Zacks Investment Research Downgrades Lincoln National Corp. (LNC) to Sell
Lincoln National Corp. (NYSE:LNC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.
According to Zacks, “Lincoln National Corporation’s growth has been restricted by economic volatility, softness in Group Protection segment, intense competition and a low interest rate environment, which has weakened net flows, annuities and investment yields. The company reported negative earning surprise in three of the last four quarters with an average miss of 10.8%. The Zacks Consensus Estimate for 2016 and 2017 has been revised downward by 1% and 2.6% respectively over last 90 days. However, Lincoln National is well positioned for long-term growth, given its focus on reducing exposure to business with long-term guarantee. The company also remains immune to the DOL proposed rule. Strong capital position is another positive. Moreover, the company’s balance sheet remained strong with prudent capital deployment and improvement in book value.”
Several other equities research analysts have also issued reports on the company. Wells Fargo & Co. began coverage on Lincoln National Corp. in a research note on Friday, September 23rd. They set a “market perform” rating for the company. Goldman Sachs Group Inc. lowered Lincoln National Corp. from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $51.00 to $46.00 in a research note on Friday, July 15th. Deutsche Bank AG dropped their price target on Lincoln National Corp. from $57.00 to $53.00 and set a “hold” rating for the company in a research note on Thursday, July 7th. Citigroup Inc. dropped their price target on Lincoln National Corp. from $46.00 to $44.00 and set a “neutral” rating for the company in a research note on Thursday, July 7th. Finally, Evercore ISI began coverage on Lincoln National Corp. in a research note on Wednesday, July 6th. They set a “buy” rating and a $47.00 price target for the company. Two analysts have rated the stock with a sell rating, nine have given a hold rating, five have given a buy rating and one has given a strong buy rating to the stock. The company has a consensus rating of “Hold” and an average target price of $53.00.
Lincoln National Corp. (NYSE:LNC) traded up 1.17% during trading on Tuesday, reaching $47.70. The company’s stock had a trading volume of 1,187,304 shares. The company has a market cap of $11.10 billion, a PE ratio of 11.43 and a beta of 2.04. Lincoln National Corp. has a 52-week low of $30.39 and a 52-week high of $57.54. The stock has a 50-day moving average price of $46.67 and a 200 day moving average price of $43.41.
Lincoln National Corp. (NYSE:LNC) last issued its quarterly earnings results on Wednesday, August 3rd. The company reported $1.56 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $1.58 by $0.02. Lincoln National Corp. had a return on equity of 9.27% and a net margin of 7.71%. The firm had revenue of $3.40 billion for the quarter, compared to the consensus estimate of $3.45 billion. During the same period last year, the firm earned $1.46 EPS. The company’s revenue for the quarter was down .6% on a year-over-year basis. On average, analysts expect that Lincoln National Corp. will post $6.07 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 1st. Shareholders of record on Monday, October 10th will be issued a dividend of $0.25 per share. The ex-dividend date is Wednesday, October 5th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.12%. Lincoln National Corp.’s dividend payout ratio (DPR) is 23.92%.
In related news, Director Patrick S. Pittard sold 10,382 shares of the company’s stock in a transaction that occurred on Monday, September 12th. The stock was sold at an average price of $46.67, for a total value of $484,527.94. Following the sale, the director now owns 13,115 shares in the company, valued at approximately $612,077.05. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Lisa Buckingham sold 12,881 shares of the company’s stock in a transaction that occurred on Wednesday, August 31st. The stock was sold at an average price of $48.26, for a total value of $621,637.06. The disclosure for this sale can be found here. Company insiders own 1.41% of the company’s stock.
Several hedge funds have recently bought and sold shares of LNC. Capital Analysts LLC increased its stake in Lincoln National Corp. by 54.4% in the second quarter. Capital Analysts LLC now owns 1,685 shares of the company’s stock valued at $106,000 after buying an additional 594 shares during the last quarter. Barnett & Company Inc. bought a new stake in Lincoln National Corp. during the first quarter valued at $104,000. North Star Investment Management Corp. bought a new stake in Lincoln National Corp. during the second quarter valued at $127,000. Societe Generale bought a new stake in Lincoln National Corp. during the second quarter valued at $132,000. Finally, Quadrant Capital Group LLC increased its stake in Lincoln National Corp. by 0.7% in the second quarter. Quadrant Capital Group LLC now owns 3,896 shares of the company’s stock valued at $146,000 after buying an additional 26 shares during the last quarter. Institutional investors own 78.68% of the company’s stock.
Lincoln National Corp. Company Profile
Lincoln National Corporation is a holding company, which operates insurance and retirement businesses through subsidiary companies. The Company sells a range of wealth protection, accumulation and retirement income products and solutions, through its business segments. It operates through four segments: Annuities segment, which offers fixed (including indexed) and variable annuities; Retirement Plan Services segment, which provides employers with retirement plan products and services; Life Insurance segment, which focuses in the creation and protection of wealth through life insurance products, and Group Protection, which offers principally group non-medical insurance products.
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