Cincinnati Financial (NASDAQ:CINF) Releases Earnings Results

Key Points

• Cincinnati Financial reported Q1 EPS of $2.10, beating the $1.96 consensus, and revenue of $2.86 billion versus estimates of $2.60 billion, with a net margin of 18.94% and ROE of 8.45%.
• The company raised its quarterly dividend to $0.94 from $0.87 (annualized $3.76), implying a 2.3% yield and a payout ratio of about 24.8%.
• Shares climbed to $165.64 on above-average volume; the stock trades at a P/E of 10.92 with a MarketBeat consensus rating of Buy and a $174.75 target amid mixed analyst moves.

Cincinnati Financial (NASDAQ:CINF - Get Free Report) posted its quarterly earnings results on Monday. The insurance provider reported $2.10 earnings per share for the quarter, topping analysts' consensus estimates of $1.96 by $0.14, FiscalAI reports. The business had revenue of $2.86 billion during the quarter, compared to analyst estimates of $2.60 billion. Cincinnati Financial had a net margin of 18.94% and a return on equity of 8.45%.

Cincinnati Financial Price Performance

Shares of NASDAQ:CINF traded up $1.16 during midday trading on Monday, reaching $165.64. 900,649 shares of the company were exchanged, compared to its average volume of 763,226. The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 0.06. The business's fifty day moving average is $162.63 and its two-hundred day moving average is $162.41. Cincinnati Financial has a one year low of $133.48 and a one year high of $174.27. The stock has a market cap of $25.79 billion, a PE ratio of 10.92, a price-to-earnings-growth ratio of 4.34 and a beta of 0.63.

Cincinnati Financial Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 24th were given a dividend of $0.94 per share. This is a positive change from Cincinnati Financial's previous quarterly dividend of $0.87. This represents a $3.76 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date was Tuesday, March 24th. Cincinnati Financial's dividend payout ratio (DPR) is currently 24.79%.

Hedge Funds Weigh In On Cincinnati Financial

Hedge funds and other institutional investors have recently modified their holdings of the stock. Motiv8 Investments LLC bought a new position in shares of Cincinnati Financial during the fourth quarter worth $29,000. DV Equities LLC bought a new position in shares of Cincinnati Financial during the fourth quarter worth $36,000. Parkside Financial Bank & Trust boosted its position in shares of Cincinnati Financial by 67.7% during the fourth quarter. Parkside Financial Bank & Trust now owns 317 shares of the insurance provider's stock worth $52,000 after acquiring an additional 128 shares during the last quarter. MUFG Securities EMEA plc bought a new position in shares of Cincinnati Financial during the second quarter worth $69,000. Finally, Zions Bancorporation National Association UT boosted its position in shares of Cincinnati Financial by 25.7% during the fourth quarter. Zions Bancorporation National Association UT now owns 528 shares of the insurance provider's stock worth $86,000 after acquiring an additional 108 shares during the last quarter. Institutional investors own 65.24% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on CINF shares. Keefe, Bruyette & Woods dropped their price target on shares of Cincinnati Financial from $191.00 to $190.00 and set an "outperform" rating for the company in a research report on Tuesday, April 7th. Bank of America dropped their price target on shares of Cincinnati Financial from $178.00 to $177.00 and set a "buy" rating for the company in a research report on Tuesday, April 14th. Wall Street Zen lowered shares of Cincinnati Financial from a "buy" rating to a "hold" rating in a research report on Sunday, February 8th. Finally, Weiss Ratings upgraded shares of Cincinnati Financial from a "buy (b)" rating to a "buy (a-)" rating in a research report on Tuesday, April 21st. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, Cincinnati Financial presently has a consensus rating of "Buy" and a consensus target price of $174.75.

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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