Cincinnati Financial (CINF) Lifted to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Cincinnati Financial (NASDAQ:CINF) from a hold rating to a buy rating in a research note issued to investors on Wednesday morning. They currently have $86.00 target price on the insurance provider’s stock.

According to Zacks, “Shares of Cincinnati Financial have outperformed the industry quarter to date. The company‘s  low leverage, ample capital, consistent cash flow generation, favorable reserve release, share repurchases and consistent dividend hikes should drive growth. Management is appointing agencies and expanding product offerings to ramp up its business profile. Net investment income growth is expected in the near term, driven by rising interest rates. The company has replaced its existing catastrophe bond program with a new collateralized reinsurance to mitigate the loss. The Zacks Consensus Estimate  have moved up nearly 9% for 2018 and 2.2% for 2019 in the last 60 days. However, exposure to cat loss and a continued turmoil in group benefits associated with the ACA are concerns. Higher expenses might also weigh on the desired margin expansion.”

A number of other equities analysts also recently weighed in on CINF. BidaskClub upgraded Cincinnati Financial from a sell rating to a hold rating in a research note on Tuesday, September 11th. Sandler O’Neill restated a neutral rating on shares of Cincinnati Financial in a research note on Friday, July 27th. Finally, Credit Suisse Group assumed coverage on Cincinnati Financial in a research note on Tuesday, August 7th. They issued an underperform rating and a $70.00 target price on the stock. One research analyst has rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company’s stock. The company presently has an average rating of Hold and a consensus price target of $78.00.

Shares of NASDAQ CINF opened at $77.77 on Wednesday. Cincinnati Financial has a twelve month low of $66.33 and a twelve month high of $78.04. The company has a market capitalization of $12.36 billion, a PE ratio of 28.38 and a beta of 0.84. The company has a current ratio of 0.27, a quick ratio of 0.27 and a debt-to-equity ratio of 0.11.

Cincinnati Financial (NASDAQ:CINF) last announced its earnings results on Thursday, July 26th. The insurance provider reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.54 by $0.27. Cincinnati Financial had a return on equity of 6.36% and a net margin of 16.59%. The firm had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter in the previous year, the business earned $0.64 EPS. The company’s revenue was up 12.4% compared to the same quarter last year. analysts forecast that Cincinnati Financial will post 3.15 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Monday, October 15th. Stockholders of record on Wednesday, September 19th will be paid a $0.53 dividend. The ex-dividend date of this dividend is Tuesday, September 18th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.73%. Cincinnati Financial’s payout ratio is presently 77.37%.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. DekaBank Deutsche Girozentrale lifted its stake in Cincinnati Financial by 131.2% in the first quarter. DekaBank Deutsche Girozentrale now owns 19,766 shares of the insurance provider’s stock valued at $1,527,000 after purchasing an additional 11,218 shares during the last quarter. Trexquant Investment LP purchased a new position in Cincinnati Financial in the first quarter valued at approximately $565,000. D.A. Davidson & CO. lifted its stake in Cincinnati Financial by 25.6% in the first quarter. D.A. Davidson & CO. now owns 4,576 shares of the insurance provider’s stock valued at $340,000 after purchasing an additional 932 shares during the last quarter. State of Wisconsin Investment Board purchased a new position in Cincinnati Financial in the first quarter valued at approximately $304,000. Finally, Schwab Charles Investment Management Inc. lifted its stake in Cincinnati Financial by 2.7% in the first quarter. Schwab Charles Investment Management Inc. now owns 535,053 shares of the insurance provider’s stock valued at $39,734,000 after purchasing an additional 14,084 shares during the last quarter. Hedge funds and other institutional investors own 62.21% of the company’s stock.

Cincinnati Financial Company Profile

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

See Also: Fiduciary

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