Cannae (NYSE:CNNE) Shares Gap Down on Disappointing Earnings

Cannae Holdings, Inc. (NYSE:CNNE) shares gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $18.80, but opened at $18.20. Cannae shares last traded at $18.09, with a volume of 50,488 shares.

The company reported ($0.59) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.56) by ($0.03). Cannae had a negative net margin of 68.61% and a negative return on equity of 8.26%. The business had revenue of $103.20 million during the quarter, compared to analyst estimates of $105.30 million. During the same quarter last year, the firm earned ($1.27) earnings per share. Cannae’s revenue was down 6.8% compared to the same quarter last year.

Cannae Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 30th. Shareholders of record on Monday, June 16th will be given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 2.69%. The ex-dividend date of this dividend is Monday, June 16th. Cannae’s payout ratio is -9.13%.

Cannae announced that its board has initiated a stock repurchase program on Tuesday, March 25th that authorizes the company to buyback 10,000,000 shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board believes its stock is undervalued.

Analyst Ratings Changes

A number of brokerages have issued reports on CNNE. Oppenheimer decreased their target price on Cannae from $27.00 to $22.00 and set an “outperform” rating for the company in a research report on Friday, March 7th. Royal Bank of Canada decreased their price objective on shares of Cannae from $27.00 to $23.00 and set an “outperform” rating for the company in a report on Wednesday, February 26th.

Hedge Funds Weigh In On Cannae

Institutional investors have recently made changes to their positions in the business. Continental Advisors LLC grew its holdings in Cannae by 0.3% in the 4th quarter. Continental Advisors LLC now owns 239,623 shares of the company’s stock valued at $4,759,000 after buying an additional 624 shares during the last quarter. Park Avenue Securities LLC lifted its holdings in shares of Cannae by 6.3% during the first quarter. Park Avenue Securities LLC now owns 13,089 shares of the company’s stock worth $240,000 after buying an additional 777 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Cannae by 3.7% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,060 shares of the company’s stock valued at $637,000 after acquiring an additional 1,151 shares during the period. Global Retirement Partners LLC grew its stake in shares of Cannae by 29.6% in the fourth quarter. Global Retirement Partners LLC now owns 5,251 shares of the company’s stock worth $104,000 after acquiring an additional 1,198 shares during the last quarter. Finally, Crescent Grove Advisors LLC grew its stake in shares of Cannae by 0.4% in the first quarter. Crescent Grove Advisors LLC now owns 325,479 shares of the company’s stock worth $5,966,000 after acquiring an additional 1,259 shares during the last quarter. 88.12% of the stock is currently owned by institutional investors.

Cannae Price Performance

The firm has a market cap of $1.12 billion, a P/E ratio of -3.71 and a beta of 1.03. The stock’s 50-day moving average is $17.58 and its 200-day moving average is $19.14. The company has a quick ratio of 2.55, a current ratio of 2.55 and a debt-to-equity ratio of 0.10.

About Cannae

Cannae Holdings, Inc is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc was founded in 2014 and is based in Las Vegas, Nevada.