LNC Should I Buy
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Lincoln National Corp (LNC) is not a strong buy for a beginner, long-term investor at this time. The company's financial performance is weak, with significant YoY declines in revenue, net income, and EPS. Insider selling has increased substantially, and options data shows bearish sentiment with a high put-call volume ratio. While there are some positive catalysts, such as recognition for leadership in hybrid insurance and potential reinsurance transactions to improve cash flow, these are not sufficient to outweigh the negative factors. Analysts' ratings are mixed, with price targets generally below significant upside potential. Therefore, it is better to hold off on investing in LNC until there are clearer signs of financial recovery or stronger bullish signals.
The MACD is positive and expanding, indicating bullish momentum. RSI is neutral at 70.766, and moving averages are converging, showing no clear trend. The stock is trading near resistance levels (R1: 36.118), suggesting limited immediate upside potential.
Recognition for leadership in the hybrid life/long-term care insurance market.
Potential reinsurance transaction to offload $5 billion in life insurance reserves, which could improve cash flow.
Appointment of a new Senior Vice President for Retirement Plan Services, which may strengthen institutional sales.
Significant insider selling, with a 375.63% increase in the last month.
Weak financial performance in Q4 2025, with revenue down 16.29%, net income down 55.67%, and EPS down 60.54% YoY.
Mixed analyst ratings with lowered price targets and concerns about rising competition, investment leverage, and balance sheet complexity.
In Q4 2025, Lincoln National's revenue dropped by 16.29% YoY to $5.318 billion. Net income fell by 55.67% YoY to $743 million, and EPS declined by 60.54% YoY to 3.8. Gross margin remained flat. These metrics indicate significant financial challenges.
Analysts have mixed ratings on LNC. Recent upgrades include Wells Fargo's Overweight rating with a $48 price target, citing positive momentum and improved cash flow. However, other firms like Barclays and TD Cowen have lowered price targets, citing concerns about competition, leverage, and sector headwinds. The average price target is in the $43-$46 range, offering limited upside from the current pre-market price of $36.32.
