Bank of America Issues Pessimistic Forecast for Cincinnati Financial (NASDAQ:CINF) Stock Price

Key Points

• Bank of America trimmed its price target on Cincinnati Financial to $177 but maintained a "buy" rating, which implies about an 8.3% upside from the prior close.
• Analysts collectively rate CINF a "Moderate Buy" with an average target of $174.75, while the stock traded at $163.49 and shows a P/E of 10.78 and market cap of $25.45 billion, suggesting only modest near-term upside.
• Cincinnati reported stronger-than-expected quarterly results (EPS $3.37 vs. $2.86; revenue up 21.8% YoY) and saw significant institutional buying — notably a new ~$270.9M stake from Norges Bank — with institutions owning about 65% of shares.

Cincinnati Financial (NASDAQ:CINF - Get Free Report) had its price objective decreased by research analysts at Bank of America from $178.00 to $177.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the insurance provider's stock. Bank of America's price objective indicates a potential upside of 8.26% from the company's previous close.

A number of other equities research analysts have also recently weighed in on CINF. Keefe, Bruyette & Woods cut their price objective on shares of Cincinnati Financial from $191.00 to $190.00 and set an "outperform" rating on the stock in a research note on Tuesday, April 7th. Weiss Ratings cut shares of Cincinnati Financial from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Tuesday, March 24th. Piper Sandler lifted their price objective on shares of Cincinnati Financial from $150.00 to $157.00 and gave the company a "neutral" rating in a research note on Monday, December 22nd. Finally, Wall Street Zen cut shares of Cincinnati Financial from a "buy" rating to a "hold" rating in a research note on Sunday, February 8th. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $174.75.

Cincinnati Financial Stock Performance

CINF stock traded down $0.19 during mid-day trading on Tuesday, reaching $163.49. The company had a trading volume of 176,797 shares, compared to its average volume of 748,394. The company has a quick ratio of 0.29, a current ratio of 0.29 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $25.45 billion, a P/E ratio of 10.78, a P/E/G ratio of 3.63 and a beta of 0.63. Cincinnati Financial has a one year low of $126.45 and a one year high of $174.27. The stock's 50-day simple moving average is $162.88 and its two-hundred day simple moving average is $162.15.

Cincinnati Financial (NASDAQ:CINF - Get Free Report) last posted its earnings results on Monday, February 9th. The insurance provider reported $3.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.86 by $0.51. Cincinnati Financial had a return on equity of 8.45% and a net margin of 18.94%.The company had revenue of $3.09 billion for the quarter, compared to analysts' expectations of $2.92 billion. During the same period last year, the business posted $3.14 earnings per share. The firm's quarterly revenue was up 21.8% compared to the same quarter last year. Research analysts anticipate that Cincinnati Financial will post 5.36 EPS for the current year.

Institutional Investors Weigh In On Cincinnati Financial

Several hedge funds and other institutional investors have recently bought and sold shares of CINF. Norges Bank bought a new stake in Cincinnati Financial in the fourth quarter worth about $270,892,000. Arrowstreet Capital Limited Partnership raised its position in Cincinnati Financial by 193.3% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 601,033 shares of the insurance provider's stock worth $98,161,000 after acquiring an additional 396,086 shares in the last quarter. First Trust Advisors LP raised its position in Cincinnati Financial by 38.5% in the fourth quarter. First Trust Advisors LP now owns 1,319,873 shares of the insurance provider's stock worth $215,562,000 after acquiring an additional 367,224 shares in the last quarter. Raymond James Financial Inc. raised its position in Cincinnati Financial by 48.6% in the second quarter. Raymond James Financial Inc. now owns 803,665 shares of the insurance provider's stock worth $119,682,000 after acquiring an additional 262,715 shares in the last quarter. Finally, Korea Investment CORP increased its stake in Cincinnati Financial by 210.0% in the 3rd quarter. Korea Investment CORP now owns 294,423 shares of the insurance provider's stock worth $46,548,000 after purchasing an additional 199,437 shares in the last quarter. 65.24% of the stock is currently owned by institutional investors.

About Cincinnati Financial

Cincinnati Financial Corporation NASDAQ: CINF is an insurance holding company headquartered in the Cincinnati area of Ohio that provides property and casualty insurance products and related services. Founded as part of the Cincinnati Insurance group, the company operates through a set of insurance subsidiaries to underwrite and service policies for both personal and commercial customers. Cincinnati Financial is publicly traded and emphasizes underwriting discipline and long-term relationships with its distribution partners and policyholders.

The company's core business centers on property and casualty insurance, including homeowners, automobile, commercial casualty, commercial multi-peril, and specialty commercial coverages.

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