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 traded.

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

CNA Financial Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 6th. Shareholders of record on Monday, May 20th will be given a dividend of $0.44 per share. The ex-dividend date of this dividend is Friday, May 17th. This represents a $1.76 annualized dividend and a dividend yield of 3.99%. This is a boost from CNA Financial’s previous quarterly dividend of $0.42. CNA Financial’s dividend payout ratio (DPR) is currently 39.73%.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on CNA. Keefe, Bruyette & Woods lifted their price target on CNA Financial from $48.00 to $50.00 and gave the stock a “market perform” rating in a report on Wednesday, April 10th. Bank of America lowered shares of CNA Financial from a “neutral” rating to an “underperform” rating and lifted their price objective for the stock from $39.00 to $43.00 in a research report on Tuesday, February 6th. Finally, StockNews.com upgraded CNA Financial from a “hold” rating to a “buy” rating in a research note on Wednesday, February 14th.

Hedge Funds Weigh In On CNA Financial

Large investors have recently modified their holdings of the business. Donald Smith & CO. Inc. raised its holdings in CNA Financial by 20.3% during the 4th quarter. Donald Smith & CO. Inc. now owns 1,178,228 shares of the insurance provider’s stock valued at $49,851,000 after acquiring an additional 199,209 shares during the period. New York State Common Retirement Fund lifted its holdings in CNA Financial by 93.6% during the 4th quarter. New York State Common Retirement Fund now owns 306,500 shares of the insurance provider’s stock worth $12,968,000 after purchasing an additional 148,174 shares in the last quarter. Loews Corp boosted its stake in CNA Financial by 1.8% in the 3rd quarter. Loews Corp now owns 248,414,738 shares of the insurance provider’s stock worth $9,775,120,000 after purchasing an additional 4,456,050 shares during the period. Wakefield Asset Management LLLP bought a new stake in shares of CNA Financial during the fourth quarter valued at about $418,000. Finally, Personal CFO Solutions LLC lifted its holdings in shares of CNA Financial by 9.0% in the third quarter. Personal CFO Solutions LLC now owns 180,391 shares of the insurance provider’s stock worth $7,098,000 after buying an additional 14,955 shares in the last quarter. Hedge funds and other institutional investors own 98.45% of the company’s stock.

CNA Financial Price Performance

The firm has a market capitalization of $11.96 billion, a P/E ratio of 9.97, a price-to-earnings-growth ratio of 1.76 and a beta of 0.63. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.26 and a current ratio of 0.26. The business has a 50 day simple moving average of $44.05 and a two-hundred day simple moving average of $42.99.

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.