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 Wednesday morning. The firm currently has $86.00 target price on the insurance provider’s stock.
According to Zacks, “Shares of Cincinnati Financial have outperformed the industry quarter to date. The company‘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 its business profile. Net investment income growth is expected in the near term, driven by rising interest rates. The company has replaced its existing catastrophe bond program with a new collateralized reinsurance to mitigate the loss. The Zacks Consensus Estimate have moved up nearly 9% for 2018 and 2.2% for 2019 in the last 60 days. However, exposure to cat loss and a continued turmoil in group benefits associated with the ACA are concerns. Higher expenses might also weigh on the desired margin expansion.”
Several other research firms also recently issued reports on CINF. Sandler O’Neill restated a neutral rating on shares of Cincinnati Financial in a research report on Friday, July 27th. BidaskClub downgraded Cincinnati Financial from a hold rating to a sell rating in a research report on Thursday, June 7th. Finally, Credit Suisse Group started coverage on Cincinnati Financial in a research report on Tuesday, August 7th. They set an underperform rating and a $70.00 target price on the stock. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the stock. Cincinnati Financial has a consensus rating of Hold and a consensus price target of $78.00.
Cincinnati Financial (NASDAQ:CINF) last posted its earnings results on Thursday, July 26th. The insurance provider reported $0.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.54 by $0.27. The firm had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.43 billion. Cincinnati Financial had a return on equity of 6.36% and a net margin of 16.59%. The business’s quarterly revenue was up 12.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.64 earnings per share. analysts predict that Cincinnati Financial will post 3.15 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Monday, October 15th. Stockholders of record on Wednesday, September 19th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Tuesday, September 18th. This represents a $2.12 annualized dividend and a dividend yield of 2.73%. Cincinnati Financial’s payout ratio is currently 77.37%.
Several institutional investors have recently added to or reduced their stakes in CINF. DekaBank Deutsche Girozentrale increased its holdings in shares of Cincinnati Financial by 131.2% in the first quarter. DekaBank Deutsche Girozentrale now owns 19,766 shares of the insurance provider’s stock worth $1,527,000 after purchasing an additional 11,218 shares during the period. Trexquant Investment LP bought a new position in shares of Cincinnati Financial in the first quarter worth $565,000. D.A. Davidson & CO. increased its holdings in shares of Cincinnati Financial by 25.6% in the first quarter. D.A. Davidson & CO. now owns 4,576 shares of the insurance provider’s stock worth $340,000 after purchasing an additional 932 shares during the period. State of Wisconsin Investment Board bought a new position in shares of Cincinnati Financial in the first quarter worth $304,000. Finally, Schwab Charles Investment Management Inc. increased its holdings in shares of Cincinnati Financial by 2.7% in the first quarter. Schwab Charles Investment Management Inc. now owns 535,053 shares of the insurance provider’s stock worth $39,734,000 after purchasing an additional 14,084 shares during the period. 62.21% of the stock is currently owned by hedge funds and other institutional investors.
Cincinnati Financial Company Profile
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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