Assessing the Risk and Potential of Cincinnati Financial Corp.’s (CINF) Stock

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The stock of Cincinnati Financial Corp. (CINF) has gone down by -4.53% for the week, with a 3.87% rise in the past month and a 0.32% rise in the past quarter. The volatility ratio for the week is 2.41%, and the volatility levels for the past 30 days are 1.85% for CINF. The simple moving average for the past 20 days is 0.21% for CINF’s stock, with a 7.83% simple moving average for the past 200 days.

Is It Worth Investing in Cincinnati Financial Corp. (NASDAQ: CINF) Right Now?

The price-to-earnings ratio for Cincinnati Financial Corp. (NASDAQ: CINF) is above average at 8.01x. The 36-month beta value for CINF is also noteworthy at 0.66. There are mixed opinions on the stock, with 1 analysts rating it as a “buy,” 0 rating it as “overweight,” 5 rating it as “hold,” and 1 rating it as “sell.”

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The public float for CINF is 153.69M, and at present, short sellers hold a 1.51% of that float. The average trading volume of CINF on July 26, 2024 was 678.91K shares.

CINF) stock’s latest price update

Cincinnati Financial Corp. (NASDAQ: CINF) has seen a rise in its stock price by 0.22 in relation to its previous close of 120.03. However, the company has experienced a -4.53% decline in its stock price over the last five trading sessions. zacks.com reported 2024-07-25 that While the top- and bottom-line numbers for Cincinnati Financial (CINF) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Analysts’ Opinion of CINF

Many brokerage firms have already submitted their reports for CINF stocks, with Citigroup repeating the rating for CINF by listing it as a “Buy.” The predicted price for CINF in the upcoming period, according to Citigroup is $135 based on the research report published on June 28, 2024 of the current year 2024.

BMO Capital Markets, on the other hand, stated in their research note that they expect to see CINF reach a price target of $135, previously predicting the price at $125. The rating they have provided for CINF stocks is “Outperform” according to the report published on March 25th, 2024.

CINF Trading at 2.23% from the 50-Day Moving Average

After a stumble in the market that brought CINF to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -6.18% of loss for the given period.

Volatility was left at 1.85%, however, over the last 30 days, the volatility rate increased by 2.41%, as shares surge +4.66% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +1.66% upper at present.

During the last 5 trading sessions, CINF fell by -4.53%, which changed the moving average for the period of 200-days by +19.99% in comparison to the 20-day moving average, which settled at $120.31. In addition, Cincinnati Financial Corp. saw 16.28% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at CINF starting from Osborn David P, who purchase 2,000 shares at the price of $111.64 back on Apr 29 ’24. After this action, Osborn David P now owns 33,919 shares of Cincinnati Financial Corp., valued at $223,283 using the latest closing price.

Debbink Dirk J, the Director of Cincinnati Financial Corp., purchase 1,000 shares at $113.47 during a trade that took place back on Apr 29 ’24, which means that Debbink Dirk J is holding 53,988 shares at $113,470 based on the most recent closing price.

Stock Fundamentals for CINF

Current profitability levels for the company are sitting at:

  • 0.28 for the present operating margin
  • 1.0 for the gross margin

The net margin for Cincinnati Financial Corp. stands at 0.22. The total capital return value is set at 0.12. Equity return is now at value 20.29, with 7.56 for asset returns.

Based on Cincinnati Financial Corp. (CINF), the company’s capital structure generated 0.06 points at debt to capital in total, while cash flow to debt ratio is standing at 2.47. The debt to equity ratio resting at 0.07. The interest coverage ratio of the stock is 55.83.

Currently, EBITDA for the company is 2.28 billion with net debt to EBITDA at 0.08. When we switch over and look at the enterprise to sales, we see a ratio of 1.78. The receivables turnover for the company is 2.87for trailing twelve months and the total asset turnover is 0.32. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.54.

Conclusion

In summary, Cincinnati Financial Corp. (CINF) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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