Cincinnati Financial (NASDAQ: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 report released on Thursday, January 4th. Zacks Investment Research currently has $82.00 target price 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 and expects to retain the momentum in the near term as well. The company saw its 2018 estimate moving north in the last 60 days. However, Cincinnati Financial’s 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.”

Separately, BidaskClub downgraded shares of Cincinnati Financial from a sell rating to a strong sell rating in a report on Thursday, December 14th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company’s stock. Cincinnati Financial presently has a consensus rating of Hold and a consensus target price of $78.50.

Shares of Cincinnati Financial (NASDAQ CINF) traded up $0.58 during mid-day trading on Thursday, hitting $72.77. 551,000 shares of the stock traded hands, compared to its average volume of 560,263. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.29 and a current ratio of 0.29. Cincinnati Financial has a 12 month low of $68.24 and a 12 month high of $81.98. The stock has a market cap of $12,150.00, a price-to-earnings ratio of 24.02 and a beta of 0.93.

Cincinnati Financial (NASDAQ:CINF) last issued its quarterly earnings results on Thursday, October 26th. The insurance provider reported $0.58 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.53 by $0.05. The company had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.42 billion. Cincinnati Financial had a net margin of 8.93% and a return on equity of 5.85%. Cincinnati Financial’s quarterly revenue was up .7% compared to the same quarter last year. During the same quarter last year, the business posted $0.86 EPS. equities research analysts anticipate that Cincinnati Financial will post 2.65 earnings per share for the current fiscal year.

The company also recently declared a special dividend, which was paid on Friday, December 15th. Shareholders of record on Friday, December 1st were issued a $0.50 dividend. This represents a yield of 2.72%. This is an increase from Cincinnati Financial’s previous special dividend of $0.46. The ex-dividend date of this dividend was Thursday, November 30th. Cincinnati Financial’s dividend payout ratio (DPR) is presently 66.01%.

A number of large investors have recently made changes to their positions in CINF. Truepoint Inc. boosted its holdings in Cincinnati Financial by 7,395.5% in the 3rd quarter. Truepoint Inc. now owns 1,954,901 shares of the insurance provider’s stock valued at $1,955,000 after purchasing an additional 1,928,820 shares during the period. Janus Henderson Group PLC lifted 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 worth $74,123,000 after acquiring an additional 1,002,957 shares during the last quarter. Vanguard Group Inc. lifted its holdings in shares of Cincinnati Financial by 2.4% during the 2nd quarter. Vanguard Group Inc. now owns 17,010,783 shares of the insurance provider’s stock worth $1,232,431,000 after acquiring an additional 392,312 shares during the last quarter. Fairpointe Capital LLC lifted its holdings in shares of Cincinnati Financial by 72.3% during the 2nd quarter. Fairpointe Capital LLC now owns 811,439 shares of the insurance provider’s stock worth $58,789,000 after acquiring an additional 340,373 shares during the last quarter. Finally, Renaissance Technologies LLC lifted its holdings in shares of Cincinnati Financial by 118.1% during the 2nd quarter. Renaissance Technologies LLC now owns 375,000 shares of the insurance provider’s stock worth $27,169,000 after acquiring an additional 203,055 shares during the last quarter. 64.44% of the stock is 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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