Lincoln National (NYSE:LNC) Shares Down 7.9% Following Analyst Downgrade

Key Points

• Shares of Lincoln National were down 7.9% mid-day after Morgan Stanley cut its price target from $54 to $50 while maintaining an overweight rating; the stock traded as low as $37.29 and last at $36.75.
• The company reported an EPS beat of $2.21 versus $1.86 expected and announced a quarterly dividend of $0.45 (annualized $1.80), reflecting a 5.0% yield.
• Analyst coverage is mixed with a consensus rating of Hold and a $46 consensus target; insiders have recently sold shares and institutional investors own about 72.81% of the company.

Lincoln National Corporation (NYSE:LNC - Get Free Report)'s share price was down 7.9% during mid-day trading on Monday after Morgan Stanley lowered their price target on the stock from $54.00 to $50.00. Morgan Stanley currently has an overweight rating on the stock. Lincoln National traded as low as $37.29 and last traded at $36.7540. Approximately 408,177 shares traded hands during mid-day trading, a decline of 78% from the average daily volume of 1,845,262 shares. The stock had previously closed at $39.90.

Other equities research analysts have also issued research reports about the company. Wells Fargo & Company lifted their target price on Lincoln National from $39.00 to $41.00 and gave the company an "equal weight" rating in a research report on Tuesday, January 13th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Lincoln National in a report on Monday, December 29th. UBS Group increased their target price on shares of Lincoln National from $42.00 to $43.00 and gave the stock a "neutral" rating in a report on Friday, October 31st. Jefferies Financial Group raised their target price on shares of Lincoln National from $52.00 to $59.00 and gave the company a "buy" rating in a research report on Monday, December 15th. Finally, Zacks Research downgraded shares of Lincoln National from a "strong-buy" rating to a "hold" rating in a research note on Thursday, December 4th. 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 data from MarketBeat, Lincoln National has a consensus rating of "Hold" and a consensus target price of $46.00.

Insider Activity

In other news, EVP John Christopher Kennedy sold 3,519 shares of Lincoln National stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $44.15, for a total transaction of $155,363.85. Following the completion of the transaction, the executive vice president directly owned 118,985 shares in the company, valued at approximately $5,253,187.75. The trade was a 2.87% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP James Waltman Reid sold 3,050 shares of the business's stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $41.81, for a total value of $127,520.50. Following the transaction, the executive vice president directly owned 118,567 shares in the company, valued at $4,957,286.27. The trade was a 2.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.54% of the company's stock.

Institutional Trading of Lincoln National

A number of hedge funds have recently modified their holdings of the stock. Baird Financial Group Inc. bought a new stake in shares of Lincoln National during the first quarter worth approximately $241,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Lincoln National by 30.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 71,981 shares of the financial services provider's stock valued at $2,585,000 after purchasing an additional 16,991 shares during the period. Empowered Funds LLC grew its holdings in Lincoln National by 316.9% in the 1st quarter. Empowered Funds LLC now owns 59,115 shares of the financial services provider's stock valued at $2,123,000 after buying an additional 44,936 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Lincoln National by 5.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 623,322 shares of the financial services provider's stock valued at $22,383,000 after buying an additional 29,421 shares in the last quarter. Finally, Focus Partners Wealth increased its position in Lincoln National by 39.1% during the 1st quarter. Focus Partners Wealth now owns 19,530 shares of the financial services provider's stock worth $701,000 after buying an additional 5,486 shares during the period. Institutional investors and hedge funds own 72.81% of the company's stock.

Lincoln National Stock Down 10.6%

The stock has a fifty day moving average price of $42.62 and a two-hundred day moving average price of $41.50. The company has a market cap of $6.78 billion, a price-to-earnings ratio of 6.72, a P/E/G ratio of 1.68 and a beta of 1.31. The company has a quick ratio of 0.27, a current ratio of 0.27 and a debt-to-equity ratio of 0.59.

Lincoln National (NYSE:LNC - Get Free Report) last released its quarterly earnings results on Thursday, February 12th. The financial services provider reported $2.21 EPS for the quarter, topping analysts' consensus estimates of $1.86 by $0.35. The business had revenue of $4.89 billion for the quarter, compared to analyst estimates of $4.85 billion. Lincoln National had a net margin of 6.46% and a return on equity of 18.52%. Lincoln National's revenue for the quarter was down 2.8% compared to the same quarter last year. During the same period last year, the firm earned $1.91 earnings per share. As a group, sell-side analysts expect that Lincoln National Corporation will post 7.69 EPS for the current year.

Lincoln National Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 1st. Investors of record on Friday, April 10th will be given a $0.45 dividend. The ex-dividend date is Friday, April 10th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 5.0%. Lincoln National's dividend payout ratio (DPR) is presently 33.90%.

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.

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