Cincinnati Financial (NASDAQ:CINF) Cut to Sell at Zacks Investment Research

Cincinnati Financial (NASDAQ:CINF) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday, April 11th.

According to Zacks, “Shares of Cincinnati Financial have underperformed the industry year to date. Exposure to cat loss and a continued turmoil in group benefits associated with the ACA are headwinds. Our proven model does not conclusively show that the company is likely to beat on earnings when it reports first quarter results on Apr 25. While a Zacks Rank # 4 decreases the predictive power of ESP, an Earnings ESP of 0.00% makes prediction difficult.  yet, 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 profile. Also, with the gradual improvement in interest rates, net investment income growth is expected in the near term. It has replaced its existing catastrophe bond program with a new collateralized reinsurance to mitigate the loss.”

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Other analysts have also recently issued reports about the company. BidaskClub raised Cincinnati Financial from a “hold” rating to a “buy” rating in a research report on Friday, March 30th. Royal Bank of Canada reissued a “hold” rating on shares of Cincinnati Financial in a research report on Thursday, February 8th. Finally, Langen Mcalenn reissued a “neutral” rating on shares of Cincinnati Financial in a research report on Tuesday, January 16th. One equities research analyst has rated the stock with a sell rating and four have assigned a hold rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $74.67.

Cincinnati Financial stock traded up $0.04 during trading hours on Wednesday, hitting $74.53. 150,046 shares of the stock traded hands, compared to its average volume of 598,216. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.28 and a current ratio of 0.28. The stock has a market cap of $12,264.06, a price-to-earnings ratio of 27.19 and a beta of 0.84. Cincinnati Financial has a one year low of $68.49 and a one year high of $81.98.

Cincinnati Financial (NASDAQ:CINF) last issued its quarterly earnings results on Wednesday, February 7th. The insurance provider reported $0.93 EPS for the quarter, topping analysts’ consensus estimates of $0.86 by $0.07. Cincinnati Financial had a return on equity of 5.99% and a net margin of 18.23%. The firm had revenue of $1.41 billion for the quarter, compared to analysts’ expectations of $1.42 billion. During the same period in the previous year, the firm posted $0.75 EPS. The business’s revenue for the quarter was up 7.5% compared to the same quarter last year. analysts predict that Cincinnati Financial will post 3.28 earnings per share for the current year.

In other Cincinnati Financial news, Director Douglas S. Skidmore acquired 650 shares of the stock in a transaction that occurred on Friday, February 9th. The shares were acquired at an average cost of $70.65 per share, with a total value of $45,922.50. The transaction was disclosed in a filing with the SEC, which is available at this link. Corporate insiders own 7.07% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in the stock. CIBC Asset Management Inc lifted its position in Cincinnati Financial by 4.7% in the 4th quarter. CIBC Asset Management Inc now owns 16,641 shares of the insurance provider’s stock valued at $1,248,000 after acquiring an additional 746 shares in the last quarter. Chevy Chase Trust Holdings Inc. raised its stake in Cincinnati Financial by 0.6% during the 3rd quarter. Chevy Chase Trust Holdings Inc. now owns 130,258 shares of the insurance provider’s stock valued at $9,973,000 after buying an additional 783 shares during the last quarter. Bollard Group LLC raised its stake in Cincinnati Financial by 2.1% during the 4th quarter. Bollard Group LLC now owns 39,218 shares of the insurance provider’s stock valued at $2,940,000 after buying an additional 790 shares during the last quarter. Norinchukin Bank The raised its stake in Cincinnati Financial by 9.4% during the 4th quarter. Norinchukin Bank The now owns 9,876 shares of the insurance provider’s stock valued at $740,000 after buying an additional 845 shares during the last quarter. Finally, OLD National Bancorp IN raised its stake in Cincinnati Financial by 11.0% during the 4th quarter. OLD National Bancorp IN now owns 8,833 shares of the insurance provider’s stock valued at $662,000 after buying an additional 878 shares during the last quarter. 63.26% of the stock is currently owned by institutional investors and hedge funds.

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Cincinnati Financial Company Profile

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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