Douglas Worman, Executive Vice President and Head of Underwriting at CNA Financial Corp (NYSE:CNA), recently sold 22,973 shares of the company's common stock. The shares were sold on November 7th at a weighted average price of $48.75, totaling approximately $1.12 million. After the transaction, Worman retains direct ownership of 133,777 shares in the company. According to the filing, the sale was executed in multiple trades at prices ranging from $48.71 to $48.87.
In other recent news, CNA Financial has been the focus of attention following its third-quarter 2024 results. Renowned analyst firm, Keefe, Bruyette & Woods, has adjusted their price target for CNA Financial to $55.00 from the previous $54.00, while maintaining a Market Perform rating. The firm has also revised its earnings per share (EPS) estimates for the company for the years 2024, 2025, and 2026, with the new figures set at $4.65, $5.55, and $5.90 respectively. These changes primarily reflect CNA Financial's third-quarter performance, which fell short of the analyst's expectations. The higher EPS estimates for 2025 and 2026 are based on anticipated increased investment income and reduced expense ratios, counterbalanced by expectations of higher core loss ratios and a decrease in Life & Group income. CNA Financial's current valuation, trading at 8.8 times the firm's projected 2025 EPS, was also a point of discussion by the analyst. These are among the recent developments concerning CNA Financial.
InvestingPro Insights
To provide additional context to Douglas Worman's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for CNA Financial Corp (NYSE:CNA).
CNA Financial's current market capitalization stands at $13.11 billion, reflecting its significant presence in the insurance industry. The company's P/E ratio of 10.06 suggests that it may be undervalued compared to its peers, which aligns with an InvestingPro Tip indicating that CNA is trading at a low P/E ratio relative to its near-term earnings growth.
Notably, CNA boasts a substantial dividend yield of 7.77%, underscoring its commitment to shareholder returns. This is further supported by an InvestingPro Tip highlighting that CNA pays a significant dividend to shareholders and has maintained dividend payments for 14 consecutive years. This consistent dividend policy may provide some reassurance to investors in light of the insider sale.
The company's revenue growth of 9.18% over the last twelve months demonstrates its ability to expand its business in a competitive market. Additionally, CNA's profitability is confirmed by an InvestingPro Tip stating that the company has been profitable over the last twelve months, with analysts predicting continued profitability this year.
It's worth noting that InvestingPro offers 7 additional tips for CNA Financial, providing a more comprehensive analysis for investors seeking deeper insights into the company's financial health and market position.
While Worman's stock sale might raise questions, these financial indicators suggest that CNA Financial maintains a strong market position with attractive shareholder returns, which could help contextualize the insider transaction within the broader picture of the company's performance.
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