Cincinnati Financial (NASDAQ:CINF) Hits New 12-Month High - Still a Buy?

Key Points

• Cincinnati Financial reached a new 52-week high, trading around $195.29 after a prior close of $184.34.
• The insurer reported quarterly EPS of $2.86, beating estimates of $2.05, while revenue rose 4.8% year over year to $3.05 billion.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $191.60; the company also pays an annualized dividend of $3.76 per share, a 1.9% yield.

Cincinnati Financial Corporation (NASDAQ:CINF - Get Free Report)'s stock price hit a new 52-week high during trading on Thursday. The company traded as high as $195.03 and last traded at $195.2850, with a volume of 25,915 shares trading hands. The stock had previously closed at $184.34.

Wall Street Analysts Forecast Growth

CINF has been the subject of a number of recent analyst reports. Atlantic Securities set a $197.00 price objective on shares of Cincinnati Financial in a research report on Wednesday, July 15th. Keefe, Bruyette & Woods cut their price objective on Cincinnati Financial from $190.00 to $171.00 and set a "market perform" rating for the company in a research report on Monday, October 12th. Bank of America cut shares of Cincinnati Financial from a "buy" rating to a "neutral" rating and decreased their price target for the stock from $197.00 to $193.00 in a research note on Thursday, July 30th. Weiss Ratings lowered Cincinnati Financial from a "buy (a)" rating to a "buy (a-)" rating in a research note on Thursday, October 8th. Finally, Roth Capital lifted their price target on shares of Cincinnati Financial from $190.00 to $200.00 and gave the company a "buy" rating in a report on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $191.60.

Cincinnati Financial Price Performance

The business's 50-day moving average price is $170.28 and its two-hundred day moving average price is $168.50. The firm has a market cap of $29.96 billion, a price-to-earnings ratio of 11.42, a P/E/G ratio of 2.91 and a beta of 0.48. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.27 and a quick ratio of 0.27.

Cincinnati Financial (NASDAQ:CINF - Get Free Report) last issued its earnings results on Monday, October 26th. The insurance provider reported $2.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.05 by $0.81. Cincinnati Financial had a net margin of 20.07% and a return on equity of 9.48%. The business had revenue of $3.05 billion for the quarter, compared to analyst estimates of $2.64 billion. During the same quarter in the prior year, the business posted $2.85 EPS. The company's revenue for the quarter was up 4.8% on a year-over-year basis. On average, research analysts forecast that Cincinnati Financial Corporation will post 9.26 EPS for the current fiscal year.

Cincinnati Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 23rd were given a dividend of $0.94 per share. The ex-dividend date was Wednesday, September 23rd. This represents a $3.76 annualized dividend and a dividend yield of 1.9%. Cincinnati Financial's dividend payout ratio (DPR) is 22.05%.

Insider Buying and Selling at Cincinnati Financial

In other Cincinnati Financial news, Director Dirk Debbink acquired 1,000 shares of the stock in a transaction dated Tuesday, August 25th. The shares were bought at an average price of $171.64 per share, with a total value of $171,640.00. Following the purchase, the director directly owned 62,059 shares of the company's stock, valued at approximately $10,651,806.76. This trade represents a 1.64% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 2.94% of the company's stock.

Hedge Funds Weigh In On Cincinnati Financial

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. State Street Corp grew its holdings in shares of Cincinnati Financial by 225.5% during the second quarter. State Street Corp now owns 26,974,052 shares of the insurance provider's stock worth $4,993,976,000 after purchasing an additional 18,686,673 shares during the last quarter. Envestnet Asset Management Inc. raised its holdings in Cincinnati Financial by 1,474.8% in the 2nd quarter. Envestnet Asset Management Inc. now owns 2,242,991 shares of the insurance provider's stock valued at $415,267,000 after buying an additional 2,100,563 shares during the last quarter. First Trust Advisors LP raised its holdings in Cincinnati Financial by 59.4% in the 1st quarter. First Trust Advisors LP now owns 2,104,457 shares of the insurance provider's stock valued at $331,136,000 after buying an additional 784,584 shares during the last quarter. Bank of America Corp DE acquired a new stake in Cincinnati Financial during the 2nd quarter worth approximately $347,891,000. Finally, Assenagon Asset Management S.A. bought a new stake in Cincinnati Financial during the 3rd quarter worth approximately $248,705,000. Institutional investors and hedge funds own 65.24% of the company's stock.

About Cincinnati Financial

Cincinnati Financial Corporation is an insurance holding company headquartered in Fairfield, Ohio. Founded in 1950 by four independent insurance agents, the company markets its products primarily through a network of independent agencies.

The company's principal business is property and casualty insurance. Its offerings include commercial insurance for businesses, personal insurance for individuals and families, and specialty coverage for risks that may require more customized underwriting.

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