The Case for and Against CNO Financial Group, Inc. (CNO)

CNO Financial Group, Inc. (NYSE:CNO) is an interesting player in the Financial space, with a focus on Accident & Health Insurance. The stock has been active on the tape, currently trading at $19.25, up from yesterday’s close by 0.57%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. CNO Financial Group, Inc. (CNO) currently trades with a market capitalization of $3.34B. That value represents a market adjusting for revenues that have been growing by 12.30% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For CNO, the company currently has $1.01B of cash on the books, which is offset by $4.25B current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $2.11B over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of 0.39 on a per share basis this quarter. Perhaps, that suggests something about why 105.80% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how has been acting. Looking at the stock’s movement on the chart, CNO Financial Group, Inc. recorded a 52-week high of 20.55. It is now trading 1.41 off that level. The stock is trading 18.94 its 50-day moving average by -0.2. The stock carved out a 52-week low down at 14.30.

In recent action, CNO Financial Group, Inc. (CNO) has made a move of +0.52% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 4.01, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 171.38M with 1.26% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CNO.

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