Cannae (NYSE:CNNE) Shares Down 8.4% on Disappointing Earnings

Shares of Cannae Holdings, Inc. (NYSE:CNNE) were down 8.4% on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $11.53 and last traded at $11.6050. Approximately 92,091 shares changed hands during trading, a decline of 79% from the average daily volume of 448,735 shares. The stock had previously closed at $12.67.

The company reported ($1.93) earnings per share for the quarter, missing the consensus estimate of ($0.38) by ($1.55). Cannae had a negative return on equity of 23.16% and a negative net margin of 108.39%.The business had revenue of $103.30 million during the quarter, compared to analysts’ expectations of $102.70 million. During the same period in the prior year, the firm posted ($0.74) EPS. The firm’s revenue for the quarter was down 6.0% on a year-over-year basis.

Cannae Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 5.1%. The ex-dividend date is Tuesday, March 17th. Cannae’s dividend payout ratio (DPR) is currently -7.76%.

Cannae News Summary

Here are the key news stories impacting Cannae this week:

• Positive Sentiment: Company declared a quarterly dividend of $0.15/share (annualized ~4.7% yield), payable March 31 with record/ex-div dates in March — a near-term cash return that can attract income-focused investors.
• Positive Sentiment: Management signaled capital-return initiatives (buybacks) and emphasized reallocating the portfolio toward sports & entertainment assets during the Q4 call — a move that could boost growth if execution succeeds. Read More.
• Neutral Sentiment: Management described an “accelerated portfolio transformation” and plans tied to expanding stadium/event capacity (cited target ~80%) as it prioritizes sports & entertainment — strategic shift that could change revenue mix but adds execution risk. Read More.
• Neutral Sentiment: Full Q4 earnings materials and the call transcript were posted; investors can review details for segment-level performance and management commentary. Read More. • Read More.
• Negative Sentiment: Large Q4 earnings miss: GAAP EPS of ($1.93) vs. consensus (~($0.38)), a year-over-year EPS decline and a 6% drop in revenue. The company also reported a negative net margin (~-108%) and negative ROE, which heightens near-term investor concern and likely triggered the share decline. Read More.
• Negative Sentiment: Execution risk: the strategic pivot, potential asset sales/allocations to sports & entertainment and the large EPS swing create uncertainty on timing of any recovery — investors may remain cautious until cash generation and margins improve.

Analysts Set New Price Targets

CNNE has been the topic of a number of analyst reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Cannae in a research note on Friday, January 9th. Royal Bank Of Canada decreased their target price on shares of Cannae from $19.00 to $16.00 and set an “outperform” rating on the stock in a report on Tuesday. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $19.00.

Institutional Investors Weigh In On Cannae

Large investors have recently added to or reduced their stakes in the company. Quantbot Technologies LP purchased a new stake in Cannae in the second quarter worth approximately $62,000. CWM LLC lifted its holdings in shares of Cannae by 40.4% in the 2nd quarter. CWM LLC now owns 3,253 shares of the company’s stock worth $68,000 after acquiring an additional 936 shares during the last quarter. Kelleher Financial Advisors purchased a new stake in Cannae during the third quarter valued at about $73,000. Nomura Asset Management Co. Ltd. boosted its position in Cannae by 66.8% during the second quarter. Nomura Asset Management Co. Ltd. now owns 4,168 shares of the company’s stock valued at $87,000 after buying an additional 1,669 shares during the period. Finally, Eurizon Capital SGR S.p.A. bought a new position in shares of Cannae during the fourth quarter valued at about $85,000. Hedge funds and other institutional investors own 88.12% of the company’s stock.

Cannae Stock Performance

The company has a quick ratio of 2.03, a current ratio of 2.03 and a debt-to-equity ratio of 0.05. The company has a fifty day moving average price of $14.99 and a 200 day moving average price of $16.81. The stock has a market cap of $576.77 million, a PE ratio of -1.51 and a beta of 1.09.

About Cannae

Cannae Holdings, Inc (NYSE: CNNE) is a publicly traded diversified holding company that focuses on partnering with and investing in businesses across a range of industry sectors. The company seeks to identify attractive opportunities in both private and public markets, leveraging its capital resources and management expertise to support operational growth and value creation. Cannae’s investment strategy emphasizes companies in data and analytics, marketing services, healthcare technology, and payment processing.

Through its portfolio, Cannae holds controlling or significant minority stakes in companies that provide critical software, data and services to corporate clients.