CINF stock: buy or sell?

CINF stock price: $111.03 0.50% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

5

After reaching all time highs today, Cincinnati Financial stepped up 0.50% today to $111.03.

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.

Should I buy CINF stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups are elegible for Cincinnati Financial stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Cincinnati Financial stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 3 ratings published for CINF stock in the last 30 days.

Is CINF a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-1Royal Bank of Canadan/aSector Perform
2019-5-17Credit Suisse GroupNeutralOutperform
2019-2-27Credit Suisse GroupUnderperformNeutral

CINF stock analysis

Daily outlook

Cincinnati Financial shares stepped up 0.50% today and topped a new all time high at $111.32.

Cincinnati Financial stepped up 0.50% to $111.03 after marking all time highs today. On Aug/6 CINF price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock.

CINF stock chart (daily)

Weekly outlook

Cincinnati Financial shares grew 1.21% this week and reached a new all time high at $111.32.

CINF shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom early August, CINF climbed unceasignly breaking out to new all time highs. By mid October 2018 CINF price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Since early October 2018 when SMA20w and SMA40w crossed up, CINF price gained $35.65 per share (47.29%).

CINF stock chart (weekly)

CINF stock price history

CINF IPO was on March 17th, 1980 at $0.39 per share1. Since then, CINF stock surged a 28,369.20%, with a yearly average of 727.40%. If you had invested right after CINF's IPO a $1,000 in CINF stock in 1980, it would worth $283,692.00 today.

1: Adjusted price after possible price splits or reverse-splits.

CINF stock historical price chart

CINF stock reached all-time highs today with a price of $111.32.

CINF stock price target is $107.50

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' CINF stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 2 price targets for CINF stock:
CINF stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-1Royal Bank of CanadaRaises Targetn/a$105.00-
2019-5-17Credit Suisse GroupUpgrades$90.00$110.0022.2%
(in average)$90.00$107.5019.0%
Moving in a range from $110.00 and $105.00, the price forecast for Cincinnati Financial stock is $107.50. In average, analysts' outlook on CINF price target is positive, upgrading the forecast by a 19.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Cincinnati Financial reported phenomenal results for 2018-Q4 on February. Cincinnati Financial skyrocketed Earnings per Share (EPS) by 22.50%, beating analysts estimates of $0.80. Cincinnati Financial posted $0.98.
CINF earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.6n/a
2017-Q32017-10-260.520.5811.5%
2017-Q42018-02-070.860.938.1%
2018-Q12018-04-250.820.72-12.2%
2018-Q22018-07-260.540.8150.0%
2018-Q32018-10-250.750.8412.0%
2018-Q42019-02-060.80.9822.5%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw an awful drop down of -5.67% to $5,407.00 M USD. When comparing 2018 vs 2017, in contrary, profit margin (that is, the net income divided by revenues) plummed a -12.92% to 5.31%.

CINF annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$4,530 M-$517 M11.4%-
2014$4,945 M9.16%$525 M10.6%1.55%
2015$5,142 M3.98%$634 M12.3%20.76%
2016$5,449 M5.97%$591 M10.8%-6.78%
2017$5,732 M5.19%$1,045 M18.2%76.82%
2018$5,407 M-5.67%$287 M5.3%-72.54%

Quarterly financial results

Cincinnati Financial reported $710.00 million in revenues for 2018-Q4, a -62.92% decline compared to previous quarter. Reported quarter earnings marked $-452.00 M with a profit margin of -63.66%. Profit margin plunged a -92.54% compared to previous quarter when profit margin was 28.88%. When comparing sales to same quarter last year, Cincinnati Financial sales marked a dreadful correction and collapsed a -49.68%.
CINF quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,400 M-$100 M7.1%-
2017-Q3$1,410 M0.71%$102 M7.2%2.00%
2017-Q4$1,411 M0.07%$642 M45.5%529.41%
2018-Q1$1,224 M-13.25%$-31 M-2.5%-104.83%
2018-Q2$1,558 M27.29%$217 M13.9%-800.00%
2018-Q3$1,915 M22.91%$553 M28.9%154.84%
2018-Q4$710 M-62.92%$-452 M-63.7%-181.74%
2019-Q1$2,159 M204.08%$695 M32.2%-253.76%

Cincinnati Financial ownership

When you are planning to buy a company, it's always worth to check its ownership structure.

Cincinnati Financial shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 6.59% of all shares.

In case of Cincinnati Financial stock, 65.36% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for CINF stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Cincinnati Financial:

CINFAFGERIEHALLORI
Market cap$18.1 B$9.0 B$10.2 B$307.7 M$6.9 B
Total shares163.2 M88.9 M46.2 M18.1 M303.0 M
Float shares159.3 M72.1 M24.6 M13.0 M281.5 M
  - Institutional holdings (%)65.4%67.1%31.9%83.9%78.5%
  - Insider holdings (%)6.6%17.6%46.6%7.0%6.0%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

CINF summary

Thursday, August 22nd, 2019
Open$110.50
Close$111.03
Day range$109.84 - $111.32
Previous close$110.48
Session gain0.50%
Average true range$2.32
50d mov avg$106.76
100d mov avg$100.24
200d mov avg$90.23
Daily pattern
Weekly pattern lb03c

Cincinnati Financial performance

To measure stock performance is always good to benchmark with competitors or related stocks. For Cincinnati Financial, the comparison is made against American Financial, Erie Indemnity, Hallmark Financial Services, Old Republic International, Selective Insurance, The Travelers Companies and United Fire.
Stock3m6m12m
CINFCincinnati Financ...11.98%30.47%48.93%
AFGAmerican Financia...2.03%4.05%-4.77%
ERIEErie Indemnity10.66%26.31%78.22%
HALLHallmark Financia...42.45%62.49%53.25%
ORIOld Republic Inte...1.97%9.83%5.95%
SIGISelective Insuran...11.05%21.36%27.20%
TRVThe Travelers Com...0.43%14.07%15.90%
UFCSUnited Fire-3.02%-3.33%-7.54%

Cincinnati Financial competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Cincinnati Financial. We chose 7 companies as Cincinnati Financial competitors as they are in the same industry or have similar market objectives.