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

Cincinnati Financial Co. (NASDAQ:CINF) shares 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.

The insurance provider reported $3.14 earnings per share (EPS) for the quarter, beating 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 disclosed a quarterly dividend, which will be paid on Tuesday, April 15th. Shareholders of record on Monday, March 24th will be given a $0.87 dividend. 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 2.50%. The ex-dividend date of this dividend is Monday, March 24th. Cincinnati Financial’s dividend payout ratio is presently 16.65%.

Wall Street Analyst Weigh In

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

Insider Buying and Selling at Cincinnati Financial

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

Hedge Funds Weigh In On Cincinnati Financial

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

Cincinnati Financial Stock Performance

The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $21.80 billion, a price-to-earnings ratio of 7.16, a P/E/G ratio of 2.42 and a beta of 0.71. The company has a 50-day moving average price of $143.26 and a 200-day moving average price of $140.36.

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.