Zacks Investment Research upgraded shares of Cincinnati Financial (NASDAQ:CINF) from a sell rating to a hold rating in a research note issued to investors on Tuesday morning.
According to Zacks, “Shares of Cincinnati Financial have outperformed the industry in a year. Cincinnati Financial’s low leverage, ample capital, consistent cash flow generation, favorable reserve release, share repurchases and consistent dividend hikes should drive growth. Management is appointing agencies and expanding product offerings to ramp up the business profile. Also, with the gradual improvement in interest rates, net investment income growth is expected in the near term. It has replaced its existing catastrophe bond program with a new collateralized reinsurance to mitigate the loss. However, Exposure to cat loss and a continued turmoil in group benefits associated with the ACA are headwinds. Also, there was no earnings momentum witnessed over the last 60 days.”
Separately, BidaskClub upgraded shares of Cincinnati Financial from a hold rating to a buy rating in a research note on Thursday, April 26th. One analyst has rated the stock with a sell rating and four have given a hold rating to the company. The stock currently has an average rating of Hold and a consensus price target of $76.00.
Cincinnati Financial opened at $67.36 on Tuesday, Marketbeat.com reports. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.27 and a current ratio of 0.27. Cincinnati Financial has a 12 month low of $66.33 and a 12 month high of $81.98. The stock has a market capitalization of $10.99 billion, a price-to-earnings ratio of 24.58 and a beta of 0.85.
Cincinnati Financial (NASDAQ:CINF) last released its earnings results on Wednesday, April 25th. The insurance provider reported $0.72 EPS for the quarter, missing the consensus estimate of $0.80 by ($0.08). Cincinnati Financial had a net margin of 14.96% and a return on equity of 6.14%. The firm had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.44 billion. During the same period in the prior year, the business earned $0.59 earnings per share. Cincinnati Financial’s quarterly revenue was down 19.6% compared to the same quarter last year. equities research analysts forecast that Cincinnati Financial will post 2.95 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, July 16th. Stockholders of record on Wednesday, June 20th will be paid a $0.53 dividend. The ex-dividend date of this dividend is Tuesday, June 19th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 3.15%. Cincinnati Financial’s payout ratio is currently 77.37%.
In related news, Director David P. Osborn purchased 370 shares of Cincinnati Financial stock in a transaction dated Monday, May 7th. The shares were bought at an average cost of $70.16 per share, for a total transaction of $25,959.20. Following the purchase, the director now owns 23,591 shares in the company, valued at approximately $1,655,144.56. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 7.07% of the company’s stock.
Several institutional investors and hedge funds have recently bought and sold shares of the company. Avestar Capital LLC acquired a new stake in Cincinnati Financial during the 4th quarter worth approximately $103,000. Fiera Capital Corp acquired a new stake in Cincinnati Financial during the 1st quarter worth approximately $200,000. GWM Advisors LLC acquired a new stake in Cincinnati Financial during the 1st quarter worth approximately $217,000. First Commonwealth Financial Corp PA acquired a new stake in Cincinnati Financial during the 1st quarter worth approximately $223,000. Finally, Virtu Financial LLC acquired a new stake in Cincinnati Financial during the 4th quarter worth approximately $235,000. Institutional investors own 63.20% of the company’s stock.
About Cincinnati Financial
Cincinnati Financial Corporation provides property casualty insurance products in the United States. The company operates in five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The Commercial Lines Insurance segment provides coverage for commercial casualty, commercial property, commercial auto, and workers' compensation.
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