According to Zacks, “Low leverage, ample capital, consistent cash flow generation, favorable reserve release, share repurchases and consistent dividend hikes should drive growth for Cincinnati Financial. Management is appointing agencies and expanding product offerings to compensate for the decline in business. Notably, the company’s subsidiary, The Cincinnati Insurance, expanded its Executive Capstone program by appointing some new independent insurance agency partners in California. Also, in an effort to expand and drive greater returns from its Commercial lines business, Cincinnati Financial has announced personnel changes at the unit. The change in leadership marks the completion of the company’s transition plan announced in Nov 2015. However, exposure to cat losses, and continued turmoil in group benefits associated with the ACA are headwinds. Absence of any near term catalysts, the Zacks Consensus Estimate remains unchanged over the last 60 days.”
Separately, MKM Partners increased their price target on Cincinnati Financial Corp. from $80.00 to $90.00 and gave the stock a buy rating in a report on Friday, July 15th.
Shares of Cincinnati Financial Corp. (NASDAQ:CINF) remained flat at $75.27 during trading on Tuesday. The stock had a trading volume of 80,201 shares. The stock has a market cap of $12.39 billion, a P/E ratio of 19.50 and a beta of 0.78. The company has a 50-day moving average price of $76.08 and a 200-day moving average price of $71.09. Cincinnati Financial Corp. has a 12 month low of $52.63 and a 12 month high of $78.09.
Cincinnati Financial Corp. (NASDAQ:CINF) last issued its earnings results on Tuesday, July 26th. The company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.43 by $0.14. Cincinnati Financial Corp. had a return on equity of 9.02% and a net margin of 12.15%. The business earned $1.37 billion during the quarter, compared to the consensus estimate of $1.32 billion. During the same period last year, the company earned $0.83 EPS. The company’s revenue for the quarter was up 4.2% on a year-over-year basis. On average, equities research analysts predict that Cincinnati Financial Corp. will post $3.19 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, October 14th. Stockholders of record on Wednesday, September 21st will be issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.55%. The ex-dividend date is Monday, September 19th. Cincinnati Financial Corp.’s dividend payout ratio is presently 49.74%.
Institutional investors have recently added to or reduced their stakes in the company. Renaissance Technologies LLC boosted its position in Cincinnati Financial Corp. by 228.7% in the first quarter. Renaissance Technologies LLC now owns 967,700 shares of the company’s stock worth $63,249,000 after buying an additional 673,300 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Cincinnati Financial Corp. by 3.2% in the second quarter. Vanguard Group Inc. now owns 14,818,764 shares of the company’s stock worth $1,109,777,000 after buying an additional 462,130 shares during the period. Janus Capital Management LLC boosted its position in shares of Cincinnati Financial Corp. by 35.4% in the second quarter. Janus Capital Management LLC now owns 1,637,632 shares of the company’s stock worth $122,642,000 after buying an additional 428,092 shares during the period. Goldman Sachs Group Inc. boosted its position in shares of Cincinnati Financial Corp. by 53.2% in the first quarter. Goldman Sachs Group Inc. now owns 1,159,746 shares of the company’s stock worth $75,801,000 after buying an additional 402,619 shares during the period. Finally, Ameriprise Financial Inc. boosted its position in shares of Cincinnati Financial Corp. by 229.2% in the second quarter. Ameriprise Financial Inc. now owns 424,212 shares of the company’s stock worth $31,842,000 after buying an additional 295,344 shares during the period. Institutional investors and hedge funds own 61.38% of the company’s stock.
About Cincinnati Financial Corp.
Cincinnati Financial Corporation is an insurance holding company. The Company is engaged in the business of property casualty insurance marketed through independent insurance agencies in over 40 states. It operates through five segments: Commercial lines insurance, Personal lines insurance, Excess and surplus lines insurance, Life insurance and Investments.
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