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

Cincinnati Financial Co. (NASDAQ:CINF)’s share price gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $135.62, but opened at $141.51. Cincinnati Financial shares last traded at $141.53, with a volume of 106,702 shares traded.

The insurance provider reported $3.14 EPS for the quarter, topping analysts’ consensus estimates of $1.90 by $1.24. Cincinnati Financial had a return on equity of 8.25% and a net margin of 25.26%.

Cincinnati Financial Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 15th. Shareholders of record on Monday, March 24th will be issued a dividend of $0.87 per share. The ex-dividend date is Monday, March 24th. This is a boost from Cincinnati Financial’s previous quarterly dividend of $0.81. This represents a $3.48 dividend on an annualized basis and a yield of 2.60%. Cincinnati Financial’s dividend payout ratio (DPR) is currently 16.65%.

Analyst Ratings Changes

A number of equities research analysts have commented on CINF shares. Keefe, Bruyette & Woods raised their price target on Cincinnati Financial from $152.00 to $156.00 and gave the company an “outperform” rating in a report on Tuesday, October 29th. Piper Sandler raised their price target on Cincinnati Financial from $116.00 to $126.00 and gave the company a “neutral” rating in a report on Tuesday, October 29th. Finally, Roth Mkm raised their price target on Cincinnati Financial from $140.00 to $160.00 and gave the company a “buy” rating in a report on Wednesday. One equities research analyst has rated the stock with a hold rating and five have given a buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $146.67.

Insider Activity

In other news, Director Dirk J. Debbink acquired 1,000 shares of the business’s stock in a transaction dated Tuesday, December 3rd. The stock was purchased at an average price of $157.19 per share, for a total transaction of $157,190.00. Following the completion of the transaction, the director now directly owns 54,500 shares in the company, valued at approximately $8,566,855. This trade represents a 1.87 % increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.83% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Catalyst Capital Advisors LLC purchased a new position in Cincinnati Financial in the third quarter worth about $27,000. Migdal Insurance & Financial Holdings Ltd. purchased a new position in Cincinnati Financial in the fourth quarter worth about $27,000. Legacy Investment Solutions LLC purchased a new position in Cincinnati Financial in the third quarter worth about $28,000. Y.D. More Investments Ltd grew its position in Cincinnati Financial by 121.8% in the fourth quarter. Y.D. More Investments Ltd now owns 193 shares of the insurance provider’s stock worth $28,000 after acquiring an additional 106 shares in the last quarter. Finally, True Wealth Design LLC purchased a new position in Cincinnati Financial in the third quarter worth about $42,000. Hedge funds and other institutional investors own 65.24% of the company’s stock.

Cincinnati Financial Stock Down 4.1 %

The company has a 50-day simple moving average of $142.92 and a 200-day simple moving average of $140.47. The firm has a market cap of $20.90 billion, a PE ratio of 6.87, a price-to-earnings-growth ratio of 2.42 and a beta of 0.71. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.31 and a quick ratio of 0.31.

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.