Cincinnati Financial (NASDAQ:CINF) Shares Gap Up After Earnings Beat

Key Points

• Cincinnati Financial shares gapped up significantly after reporting quarterly earnings of $1.97 EPS, surpassing analyst expectations of $1.39 EPS.
• The company declared a quarterly dividend of $0.87 per share, representing a 2.24% yield and a payout ratio of approximately 37.95%.
• Wall Street analysts upgraded the stock's target price from $150.00 to $167.00 and maintain a consensus rating of "Moderate Buy" with a target price of $155.25.

Cincinnati Financial Corporation (NASDAQ:CINF - Get Free Report) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $147.10, but opened at $154.47. Cincinnati Financial shares last traded at $153.53, with a volume of 80,032 shares changing hands.

The insurance provider reported $1.97 earnings per share for the quarter, topping analysts' consensus estimates of $1.39 by $0.58. Cincinnati Financial had a net margin of 15.59% and a return on equity of 7.14%. The business had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.80 billion. During the same quarter in the prior year, the firm posted $1.29 earnings per share. The company's revenue was up 15.5% compared to the same quarter last year.

Cincinnati Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 15th. Stockholders of record on Monday, June 23rd were given a $0.87 dividend. This represents a $3.48 dividend on an annualized basis and a dividend yield of 2.33%. The ex-dividend date of this dividend was Monday, June 23rd. Cincinnati Financial's dividend payout ratio (DPR) is presently 30.18%.

Analyst Ratings Changes

A number of research firms recently issued reports on CINF. Roth Capital lifted their price target on shares of Cincinnati Financial from $160.00 to $175.00 and gave the company a "buy" rating in a research note on Tuesday. Wall Street Zen raised shares of Cincinnati Financial from a "sell" rating to a "hold" rating in a report on Thursday, April 17th. Finally, Keefe, Bruyette & Woods boosted their target price on shares of Cincinnati Financial from $150.00 to $167.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 9th. Two investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $159.20.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA acquired a new position in Cincinnati Financial during the second quarter worth about $158,000. Forum Financial Management LP lifted its stake in Cincinnati Financial by 2.1% in the 2nd quarter. Forum Financial Management LP now owns 3,949 shares of the insurance provider's stock worth $588,000 after purchasing an additional 80 shares in the last quarter. D.A. Davidson & CO. boosted its holdings in shares of Cincinnati Financial by 4.4% during the 2nd quarter. D.A. Davidson & CO. now owns 4,124 shares of the insurance provider's stock worth $614,000 after purchasing an additional 175 shares during the last quarter. Cullen Frost Bankers Inc. grew its position in shares of Cincinnati Financial by 5.9% in the second quarter. Cullen Frost Bankers Inc. now owns 97,744 shares of the insurance provider's stock valued at $14,556,000 after purchasing an additional 5,473 shares in the last quarter. Finally, Dupree Financial Group LLC grew its position in shares of Cincinnati Financial by 43.3% in the second quarter. Dupree Financial Group LLC now owns 75,911 shares of the insurance provider's stock valued at $11,305,000 after purchasing an additional 22,941 shares in the last quarter. Hedge funds and other institutional investors own 65.24% of the company's stock.

Cincinnati Financial Stock Performance

The stock has a market cap of $23.38 billion, a price-to-earnings ratio of 12.97, a PEG ratio of 9.99 and a beta of 0.76. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.29 and a quick ratio of 0.29. The firm has a fifty day moving average of $147.99 and a 200 day moving average of $142.81.

About Cincinnati Financial

Cincinnati Financial Corporation, together with its subsidiaries, provides property casualty insurance products in the United States. It operates through five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The Commercial Lines Insurance segment offers coverage for commercial casualty, commercial property, commercial auto, and workers' compensation.