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

Cincinnati Financial Corporation (NASDAQ:CINF)’s share price gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $147.10, but opened at $154.47. Cincinnati Financial shares last traded at $153.53, with a volume of 80,032 shares traded.

The insurance provider reported $1.97 EPS for the quarter, topping analysts’ consensus estimates of $1.39 by $0.58. Cincinnati Financial had a net margin of 15.59% and a return on equity of 7.14%. The company had revenue of $2.48 billion for the quarter, compared to analysts’ expectations of $2.80 billion. During the same quarter last year, the business earned $1.29 EPS. The firm’s revenue was up 15.5% compared to the same quarter last year.

Cincinnati Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 15th. Stockholders of record on Monday, June 23rd were given a dividend of $0.87 per share. This represents a $3.48 annualized dividend and a dividend yield of 2.33%. The ex-dividend date of this dividend was Monday, June 23rd. Cincinnati Financial’s payout ratio is currently 30.18%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. Keefe, Bruyette & Woods lifted their price objective on shares of Cincinnati Financial from $150.00 to $167.00 and gave the company an “outperform” rating in a research report on Wednesday, July 9th. Roth Capital lifted their price objective on shares of Cincinnati Financial from $160.00 to $175.00 and gave the company a “buy” rating in a research report on Tuesday. Finally, Wall Street Zen raised shares of Cincinnati Financial from a “sell” rating to a “hold” rating in a report on Thursday, April 17th. Two equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $159.20.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its stake in shares of Cincinnati Financial by 0.5% during the first quarter. Vanguard Group Inc. now owns 19,255,478 shares of the insurance provider’s stock valued at $2,844,419,000 after purchasing an additional 87,773 shares during the period. Charles Schwab Investment Management Inc. boosted its stake in shares of Cincinnati Financial by 6.0% during the first quarter. Charles Schwab Investment Management Inc. now owns 6,364,272 shares of the insurance provider’s stock valued at $940,130,000 after purchasing an additional 358,018 shares during the period. Geode Capital Management LLC boosted its stake in shares of Cincinnati Financial by 5.0% during the fourth quarter. Geode Capital Management LLC now owns 3,930,022 shares of the insurance provider’s stock valued at $563,323,000 after purchasing an additional 185,705 shares during the period. Invesco Ltd. boosted its stake in shares of Cincinnati Financial by 2.2% during the first quarter. Invesco Ltd. now owns 1,848,509 shares of the insurance provider’s stock valued at $273,062,000 after purchasing an additional 40,222 shares during the period. Finally, GQG Partners LLC purchased a new stake in shares of Cincinnati Financial during the first quarter valued at $270,005,000. 65.24% of the stock is owned by hedge funds and other institutional investors.

Cincinnati Financial Price Performance

The stock has a market capitalization of $23.38 billion, a PE ratio of 12.97, a price-to-earnings-growth ratio of 9.99 and a beta of 0.76. The company has a quick ratio of 0.29, a current ratio of 0.29 and a debt-to-equity ratio of 0.06. The stock’s 50 day moving average price is $147.99 and its 200-day moving average price is $142.81.

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.