Cna Financial (NYSE:CNA) Downgraded to “Sell” at Zacks Investment Research

Cna Financial (NYSE:CNA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday, Zacks.com reports. They presently have a $49.00 price objective on the insurance provider’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 4.08% from the company’s current price.

According to Zacks, “CNA Financial’s second-quarter EPS beat estimates on better underwriting, better pricing, good investment performance and stable run-off long-term care business. It is one of the versatile P&C insurers and has been maintaining a good track record of its combined ratio over the past few years, thus leading to underwriting profitability. Maintaining a robust capital and liquidity shields it from market volatility and enables it to retain the financial strength and flexibility needed to pursue new opportunities, consistent with its long-term strategy. It deploys capital effectively to bshareholders value. Shares of CNA Financial have outperformed the industry year to date. However, exposure to cat loss poses an inherent risk to the P&C business, rendering volatility to earnings. Also, rising expenses might weigh on margin expansion.”

Cna Financial stock traded up $0.77 during trading hours on Tuesday, hitting $47.08. The stock had a trading volume of 59,468 shares, compared to its average volume of 128,805. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.24 and a quick ratio of 0.24. The company has a market cap of $12.78 billion, a PE ratio of 15.19, a P/E/G ratio of 2.30 and a beta of 0.83. Cna Financial has a 12-month low of $41.49 and a 12-month high of $48.87. The stock has a 50-day simple moving average of $47.69.

Cna Financial (NYSE:CNA) last issued its earnings results on Monday, August 5th. The insurance provider reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.06. Cna Financial had a net margin of 8.39% and a return on equity of 7.74%. The business had revenue of $2.34 billion during the quarter, compared to analysts’ expectations of $2.35 billion. During the same period in the previous year, the company earned $0.99 earnings per share. As a group, equities analysts forecast that Cna Financial will post 4.1 earnings per share for the current fiscal year.

In related news, CEO Dino Robusto sold 1,094 shares of the business’s stock in a transaction dated Thursday, May 9th. The shares were sold at an average price of $45.65, for a total value of $49,941.10. Following the sale, the chief executive officer now directly owns 302,384 shares in the company, valued at approximately $13,803,829.60. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.23% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently modified their holdings of the stock. LSV Asset Management raised its position in shares of Cna Financial by 19.9% during the 1st quarter. LSV Asset Management now owns 1,877,079 shares of the insurance provider’s stock valued at $81,371,000 after buying an additional 311,300 shares in the last quarter. First Trust Advisors LP grew its position in Cna Financial by 20.6% in the 1st quarter. First Trust Advisors LP now owns 856,594 shares of the insurance provider’s stock worth $37,133,000 after purchasing an additional 146,529 shares in the last quarter. River Road Asset Management LLC grew its position in Cna Financial by 17.8% in the 1st quarter. River Road Asset Management LLC now owns 749,838 shares of the insurance provider’s stock worth $32,505,000 after purchasing an additional 113,106 shares in the last quarter. Hamlin Capital Management LLC bought a new stake in Cna Financial in the 2nd quarter worth about $27,020,000. Finally, Norges Bank bought a new stake in Cna Financial in the 4th quarter worth about $19,891,000. Hedge funds and other institutional investors own 99.23% of the company’s stock.

About Cna Financial

CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It 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 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 standard property and casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products.

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