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

Cincinnati Financial Co. (NASDAQ:CINF)’s share price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. 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 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.90 by $1.24. Cincinnati Financial had a net margin of 25.26% and a return on equity of 8.25%.

Cincinnati Financial Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, April 15th. Stockholders of record on Monday, March 24th will be paid a dividend of $0.87 per share. This is an increase from Cincinnati Financial’s previous quarterly dividend of $0.81. The ex-dividend date is Monday, March 24th. This represents a $3.48 annualized dividend and a dividend yield of 2.43%. Cincinnati Financial’s dividend payout ratio is presently 16.65%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CINF. Piper Sandler boosted their target price on shares of Cincinnati Financial from $116.00 to $126.00 and gave the company a “neutral” rating in a report on Tuesday, October 29th. Keefe, Bruyette & Woods upped their target price on shares of Cincinnati Financial from $152.00 to $156.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 29th. One equities research analyst has rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $143.33.

Insider Buying and Selling at Cincinnati Financial

In related news, Director Dirk J. Debbink purchased 1,000 shares of Cincinnati Financial stock in a transaction dated Tuesday, December 3rd. The stock was purchased at an average cost of $157.19 per share, for a total transaction of $157,190.00. Following the completion of the acquisition, the director now directly owns 54,500 shares of the company’s stock, valued at $8,566,855. The trade was a 1.87 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 2.83% of the stock is owned by company insiders.

Institutional Trading of Cincinnati Financial

Several institutional investors have recently bought and sold shares of CINF. Brown Brothers Harriman & Co. lifted its stake in shares of Cincinnati Financial by 2.1% in the third quarter. Brown Brothers Harriman & Co. now owns 3,378 shares of the insurance provider’s stock worth $460,000 after buying an additional 68 shares in the last quarter. Simon Quick Advisors LLC increased its holdings in shares of Cincinnati Financial by 5.0% in the 4th quarter. Simon Quick Advisors LLC now owns 1,562 shares of the insurance provider’s stock worth $224,000 after purchasing an additional 74 shares in the last quarter. Wealth Dimensions Group Ltd. raised its stake in shares of Cincinnati Financial by 0.9% in the third quarter. Wealth Dimensions Group Ltd. now owns 8,069 shares of the insurance provider’s stock worth $1,098,000 after purchasing an additional 75 shares during the last quarter. Park Avenue Securities LLC lifted its holdings in shares of Cincinnati Financial by 0.4% during the fourth quarter. Park Avenue Securities LLC now owns 17,473 shares of the insurance provider’s stock valued at $2,511,000 after purchasing an additional 78 shares in the last quarter. Finally, UMB Bank n.a. boosted its position in shares of Cincinnati Financial by 7.4% during the third quarter. UMB Bank n.a. now owns 1,140 shares of the insurance provider’s stock valued at $155,000 after buying an additional 79 shares during the last quarter. 65.24% of the stock is owned by hedge funds and other institutional investors.

Cincinnati Financial Price Performance

The firm has a fifty day moving average of $143.26 and a 200 day moving average of $140.36. The company has a current ratio of 0.31, a quick ratio of 0.31 and a debt-to-equity ratio of 0.06. The company has a market capitalization of $22.34 billion, a P/E ratio of 7.33, a P/E/G ratio of 2.42 and a beta of 0.71.

Cincinnati Financial Company Profile

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.