Roth Capital Downgrades Earnings Outlook for Cincinnati Financial

Analysts at Roth Capital have revised their earnings estimates for Cincinnati Financial Co. (NASDAQ:CINF) for the first quarter of 2025. In a report published on February 12th, Roth Capital's analyst H. Fong lowered the expected earnings per share (EPS) from an earlier projection of $2.10 to just ($0.53) for Q1 2025. This significant decrease indicates a more pessimistic view of the company's financial prospects.

Currently, the consensus estimate for Cincinnati Financial's earnings in the full year stands at $6.33 per share. Additionally, Roth Capital has forecast earnings of $1.45 EPS for the second quarter of 2025, along with annual earnings of $5.15 EPS for the same year.

Recent Earnings Report

Cincinnati Financial recently released its earnings report on February 10th, where it reported an impressive earnings figure of $3.14 EPS, exceeding the analysts' expectations of $1.90 by $1.24. The company achieved a return on equity of 8.25% and a net margin of 25.26%, reflecting a solid financial performance during that period.

Analyst Opinions

In addition to Roth Capital's changes, other analysts have also provided their insights on Cincinnati Financial's stock. Piper Sandler raised their price target for the stock from $116.00 to $126.00, assigning it a "neutral" rating. Concurrently, Keefe, Bruyette & Woods hiked their target price from $180.00 to $182.00, maintaining an "outperform" rating. Additionally, Roth Mkm increased their price objective from $140.00 to $160.00, giving the stock a "buy" rating. Overall, one analyst has rated the stock as a hold, while five have given it a buy rating, resulting in an average rating of "Moderate Buy" and an average target price of $151.00, according to data from MarketBeat.

Cincinnati Financial Stock Performance

On the trading front, Cincinnati Financial's stock opened at $137.19 on the last Friday. The stock has a 50-day moving average of $142.47 and a 200-day moving average of $140.42. Cincinnati Financial boasts a market capitalization of $21.44 billion, a price-to-earnings (P/E) ratio of 7.05, and a P/E to growth (P/G) ratio of 2.42. The company has shown stable performance metrics with a current ratio of 0.31, a quick ratio of 0.31, and a debt-to-equity ratio of 0.06. Over the past year, the stock experienced a low of $109.93 and a high of $161.74.

Dividend Update

Recently, Cincinnati Financial announced a quarterly dividend of $0.87 per share, set to be paid on April 15th to stockholders who are on record as of March 24th. This marks an increase from the previous quarterly dividend of $0.81. This new dividend represents an annualized payout of $3.48, yielding 2.54%, with a dividend payout ratio of 23.97%.

Insider Transactions and Ownership

In other news, Cincinnati Financial's Director, Dirk J. Debbink, recently acquired 1,000 shares of the company's stock on December 3rd, at an average cost of $157.19 per share. This transaction totaled approximately $157,190 and increased his holdings to 54,500 shares valued at around $8,566,855. At present, insiders hold about 2.83% of the company's stock.

Institutional Investment Activity

Recent trading activity has seen several large institutional investors adjusting their positions in Cincinnati Financial's stock. For example, Migdal Insurance & Financial Holdings Ltd. made a new investment in the fourth quarter, while Legacy Investment Solutions LLC bought shares in the third quarter. Y.D. More Investments Ltd. significantly increased its stake by 121.8% in the fourth quarter, now holding 193 shares valued at approximately $28,000. Other institutional investors also acquired stakes during this time, and institutional ownership currently represents 65.24% of the company's total stock.

Company Overview

Cincinnati Financial Corporation, through its subsidiaries, offers property casualty insurance products within the United States. The company operates through various segments, including Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. Its Commercial Lines Insurance segment provides coverage for commercial casualty, property, auto, and workers' compensation.

Earnings, Stocks, Cincinnati