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Cannae Holdings, Inc. (NYSE:CNNE) stock has touched a 52-week low, with shares falling to $15.98, reflecting a period of significant pressure for the $1 billion market cap investment company. According to InvestingPro analysis, the stock appears undervalued, with analysts setting price targets between $22 and $29. Over the past year, Cannae's stock has experienced a notable decline, with a 1-year total return of -15.17%. While this downturn highlights market challenges, management has been actively buying back shares, and the stock offers a 2.84% dividend yield. This presents an interesting situation for investors tracking the company's trajectory. InvestingPro subscribers can access 6 additional key ProTips and a comprehensive Research Report, part of the platform's coverage of 1,400+ US stocks.
In other recent news, Cannae Holdings reported a significant miss in its fourth-quarter 2024 earnings, with earnings per share (EPS) at -$0.74, falling short of the forecasted -$0.23. However, the company's revenue slightly exceeded expectations, reaching $110 million. The company has announced plans to allocate at least $460 million from the anticipated sale of Dun & Bradstreet shares for share buybacks and dividends, with $300 million earmarked for repurchasing common stock. This move is part of Cannae's broader strategy to enhance shareholder value and address its share price discount to net asset value. Furthermore, the company has been actively rebalancing its portfolio towards private investments and improving operational performance, having raised approximately $470 million through sales of public company shares over the past year. Cannae's recent acquisitions include a 20% stake in JANA Partners and a 53% stake in the Watkins Company, which are expected to provide new opportunities and cash flows. Despite the earnings miss, the company continues to focus on strategic initiatives, including ongoing discussions with JANA Partners and potential developments for AFC Bournemouth's stadium. These developments are part of Cannae's efforts to drive long-term value and optimize its investment portfolio.
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