Its Stock Has Paid Off Big Time For Lincoln National Corporation

Lincoln National Corporation (NYSE: LNC) stock fell -9.17% on Friday to $47.04 against a previous-day closing price of $51.79. With 4.06 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.66 million shares. During the session, the Insurance – Life company that operates in wider Financial sector, reached to the highest price of $52.53 whereas the lowest price it dropped to was $46.77. The 52-week range on LNC shows that it touched its highest point at $77.57 and its lowest point at $44.89 during that stretch. It currently has a 1-year price target of $60.79. With its current market cap of 7.93 billion, LNC has annualized dividend of $1.80 while the current yield stands at 3.83%. Beta for the stock currently stands at 1.88.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LNC was down-trending over the past week, with a drop of -6.70%, but this was up by 0.56% over a month. Three-month performance dropped to -27.71% while six-month performance fell -34.45%. The stock lost -22.96% in the past year, while it has lost -31.09% so far this year. A look at the trailing 12-month EPS for LNC yields 7.14 with Next year EPS estimates of 11.59. For the next quarter, that number is 2.21. This implies an EPS growth rate of 230.00% for this year and 35.75% for next year. EPS is expected to grow by 18.51% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 9.30%.

Float and Shares Shorts:

At present, 173.33 million LNC shares are outstanding with a float of 155.95 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.21 million, which was 3.03% higher than short shares on Jun 14, 2022. In addition to Ms. Ellen Gail Cooper C.F.A., F.S.A. as the firm’s Pres, CEO & Director, Mr. Randal Jay Freitag FSA serves as its Exec. VP, CFO & Head of Individual Life.

Institutional Ownership:

Through their ownership of 77.21% of LNC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.50% of LNC, in contrast to 32.60% held by mutual funds. Shares owned by individuals account for 3.00%. As the largest shareholder in LNC with 10.88% of the stake, The Vanguard Group, Inc. holds 18,698,634 shares worth 18,698,634. A second-largest stockholder of LNC, BlackRock Fund Advisors, holds 8,697,444 shares, controlling over 5.06% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in LNC, holding 8,425,301 shares or 4.90% stake. With a 2.66% stake in LNC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,574,648 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.08% of LNC stock, is the second-largest Mutual Fund holder. It holds 3,574,292 shares valued at 167.17 million. Fidelity Low Priced Stock Fund holds 2.02% of the stake in LNC, owning 3,480,383 shares worth 162.78 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LNC since 16 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LNC analysts setting a high price target of $78.00 and a low target of $45.00, the average target price over the next 12 months is $60.27. Based on these targets, LNC could surge 65.82% to reach the target high and fall by -4.34% to reach the target low. Reaching the average price target will result in a growth of 28.13% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. LNC will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $9.50 being high and $6.34 being low. For LNC, this leads to a yearly average estimate of $8.51. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Lincoln National Corporation reported $2.23 EPS against a consensus estimate of $2.23. The surprise factor in the prior quarter was -$0.16. Based on analyst estimates, the high estimate for the next quarter is $2.80 and the low estimate is $1.55. The average estimate for the next quarter is thus $2.27.

Summary of Insider Activity:

Insiders traded LNC stock several times over the past three months with 1 Buys and 2 Sells. In these transactions, 7,480 shares were bought while 50,862 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 28 over the past year. The total number of shares bought during that period was 396,490 while 527,286 shares were sold.

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