Cincinnati Financial (CINF) Cut to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Cincinnati Financial (NASDAQ:CINF) from a buy rating to a hold rating in a report issued on Monday morning.

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.  The company saw its 2018 estimate moving north in the last 60 days. However, 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. A Zacks Rank #3 and Earnings ESP of 2.92% makes us confident of a fourth quarter earnings beat of Feb 14.”

Separately, BidaskClub upgraded Cincinnati Financial from a strong sell rating to a sell rating in a research note on Saturday, December 30th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and one has given a buy rating to the stock. The stock has a consensus rating of Hold and an average price target of $78.50.

Shares of Cincinnati Financial (NASDAQ CINF) traded down $0.46 during mid-day trading on Monday, hitting $73.21. The stock had a trading volume of 679,548 shares, compared to its average volume of 476,957. Cincinnati Financial has a 1-year low of $68.24 and a 1-year high of $81.98. The stock has a market capitalization of $12,010.00, a price-to-earnings ratio of 24.16 and a beta of 0.93. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.29 and a quick ratio of 0.29.

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

The firm also recently declared a special dividend, which was paid on Friday, December 15th. Stockholders of record on Friday, December 1st were paid a dividend of $0.50 per share. This is a positive change from Cincinnati Financial’s previous special dividend of $0.46. The ex-dividend date of this dividend was Thursday, November 30th. This represents a dividend yield of 2.72%. Cincinnati Financial’s payout ratio is presently 66.01%.

Several hedge funds have recently modified their holdings of the company. Parametric Portfolio Associates LLC boosted its position in Cincinnati Financial by 6.8% in the third quarter. Parametric Portfolio Associates LLC now owns 405,219 shares of the insurance provider’s stock valued at $31,028,000 after buying an additional 25,954 shares during the last quarter. Truepoint Inc. boosted its position in Cincinnati Financial by 7,395.5% in the 3rd quarter. Truepoint Inc. now owns 1,954,901 shares of the insurance provider’s stock worth $1,955,000 after purchasing an additional 1,928,820 shares in the last quarter. Smith Shellnut Wilson LLC ADV purchased a new stake in Cincinnati Financial in the 3rd quarter worth approximately $324,000. Belpointe Asset Management LLC purchased a new stake in Cincinnati Financial in the 3rd quarter worth approximately $542,000. Finally, IFM Investors Pty Ltd purchased a new stake in Cincinnati Financial in the 3rd quarter worth approximately $395,000. Institutional investors and hedge funds own 64.44% of the company’s stock.

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Cincinnati Financial Company Profile

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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