Cincinnati Financial (CINF) Upgraded to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Cincinnati Financial (NASDAQ:CINF) from a hold rating to a buy rating in a research report sent to investors 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 downgraded Cincinnati Financial from a sell rating to a strong sell rating in a report on Wednesday, January 10th. One investment analyst has rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the stock. The stock presently has a consensus rating of Hold and an average target price of $78.50.
Cincinnati Financial (NASDAQ:CINF) last announced its earnings results on Thursday, October 26th. The insurance provider reported $0.58 EPS for the quarter, beating the consensus estimate of $0.53 by $0.05. The business had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.42 billion. Cincinnati Financial had a return on equity of 5.85% and a net margin of 8.93%. The company’s revenue was up .7% on a year-over-year basis. During the same period last year, the business posted $0.86 EPS. equities research analysts expect that Cincinnati Financial will post 2.65 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, January 16th. Shareholders of record on Wednesday, December 20th were issued a dividend of $0.50 per share. The ex-dividend date was Tuesday, December 19th. This represents a $2.00 annualized dividend and a yield of 2.67%. Cincinnati Financial’s dividend payout ratio is presently 66.01%.
Hedge funds have recently bought and sold shares of the business. Seven Eight Capital LP purchased a new stake in Cincinnati Financial during the 2nd quarter worth approximately $101,000. Canada Pension Plan Investment Board increased its holdings in Cincinnati Financial by 12,727.3% during the 3rd quarter. Canada Pension Plan Investment Board now owns 1,411 shares of the insurance provider’s stock worth $108,000 after purchasing an additional 1,400 shares during the last quarter. People s United Financial Inc. increased its holdings in Cincinnati Financial by 6.5% during the 2nd quarter. People s United Financial Inc. now owns 1,802 shares of the insurance provider’s stock worth $131,000 after purchasing an additional 110 shares during the last quarter. San Francisco Sentry Investment Group CA purchased a new stake in Cincinnati Financial during the 2nd quarter worth approximately $152,000. Finally, WFG Advisors LP increased its holdings in Cincinnati Financial by 39.4% during the 2nd quarter. WFG Advisors LP now owns 2,542 shares of the insurance provider’s stock worth $184,000 after purchasing an additional 718 shares during the last quarter. Institutional investors own 64.45% of the company’s stock.
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About Cincinnati Financial
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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