What Happened?
Shares of insurance and retirement company Lincoln National (NYSE: LNC) fell 3.2% in the morning session after Wolfe Research initiated coverage on the stock with an "Underperform" rating. The research firm, led by analyst Tracy Benguigui, set a price target of $37.00 for the financial services company. An "Underperform" rating suggests that the analyst expects the stock to perform worse than the broader market or its industry peers in the near future. This new bearish outlook from a notable research firm likely prompted investors to sell their shares, putting downward pressure on the stock price.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Lincoln Financial Group? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Lincoln Financial Group’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 25 days ago when the stock gained 3.2% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium.
Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Lincoln Financial Group is up 24.4% since the beginning of the year, and at $39.62 per share, it is trading close to its 52-week high of $43.29 from September 2025. Investors who bought $1,000 worth of Lincoln Financial Group’s shares 5 years ago would now be looking at an investment worth $1,150.
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