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

Cincinnati Financial Co. (NASDAQ:CINF - Get Free Report) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $135.62, but opened at $141.51. Cincinnati Financial shares last traded at $141.53, with a volume of 106,702 shares trading hands.

The insurance provider reported $3.14 EPS for the quarter, topping analysts' consensus estimates of $1.90 by $1.24. Cincinnati Financial had a net margin of 25.26% and a return on equity of 8.25%.

Cincinnati Financial Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 15th. Shareholders of record on Monday, March 24th will be given a dividend of $0.87 per share. This represents a $3.48 dividend on an annualized basis and a yield of 2.54%. This is a boost from Cincinnati Financial's previous quarterly dividend of $0.81. The ex-dividend date of this dividend is Monday, March 24th. Cincinnati Financial's payout ratio is 16.65%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on CINF. Roth Mkm lifted their target price on Cincinnati Financial from $140.00 to $160.00 and gave the stock a "buy" rating in a report on Wednesday. Piper Sandler lifted their target price on Cincinnati Financial from $116.00 to $126.00 and gave the stock a "neutral" rating in a report on Tuesday, October 29th. Finally, Keefe, Bruyette & Woods lifted their target price on Cincinnati Financial from $180.00 to $182.00 and gave the stock an "outperform" rating in a report on Thursday. One research analyst has rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, Cincinnati Financial presently has a consensus rating of "Moderate Buy" and a consensus price target of $151.00.

Insider Activity at Cincinnati Financial

In related news, Director Dirk J. Debbink purchased 1,000 shares of the company's stock in a transaction that occurred on Tuesday, December 3rd. The stock was acquired at an average price of $157.19 per share, with a total value of $157,190.00. Following the completion of the purchase, the director now directly owns 54,500 shares in the company, valued at $8,566,855. This trade represents a 1.87 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 2.83% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its stake in Cincinnati Financial by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 19,167,705 shares of the insurance provider's stock worth $2,754,399,000 after acquiring an additional 173,417 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in Cincinnati Financial by 3.9% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 6,006,254 shares of the insurance provider's stock worth $863,099,000 after acquiring an additional 224,033 shares in the last quarter. Geode Capital Management LLC raised its stake in 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 worth $563,323,000 after acquiring an additional 185,705 shares in the last quarter. Norges Bank acquired a new position in Cincinnati Financial during the fourth quarter worth about $223,959,000. Finally, Dimensional Fund Advisors LP raised its stake in Cincinnati Financial by 2.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,415,742 shares of the insurance provider's stock worth $203,438,000 after acquiring an additional 34,810 shares in the last quarter. Institutional investors and hedge funds own 65.24% of the company's stock.

Cincinnati Financial Stock Performance

The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 0.06. The stock has a market cap of $21.40 billion, a price-to-earnings ratio of 7.03, a P/E/G ratio of 2.42 and a beta of 0.71. The company has a 50 day simple moving average of $142.07 and a 200 day simple moving average of $140.40.

Cincinnati Financial Company Profile

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.