CNO Financial Group (NYSE:CNO) Lowered to “Sell” at Zacks Investment Research

CNO Financial Group (NYSE:CNO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Thursday, Zacks.com reports. They presently have a $17.00 price objective on the financial services provider’s stock. Zacks Investment Research‘s price target suggests a potential upside of 5.59% from the stock’s previous close.

According to Zacks, “CNO Financial’s top-line has been witnessing growth over the past several years. Its Bankers Life and Washington National segments are poised for growth as well. Its tie-up with Wilton Reassurance Company on the back of growth initiatives launched in the last two years, will likely boost its growth going forward. Its capital management also impresses. However, its shares have underperformed its industry in a year's time. Its earnings per share of 48 cents came in line with the Zacks Consensus Estimate, but were down 2% year over year in the second quarter of 2019. Its deteriorating debt burden persists to elevate interest expenses, which drains the margins. Expenses of the company are expected to increase going forward and might drag its bottom line. The company’s performance was negatively impacted by its Long-term care segment.”

Shares of NYSE:CNO remained flat at $$16.10 during midday trading on Thursday. The company had a trading volume of 232,084 shares, compared to its average volume of 1,010,332. The stock has a fifty day moving average price of $15.27 and a 200 day moving average price of $16.26. The company has a current ratio of 0.25, a quick ratio of 0.25 and a debt-to-equity ratio of 0.62. The company has a market capitalization of $2.36 billion, a PE ratio of 8.80 and a beta of 1.23. CNO Financial Group has a 1 year low of $13.64 and a 1 year high of $22.13.

CNO Financial Group (NYSE:CNO) last issued its quarterly earnings data on Tuesday, July 30th. The financial services provider reported $0.48 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.48. The firm had revenue of $979.80 million during the quarter, compared to the consensus estimate of $956.66 million. CNO Financial Group had a positive return on equity of 7.71% and a negative net margin of 9.67%. The company’s quarterly revenue was down 6.4% on a year-over-year basis. During the same period last year, the company earned $0.49 EPS. On average, analysts expect that CNO Financial Group will post 1.9 EPS for the current year.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CNO. Citadel Advisors LLC grew its position in CNO Financial Group by 106.9% in the 2nd quarter. Citadel Advisors LLC now owns 2,853,670 shares of the financial services provider’s stock valued at $47,599,000 after acquiring an additional 1,474,518 shares in the last quarter. Pzena Investment Management LLC grew its position in CNO Financial Group by 60.3% in the 2nd quarter. Pzena Investment Management LLC now owns 3,855,224 shares of the financial services provider’s stock valued at $64,305,000 after acquiring an additional 1,450,851 shares in the last quarter. Paradice Investment Management LLC grew its position in CNO Financial Group by 14.0% in the 2nd quarter. Paradice Investment Management LLC now owns 5,008,089 shares of the financial services provider’s stock valued at $83,535,000 after acquiring an additional 614,372 shares in the last quarter. Nuveen Asset Management LLC grew its position in CNO Financial Group by 24.0% in the 2nd quarter. Nuveen Asset Management LLC now owns 2,783,780 shares of the financial services provider’s stock valued at $46,433,000 after acquiring an additional 539,021 shares in the last quarter. Finally, AQR Capital Management LLC grew its position in CNO Financial Group by 67.7% in the 2nd quarter. AQR Capital Management LLC now owns 1,200,757 shares of the financial services provider’s stock valued at $20,029,000 after acquiring an additional 484,673 shares in the last quarter. 96.47% of the stock is owned by institutional investors.

About CNO Financial Group

CNO Financial Group, Inc, through its subsidiaries, develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. It operates through Bankers Life, Washington National, Colonial Penn, and Long-Term Care in Run Off segments.

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