CNA Financial (NYSE:CNA) Shares Gap Down on Disappointing Earnings

CNA Financial Co. (NYSE:CNA)’s share price gapped down prior to trading on Monday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $44.40, but opened at $42.93. CNA Financial shares last traded at $44.20, with a volume of 68,170 shares trading hands.

The insurance provider reported $1.30 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.37 by ($0.07). The firm had revenue of $3.44 billion for the quarter, compared to analyst estimates of $2.94 billion. CNA Financial had a return on equity of 14.33% and a net margin of 9.06%. During the same quarter last year, the firm earned $1.19 earnings per share.

CNA Financial Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 6th. Shareholders of record on Monday, May 20th will be paid a $0.44 dividend. This is an increase from CNA Financial’s previous quarterly dividend of $0.42. This represents a $1.76 dividend on an annualized basis and a yield of 3.96%. The ex-dividend date of this dividend is Friday, May 17th. CNA Financial’s payout ratio is presently 39.73%.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. StockNews.com upgraded shares of CNA Financial from a “hold” rating to a “buy” rating in a research report on Wednesday, February 14th. Bank of America downgraded shares of CNA Financial from a “neutral” rating to an “underperform” rating and boosted their target price for the stock from $39.00 to $43.00 in a report on Tuesday, February 6th. Finally, Keefe, Bruyette & Woods increased their target price on CNA Financial from $48.00 to $50.00 and gave the stock a “market perform” rating in a report on Wednesday, April 10th.

Hedge Funds Weigh In On CNA Financial

Several hedge funds have recently made changes to their positions in CNA. Russell Investments Group Ltd. increased its holdings in CNA Financial by 9.5% during the 1st quarter. Russell Investments Group Ltd. now owns 58,958 shares of the insurance provider’s stock valued at $2,678,000 after purchasing an additional 5,130 shares during the period. Janney Montgomery Scott LLC purchased a new position in CNA Financial in the 1st quarter worth about $231,000. Commonwealth Equity Services LLC grew its stake in shares of CNA Financial by 4.7% during the 1st quarter. Commonwealth Equity Services LLC now owns 52,935 shares of the insurance provider’s stock valued at $2,404,000 after purchasing an additional 2,357 shares during the period. SlateStone Wealth LLC grew its holdings in CNA Financial by 6.8% during the first quarter. SlateStone Wealth LLC now owns 16,964 shares of the insurance provider’s stock valued at $771,000 after purchasing an additional 1,081 shares during the period. Finally, Wealthstar Advisors LLC raised its stake in CNA Financial by 11.6% during the 1st quarter. Wealthstar Advisors LLC now owns 8,091 shares of the insurance provider’s stock worth $367,000 after acquiring an additional 842 shares during the period. 98.45% of the stock is currently owned by hedge funds and other institutional investors.

CNA Financial Price Performance

The company has a debt-to-equity ratio of 0.25, a current ratio of 0.26 and a quick ratio of 0.26. The firm has a 50-day moving average of $44.05 and a 200-day moving average of $42.99. The stock has a market cap of $12.03 billion, a PE ratio of 9.97, a PEG ratio of 1.76 and a beta of 0.63.

About CNA Financial

CNA Financial Corporation provides commercial property and casualty insurance products in the United States and internationally. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity and cyber coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products.