Lincoln National (NYSE:LNC) Shares Gap Up - Here's What Happened

Key Points

• Lincoln National shares opened higher, rising from a prior close of $42.59 to $43.87 before trading around $42.78. The stock’s average analyst rating is “Hold,” with an average price target of $47.07.
• The company exceeded quarterly expectations, reporting $2.24 in EPS versus the $1.96 consensus and $4.93 billion in revenue, up 12.3% year over year. Analysts expect full-year EPS of approximately $7.97.
• Lincoln National declared a quarterly dividend of $0.45 per share, equivalent to $1.80 annually and a 4.2% yield. Insiders sold 56,007 shares worth about $1.93 million over the latest quarter.

Lincoln National Corporation (NYSE:LNC - Get Free Report) shares gapped up prior to trading on Tuesday . The stock had previously closed at $42.59, but opened at $43.87. Lincoln National shares last traded at $42.7820, with a volume of 88,951 shares.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the stock. UBS Group increased their price target on shares of Lincoln National from $39.00 to $44.00 and gave the stock a "neutral" rating in a report on Wednesday, July 8th. TD Cowen upped their price objective on shares of Lincoln National from $37.00 to $42.00 and gave the stock a "hold" rating in a research report on Wednesday, July 22nd. Barclays raised shares of Lincoln National from an "equal weight" rating to an "overweight" rating and increased their target price for the stock from $42.00 to $45.00 in a research note on Monday, July 6th. Mizuho raised their target price on Lincoln National from $51.00 to $53.00 and gave the company an "outperform" rating in a research report on Friday, July 31st. Finally, Morgan Stanley upped their price target on Lincoln National from $40.00 to $50.00 and gave the stock an "overweight" rating in a report on Monday, August 24th. Seven analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $47.07.

Lincoln National Trading Down 0.2%

The company's fifty day simple moving average is $41.80 and its 200-day simple moving average is $37.95. The firm has a market capitalization of $8.14 billion, a PE ratio of 3.68, a P/E/G ratio of 1.53 and a beta of 1.14. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.27 and a quick ratio of 0.27.

Lincoln National (NYSE:LNC - Get Free Report) last released its earnings results on Thursday, July 30th. The financial services provider reported $2.24 EPS for the quarter, topping analysts' consensus estimates of $1.96 by $0.28. The business had revenue of $4.93 billion during the quarter, compared to analysts' expectations of $4.89 billion. Lincoln National had a net margin of 12.21% and a return on equity of 17.35%. The company's quarterly revenue was up 12.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.36 earnings per share. As a group, sell-side analysts expect that Lincoln National Corporation will post 7.97 earnings per share for the current fiscal year.

Lincoln National Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Monday, October 12th will be issued a dividend of $0.45 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 4.2%. Lincoln National's dividend payout ratio is presently 15.60%.

Insider Activity

In other news, EVP Sean Woodroffe sold 11,000 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $45.28, for a total value of $498,080.00. Following the transaction, the executive vice president owned 119,947 shares in the company, valued at $5,431,200.16. This trade represents a 8.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Craigt T. Beazer sold 30,000 shares of Lincoln National stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $34.45, for a total value of $1,033,500.00. Following the completion of the sale, the executive vice president directly owned 103,906 shares in the company, valued at $3,579,561.70. This represents a 22.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 56,007 shares of company stock worth $1,929,266 over the last quarter. 1.03% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lincoln National

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Transamerica Financial Advisors LLC acquired a new stake in shares of Lincoln National in the fourth quarter valued at about $32,000. JPL Wealth Management LLC acquired a new position in Lincoln National during the third quarter worth about $29,000. Trust Co. of Vermont purchased a new stake in Lincoln National during the 2nd quarter valued at about $28,000. Los Angeles Capital Management LLC purchased a new stake in Lincoln National during the 4th quarter valued at about $34,000. Finally, NBT Bank N A NY raised its holdings in Lincoln National by 2,051.1% in the 1st quarter. NBT Bank N A NY now owns 968 shares of the financial services provider's stock valued at $34,000 after acquiring an additional 923 shares during the last quarter. Institutional investors and hedge funds own 72.81% of the company's stock.

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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