Zacks Investment Research upgraded shares of Cincinnati Financial (NASDAQ:CINF) from a hold rating to a buy rating in a report published on Monday morning. Zacks Investment Research currently has $82.00 price objective on the insurance provider’s stock.
According to Zacks, “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. It continues to see net investment income growth. The company saw its 2018 estimate moving north in the last 60 days. However, exposure to cat losses and a continued turmoil in group benefits associated with the ACA are headwinds. The company has projected losses of not less than $1 million each in the fourth quarter from Hurricane Nate and Califirnia Wildfire. The insurer has replaced its existing catastrophe bond program with a new collateralized reinsurance to mitigate the loss. Shares of Cincinnati Financial have underperformed the industry in a year. A Zacks Rank #2 and Earnings ESP of 2.92% makes us confident of a fourth quarter earnings beat on Feb 14.”
Separately, BidaskClub lowered Cincinnati Financial from a sell rating to a strong sell rating in a research note on Thursday, December 14th. One analyst has rated the stock with a sell rating, four have issued a hold rating and one has given a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average target price of $78.50.
Shares of Cincinnati Financial (NASDAQ:CINF) traded down $0.20 during mid-day trading on Monday, hitting $74.86. The stock had a trading volume of 401,800 shares, compared to its average volume of 530,900. Cincinnati Financial has a twelve month low of $68.24 and a twelve month high of $81.98. The stock has a market capitalization of $12,320.00, a PE ratio of 24.71 and a beta of 0.93. The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 0.11.
Cincinnati Financial (NASDAQ:CINF) last announced its quarterly earnings results on Thursday, October 26th. The insurance provider reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.53 by $0.05. Cincinnati Financial had a return on equity of 5.85% and a net margin of 8.93%. The business had revenue of $1.41 billion during the quarter, compared to analysts’ expectations of $1.42 billion. During the same quarter last year, the business posted $0.86 earnings per share. The business’s revenue for the quarter was up .7% on a year-over-year basis. analysts forecast that Cincinnati Financial will post 2.65 EPS for the current year.
The firm also recently declared a quarterly dividend, which was paid on Tuesday, January 16th. Shareholders of record on Wednesday, December 20th were paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 2.67%. The ex-dividend date of this dividend was Tuesday, December 19th. Cincinnati Financial’s payout ratio is 66.01%.
A number of large investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in Cincinnati Financial by 2.4% in the 2nd quarter. Vanguard Group Inc. now owns 17,010,783 shares of the insurance provider’s stock worth $1,232,431,000 after buying an additional 392,312 shares during the last quarter. State Street Corp raised its holdings in shares of Cincinnati Financial by 0.6% during the 2nd quarter. State Street Corp now owns 10,126,768 shares of the insurance provider’s stock valued at $733,677,000 after buying an additional 58,443 shares during the period. Truepoint Inc. raised its holdings in shares of Cincinnati Financial by 7,395.5% during the 3rd quarter. Truepoint Inc. now owns 1,954,901 shares of the insurance provider’s stock valued at $1,955,000 after buying an additional 1,928,820 shares during the period. Royal Bank of Canada raised its holdings in shares of Cincinnati Financial by 3.3% during the 2nd quarter. Royal Bank of Canada now owns 1,879,885 shares of the insurance provider’s stock valued at $136,198,000 after buying an additional 60,921 shares during the period. Finally, Janus Henderson Group PLC raised its holdings in shares of Cincinnati Financial by 4,980.7% during the 2nd quarter. Janus Henderson Group PLC now owns 1,023,094 shares of the insurance provider’s stock valued at $74,123,000 after buying an additional 1,002,957 shares during the period. 64.45% of the stock is currently owned by hedge funds and other institutional investors.
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Cincinnati Financial Company Profile
Cincinnati Financial Corporation is an insurance holding company. It operates through five segments: Commercial lines insurance, Personal lines insurance, Excess and surplus lines insurance, and Life insurance and Investments. Its Commercial Lines Insurance Segment provides five commercial business lines: commercial casualty, commercial property, commercial auto, workers’ compensation and other commercial lines.
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