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

Cincinnati Financial Co. (NASDAQ:CINF) gapped up prior to trading 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 trading hands.

The insurance provider reported $3.14 earnings per share 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 firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 15th. Stockholders 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 represents a $3.48 dividend on an annualized basis and a dividend yield of 2.43%. This is an increase from Cincinnati Financial’s previous quarterly dividend of $0.81. Cincinnati Financial’s dividend payout ratio (DPR) is currently 16.65%.

Wall Street Analyst Weigh In

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

Insider Buying and Selling

In related news, Director Dirk J. Debbink bought 1,000 shares of Cincinnati Financial stock in a transaction that occurred on Tuesday, December 3rd. The stock was acquired at an average price of $157.19 per share, with a total value of $157,190.00. Following the acquisition, the director now owns 54,500 shares of the company’s stock, valued at approximately $8,566,855. This represents a 1.87 % increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 2.83% of the stock is currently owned by corporate insiders.

Institutional Trading of Cincinnati Financial

A number of institutional investors have recently bought and sold shares of CINF. Catalyst Capital Advisors LLC acquired a new stake in Cincinnati Financial during the third quarter worth about $27,000. Migdal Insurance & Financial Holdings Ltd. acquired a new stake in Cincinnati Financial in the fourth quarter valued at approximately $27,000. Legacy Investment Solutions LLC bought a new position in shares of Cincinnati Financial in the 3rd quarter valued at $28,000. Y.D. More Investments Ltd raised 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 valued at $28,000 after purchasing an additional 106 shares during the last quarter. Finally, True Wealth Design LLC acquired a new stake in shares of Cincinnati Financial during the third quarter worth $42,000. Institutional investors own 65.24% of the company’s stock.

Cincinnati Financial Stock Performance

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