CNO Financial Group (NYSE:CNO) Hits New 12-Month High Following Better-Than-Expected Earnings

Key Points

• CNO Financial Group shares reached a new 52-week high after the company reported quarterly EPS of $1.90, well above the $1.10 analyst consensus, while revenue of $1.09 billion also exceeded expectations.
• The company declared a quarterly dividend of $0.18, equivalent to $0.72 annually and a 1.3% yield. It also repurchased $60 million of stock during the quarter and raised its full-year operating EPS outlook.
• Despite strong earnings and a “Moderate Buy” consensus rating, reported insider selling and analyst price targets around $48–$50 remain potential concerns after the stock’s recent rise.

CNO Financial Group, Inc. (NYSE:CNO - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $57.70 and last traded at $57.48, with a volume of 979,531 shares changing hands. The stock had previously closed at $55.17.

The financial services provider reported $1.90 EPS for the quarter, beating the consensus estimate of $1.10 by $0.80. The company had revenue of $1.09 billion for the quarter, compared to analyst estimates of $1.01 billion. CNO Financial Group had a net margin of 6.02% and a return on equity of 18.76%. During the same quarter last year, the business earned $1.29 earnings per share.

CNO Financial Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th were paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend was Thursday, September 10th. CNO Financial Group's dividend payout ratio (DPR) is currently 24.74%.

Key Headlines Impacting CNO Financial Group

Here are the key news stories impacting CNO Financial Group this week:

• Positive Sentiment: Earnings and revenue beat expectations. Third-quarter net operating income rose to $179.1 million, or $1.90 per diluted share, versus the $1.09–$1.10 analyst consensus. Revenue of approximately $1.09 billion also exceeded expectations of about $1.01 billion. CNO Financial Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Full-year outlook was raised. CNO increased its 2026 operating EPS guidance, with the midpoint 9% above its prior forecast. Net income attributable to common shareholders reached $161.1 million, or $1.71 per diluted share, compared with $23.1 million, or $0.24, a year earlier. CNO Financial Group Reports Third Quarter 2026 Results
• Positive Sentiment: Share repurchases provided additional support. CNO bought back $60 million of stock during the quarter, repurchasing 1.1 million shares at an average price of $54.52. The company also completed a reinsurance transaction covering roughly $270 million of Colonial Penn graded-benefit life reserves, which may improve capital efficiency. CNO Financial Reports Third-Quarter Net Income
• Neutral Sentiment: Revenue declined year over year. Quarterly revenue fell to approximately $1.086 billion from $1.189 billion, although improved profitability more than offset the weaker top line. A portion of the earnings improvement also reflected favorable significant items.
• Negative Sentiment: Insider selling and valuation concerns remain. Reported insider activity showed 18 sales and no purchases over the past six months. In addition, cited analyst price targets of $48–$50 are below the stock’s recent trading level, potentially limiting near-term upside.

Analyst Upgrades and Downgrades

CNO has been the subject of a number of analyst reports. Zacks Research upgraded CNO Financial Group from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, October 20th. Jefferies Financial Group lowered 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. Keefe, Bruyette & Woods raised their target price on CNO Financial Group from $53.00 to $57.00 and gave the stock a "market perform" rating in a research note on Monday, August 3rd. Weiss Ratings cut shares of CNO Financial Group from a "buy (a)" rating to a "buy (a-)" rating in a research report on Friday, October 23rd. Finally, Capital One Financial set a $70.00 price objective on shares of CNO Financial Group in a report on Wednesday, August 26th. Two analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $56.00.

Insider Buying and Selling at CNO Financial Group

In related news, insider Karen J. Detoro sold 9,374 shares of the stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $54.98, for a total transaction of $515,382.52. Following the completion of the transaction, the insider owned 44,250 shares of the company's stock, valued at approximately $2,432,865. This trade represents a 17.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeremy D. Williams sold 4,420 shares of CNO Financial Group stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $55.27, for a total transaction of $244,293.40. Following the completion of the sale, the insider owned 62,163 shares of the company's stock, valued at $3,435,749.01. This trade represents a 6.64% decrease in their position. 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 47,995 shares of company stock valued at $2,641,336 over the last 90 days. 3.44% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of CNO. Louisiana State Employees Retirement System acquired a new position in shares of CNO Financial Group during the first quarter worth $1,125,000. Callan Family Office LLC purchased a new position in shares of CNO Financial Group in the 2nd quarter valued at about $1,089,000. BlackRock Inc. acquired a new stake in shares of CNO Financial Group during the 2nd quarter worth about $682,433,000. Deutsche Bank AG acquired a new stake in shares of CNO Financial Group during the 2nd quarter worth about $6,545,000. Finally, Hsbc Holdings PLC lifted its stake in CNO Financial Group by 102.1% during the fourth quarter. Hsbc Holdings PLC now owns 45,025 shares of the financial services provider's stock worth $1,914,000 after purchasing an additional 22,749 shares during the last quarter. 95.43% of the stock is currently owned by hedge funds and other institutional investors.

CNO Financial Group Stock Performance

The firm has a 50 day moving average of $54.43 and a two-hundred day moving average of $48.40. 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 stock has a market cap of $5.32 billion, a PE ratio of 19.75 and a beta of 0.80.

About CNO Financial Group

CNO Financial Group, Inc is a holding company for a group of insurance and financial services businesses focused on serving middle-income Americans, particularly individuals approaching or in retirement. Through its operating companies, CNO provides products designed to help customers protect income, manage health care expenses and prepare for retirement.

CNO's principal brands include Bankers Life, Colonial Penn and Washington National. Its offerings include life insurance, annuities, supplemental health insurance, Medicare supplement insurance and other insurance products.

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