Eric R. Johnson, the Chief Investment Officer of CNO Financial Group Inc . (NYSE:CNO), recently reported a significant stock sale. On November 12, Johnson sold 30,704 shares of common stock, generating approximately $1.22 million. The sale price ranged from $39.76 to $39.91 per share, with a weighted average price of $39.7737.
In a related transaction on the same day, Johnson exercised options to acquire 51,290 shares at $16.42 each. Following these transactions, Johnson's direct ownership in CNO Financial stands at 635,822 shares.
The stock sale was part of a series of transactions reported in a Form 4 filing with the Securities and Exchange Commission.
"In other recent news, CNO Financial Group has demonstrated a robust financial performance in the third quarter of 2024. The company reported significant year-over-year earnings growth, with operating earnings per diluted share increasing by 26% to $1.11. This marks the company's ninth consecutive quarter of sales growth. The total new annualized premium (NAP) across the enterprise saw a 1% increase, with a notable 7% rise when excluding direct-to-consumer sales.
RBC (TSX:RY) Capital Markets recently adjusted its outlook on CNO Financial, increasing the price target to $40 and maintaining an Outperform rating. The firm recognized CNO Financial's strong quarter, particularly the Health segment, and the company's net investment income. CNO Financial's revised full-year 2024 earnings per share (EPS) guidance upwards also caught the attention of analysts, attributed to the profitability of its core segments and ongoing efforts to trim expenses.
In light of these recent developments, CNO Financial has revised its full-year earnings and cash flow guidance upwards. The company also reported a 6% increase in book value per diluted share to $35.84 and returned $107 million to shareholders. Despite some challenges in fixed indexed annuity margins, the company recorded a record growth in annuity collected premiums and strong demand for long-term care and Medicare Supplement products."
InvestingPro Insights
Following Eric R. Johnson's recent stock sale, it's worth examining CNO Financial Group's current market position and performance. According to InvestingPro data, CNO's market capitalization stands at $4.06 billion, with a price-to-earnings ratio of 15.61, suggesting a relatively moderate valuation compared to its earnings.
The company's financial health appears robust, with revenue growth of 14.5% over the last twelve months and a strong quarterly revenue growth of 19.22% as of Q3 2024. This growth trajectory aligns with an InvestingPro Tip indicating that CNO has maintained dividend payments for 13 consecutive years and has even raised its dividend for 12 consecutive years, demonstrating a commitment to shareholder returns.
Another relevant InvestingPro Tip highlights that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. This buyback activity, coupled with Johnson's recent options exercise, may signal management's positive outlook on CNO's valuation.
It's noteworthy that CNO's stock has shown impressive performance, with a one-year price total return of 66.86% and is currently trading near its 52-week high. This strong market performance could explain the timing of Johnson's stock sale, potentially capitalizing on the high stock price.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on CNO Financial Group, providing a deeper insight into the company's financial health and market position.
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