 and gave the company a "market perform" rating in a report on Monday, August 3rd. Jefferies Financial Group downgraded shares of CNO Financial Group from a "buy" rating to a "hold" rating and boosted their price objective for the stock from $53.00 to $55.00 in a research note on Friday, July 10th. Finally, Wall Street Zen upgraded CNO Financial Group from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $52.50.

Insider Buying and Selling

In related news, CEO Gary C. Bhojwani sold 86,048 shares of the stock in a transaction that occurred on Tuesday, June 30th. The shares were 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 $8,971,110.72. This represents a 33.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 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 firm's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $50.00, for a total transaction of $287,500.00. Following the completion of the sale, the chief marketing officer owned 79,191 shares of the company's stock, valued at approximately $3,959,550. This trade represents a 6.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 95,106 shares of company stock valued at $4,879,343 in the last three months. 3.44% of the stock is currently owned by corporate insiders.

About CNO Financial Group

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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