Home Sectors Financial Services Present Movement: Lincoln National Corporation (NYSE: LNC)

Present Movement: Lincoln National Corporation (NYSE: LNC)

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Lincoln National Corporation is part of the life insurance industry and is in the financial services sector. The company CEO is Dennis R. Glass. Lincoln National Corp offers individual and group insurance, retirement, and investment products in the United States and the United Kingdom. It distributes its products through independent and company-employed agents, and banking.

Previous Intraday Trading Performance:

The LNC stock showed a previous change of -1.52% with an open at 58.31 and a close of 58.32. It reached an intraday high of 59.00 and a low of 57.19.

Business Wire:  Love and Money: Roses Are Red, Violets Are Blue…Give Your Sweetheart a Strong Financial Plan to Say “I Love You”

Liquidity:

The stock has a market cap of $12.0b with 205.9m shares outstanding, of which the float is 202.8m shares. Trading volume reached 2,118,398 shares compared to its average volume of 2,187,842 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Lincoln National Corporation shares returned -1.04% and in the past 30 trading days it returned 14.70%. Over three months, it changed 1.69%. In one year it has changed -30.47% and within that year its 52-week high was 79.83 and its 52-week low was 48.07. LNC stock is 21.32% above its 52 Week Low.

Our calculations show a 200 day moving average of 63.08 and a 50 day moving average of 56.17. Currently LNC stock is trading -7.54% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Lincoln National Corporation 2018 Q4 – Results – Earnings Call Slides

Earnings:

The last annual fiscal EPS for the company was reported at 9.21 that ended on 31st of December 2018, which according to the previous close, that is a PE of 6.33. Based on 7 analyst estimates, the consensus EPS for the next quarter is 2.13. The TTM EPS is 8.48, which comes to a TTM PE of 6.88. Historically, the PE high was 15.60 and the PE low was 5.50. If the stock reached its PE low, that would represent a price of 46.62, which is a decrease of -20.06%.

The following are the last four quarter reported earnings per share:
12-31-2018:  2.15
09-30-2018:  2.34
06-30-2018:  2.02
03-31-2018:  1.97

The dividend per share is currently 1.48, which is a dividend yield of 2.54%. Also, the payout ratio is 17.45%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 110.49, which means it is possibly undervalued and has a margin of safety of 47.22%

Indicators to Watch:

Based on the latest filings, there is 1.40% of insider ownership and 123.60% of institutional ownership. Short-interest is 3,482,036, which is 1.69% of shares outstanding. The short-interest ratio or days-to-cover ratio is 1.26. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.93

SeekingAlpha:  Lincoln National Corp. (LNC) CEO Dennis Glass on Q4 2018 Results – Earnings Call Transcript

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 10.25%, return on assets is 0.56%, profit margin is 9.99%, price-to-sales is 0.74 and price-to-book is 0.84.

Company Scores:

All scores are out of six:
 6  :Valuation Score
 2  :Past Performance Score
 3  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.