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 research note issued to investors on Wednesday. The firm presently has a $85.00 price objective on the insurance provider’s stock. Zacks Investment Research‘s price target points to a potential upside of 9.96% from the company’s previous close.

According to Zacks, “Shares of Cincinnati Financial have outperformed the industry in a year. The company’s low leverage, ample capital, consistent cash flow generation, favorable reserve release, share repurchases and steady dividend hikes should drive growth. Management is appointing agencies and expanding product offerings to ramp up its business profile. Net investment income growth is expected in the near term, driven by rising interest rates. The company has replaced its existing catastrophe bond program with a new collateralized reinsurance to mitigate the loss. However, exposure to cat loss and a persistent turmoil in group benefits associated with the ACA are headwinds. Higher expenses might also weigh on the desired margin expansion. A Zacks Rank #2 and Earnings ESP of 0.00% makes surprise prediction inconclusive as it reports fourth quarter results on Feb 6.”

Several other analysts have also recently issued reports on the stock. BidaskClub cut shares of Cincinnati Financial from a “strong-buy” rating to a “buy” rating in a research note on Wednesday. ValuEngine raised shares of Cincinnati Financial from a “hold” rating to a “buy” rating in a research note on Tuesday, October 9th. Finally, Buckingham Research initiated coverage on shares of Cincinnati Financial in a research note on Friday, December 14th. They set a “neutral” rating and a $80.00 price objective for the company. One analyst has rated the stock with a sell rating, five have assigned a hold rating and two have issued a buy rating to the company. Cincinnati Financial has a consensus rating of “Hold” and an average price target of $78.33.

CINF stock opened at $77.30 on Wednesday. The stock has a market cap of $12.41 billion, a PE ratio of 28.21 and a beta of 0.68. The company has a debt-to-equity ratio of 0.10, a current ratio of 0.27 and a quick ratio of 0.27. Cincinnati Financial has a 52 week low of $66.33 and a 52 week high of $82.86.

Cincinnati Financial (NASDAQ:CINF) last released its earnings results on Thursday, October 25th. The insurance provider reported $0.84 EPS for the quarter, topping analysts’ consensus estimates of $0.75 by $0.09. The business had revenue of $1.46 billion during the quarter, compared to analysts’ expectations of $1.49 billion. Cincinnati Financial had a net margin of 22.61% and a return on equity of 6.70%. As a group, equities analysts anticipate that Cincinnati Financial will post 3.08 EPS for the current fiscal year.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of Montreal Can grew its stake in Cincinnati Financial by 33.0% during the 3rd quarter. Bank of Montreal Can now owns 300,621 shares of the insurance provider’s stock valued at $23,091,000 after acquiring an additional 74,534 shares in the last quarter. American International Group Inc. boosted its holdings in Cincinnati Financial by 6.5% in the 3rd quarter. American International Group Inc. now owns 67,432 shares of the insurance provider’s stock valued at $5,179,000 after purchasing an additional 4,098 shares during the last quarter. Laurion Capital Management LP acquired a new position in Cincinnati Financial in the 2nd quarter valued at about $255,000. Iberiabank Corp boosted its holdings in Cincinnati Financial by 43.1% in the 3rd quarter. Iberiabank Corp now owns 79,013 shares of the insurance provider’s stock valued at $6,069,000 after purchasing an additional 23,789 shares during the last quarter. Finally, Mather Group LLC. boosted its holdings in Cincinnati Financial by 66.5% in the 3rd quarter. Mather Group LLC. now owns 27,661 shares of the insurance provider’s stock valued at $2,125,000 after purchasing an additional 11,052 shares during the last quarter. 63.16% of the stock is owned by institutional investors.

About Cincinnati Financial

Cincinnati Financial Corporation provides property casualty insurance products in the United States. The company operates in five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The Commercial Lines Insurance segment provides coverage for commercial casualty, commercial property, commercial auto, and workers' compensation.

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