CNNE Should I Buy
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Cannae Holdings Inc (CNNE) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock shows weak financial performance, bearish technical indicators, and lacks significant positive catalysts. While the company has increased its dividend and repurchased shares, these actions are overshadowed by poor earnings results and declining revenue. For a long-term investor, it would be prudent to monitor the stock for improvements in financial performance and technical indicators before considering a buy.
The technical indicators are bearish. The MACD is below 0 and negatively contracting, the RSI is neutral at 38.783, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). Key support and resistance levels suggest the stock is closer to its support at 11.675 than its pivot at 12.718, indicating potential downside risk.
The company repurchased $323 million in stock and increased its quarterly dividend by 25% to $0.15 per share, signaling shareholder-friendly actions.
The company reported a Q4 GAAP EPS of -$1.93, missing expectations by $1.55, and revenue declined 6% year-over-year. Gross margin also dropped by 7.4% YoY. Analysts have lowered price targets, and there are no significant insider or hedge fund trading trends to indicate confidence in the stock.
In Q4 2025, revenue dropped by 6.01% YoY to $103.3 million, net income increased to -$93 million (up 101.74% YoY), and EPS improved to -$1.93 (up 160.81% YoY). Despite some improvement in net income and EPS, the company remains unprofitable, and gross margin declined to 12.39%, down 7.4% YoY.
RBC Capital lowered the price target from $19 to $16 while maintaining an Outperform rating. Analysts note the company's shift towards sports/entertainment assets but highlight reduced potential for share repurchases as a near-term catalyst.
