Zacks Investment Research Upgrades Cincinnati Financial (CINF) to Buy

Cincinnati Financial (NASDAQ:CINF) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Thursday. The brokerage presently has a $82.00 price target on the insurance provider’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 12.65% from the stock’s previous close.

According to Zacks, “Cincinnati Financial’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 the business. It continues to see net investment income growth and expects to retain the momentum in the near term as well. The company saw its 2018 estimate moving north in the last 60 days. However, Cincinnati Financial’s exposure to cat losses and a continued turmoil in group benefits associated with the ACA are headwinds. The company has projected losses of not less than $1 million each in the fourth quarter from Hurricane Nate and Califirnia Wildfire. The insurer has replaced its existing catastrophe bond program with a new collateralized reinsurance to mitigate the loss. Shares of Cincinnati Financial have underperformed the industry in a year.”

Separately, BidaskClub raised Cincinnati Financial from a “strong sell” rating to a “sell” rating in a report on Saturday, December 30th. One analyst has rated the stock with a sell rating, two have assigned a hold rating and two have assigned a buy rating to the stock. The stock currently has an average rating of “Hold” and an average target price of $78.50.

Shares of Cincinnati Financial (NASDAQ:CINF) traded down $0.29 during trading hours on Thursday, hitting $72.79. The company had a trading volume of 534,000 shares, compared to its average volume of 589,650. The company has a market cap of $11,940.00, a P/E ratio of 24.02 and a beta of 0.93. The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 0.11. Cincinnati Financial has a 52 week low of $68.24 and a 52 week high of $81.98.

Cincinnati Financial (NASDAQ:CINF) last announced its quarterly earnings data on Thursday, October 26th. The insurance provider reported $0.58 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.53 by $0.05. The company had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.42 billion. Cincinnati Financial had a return on equity of 5.85% and a net margin of 8.93%. The firm’s revenue was up .7% on a year-over-year basis. During the same period in the previous year, the company posted $0.86 EPS. research analysts predict that Cincinnati Financial will post 2.65 EPS for the current year.

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Truepoint Inc. raised its holdings in shares of Cincinnati Financial by 7,395.5% during the 3rd quarter. Truepoint Inc. now owns 1,954,901 shares of the insurance provider’s stock worth $1,955,000 after acquiring an additional 1,928,820 shares in the last quarter. Janus Henderson Group PLC raised its holdings in shares of Cincinnati Financial by 4,980.7% during the 2nd quarter. Janus Henderson Group PLC now owns 1,023,094 shares of the insurance provider’s stock worth $74,123,000 after acquiring an additional 1,002,957 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Cincinnati Financial by 2.4% during the 2nd quarter. Vanguard Group Inc. now owns 17,010,783 shares of the insurance provider’s stock worth $1,232,431,000 after acquiring an additional 392,312 shares in the last quarter. Fairpointe Capital LLC raised its holdings in shares of Cincinnati Financial by 72.3% during the 2nd quarter. Fairpointe Capital LLC now owns 811,439 shares of the insurance provider’s stock worth $58,789,000 after acquiring an additional 340,373 shares in the last quarter. Finally, Renaissance Technologies LLC raised its holdings in shares of Cincinnati Financial by 118.1% during the 2nd quarter. Renaissance Technologies LLC now owns 375,000 shares of the insurance provider’s stock worth $27,169,000 after acquiring an additional 203,055 shares in the last quarter. 64.44% of the stock is currently owned by institutional investors.

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About Cincinnati Financial

Cincinnati Financial Corporation is an insurance holding company. It operates through five segments: Commercial lines insurance, Personal lines insurance, Excess and surplus lines insurance, and Life insurance and Investments. Its Commercial Lines Insurance Segment provides five commercial business lines: commercial casualty, commercial property, commercial auto, workers’ compensation and other commercial lines.

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