CINF stock: buy or sell?
January 24th, 2020
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?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Currently, Cincinnati Financial stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Cincinnati Financial stock a buy?
Banks and financial institutions publish stock ratings everyday.At Stocks2.com, we collected 4 ratings published for CINF stock in the last month.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-8-1||Royal Bank of Canada||n/a||Sector Perform|
|2019-5-17||Credit Suisse Group||Neutral||Outperform|
|2019-2-27||Credit Suisse Group||Underperform||Neutral|
CINF stock analysis
Cincinnati Financial stayed stable a tight 0.04% and closed at $106.02.
Cincinnati Financial shares stayed stable 0.04% to $106.02 on January/24. Since price and SMA200d lines crossed up on January 9th, CINF climbed $2.92 (2.83%). From a daily outlook perspective, CINF is drawing an uptrend of rising tops and rising bottoms. Since its last top on Tuesday at $107.67, price slid and bounced up back from $105.14. Breaking down under $105.14 would cancel the current uptrend and it might slide further to test lower supports. Note that $107.67 might act as a resistance line. If Cincinnati Financial breakouts over $107.67 with average or higher volume, this would be a clear signal that the uptrend resumes. On October, CINF hit new all time highs, pushing higher previous ATH of $116.98 recorded on October. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Cincinnati Financial shares declined -1.20% this week, ending at $106.02.
This week, Cincinnati Financial stock lost the significant level of the 40-weeks moving average. Trading stocks that are under the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support. Far behind is the all-time high Cincinnati Financial marked early October but price is just -9.82% below that top.
CINF stock price history
CINF IPO was on March 17th, 1980 at $0.00 per share1. Since then, CINF stock surged a inf%, with an average of inf% per year. If you had invested right after CINF's IPO a $1,000 in CINF stock in 1980, it would worth $inf today.
1: Adjusted price after possible price splits or reverse-splits.
CINF stock historical price chart
CINF stock reached all-time highs on October with a price of $117.56.
CINF stock price target is $105.00Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. 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 30 days we found 3 price targets for CINF stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-12||Buckingham Research||Raises Target||$92.00||$100.00||8.7%|
|2019-8-1||Royal Bank of Canada||Raises Target||n/a||$105.00||-|
|2019-5-17||Credit Suisse Group||Upgrades||$90.00||$110.00||22.2%|
Financials and fundamental analysis
Earnings date and Earnings per ShareCincinnati Financial presented wonderful results for 2018-Q4 on February. Cincinnati Financial boosted Earnings per Share (EPS) by 22.50%, beating experts estimates of $0.80. Cincinnati Financial posted $0.98.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual revenues report draw a fatal correction of -5.67% to $5,407.00 M dollars. Nonetheless, its earnings margin (compared to sales) collapsed to 5.31%, that is $287.00 million.
|2013||$4,530 M||-||$517 M11.4%||-|
|2014||$4,945 M||9.16%||$525 M10.6%||1.55%|
|2015||$5,142 M||3.98%||$634 M12.3%||20.76%|
|2016||$5,449 M||5.97%||$591 M10.8%||-6.78%|
|2017||$5,732 M||5.19%||$1,045 M18.2%||76.82%|
|2018||$5,407 M||-5.67%||$287 M5.3%||-72.54%|
Quarterly financial resultsCincinnati Financial reported $710.00 million in sales for 2018-Q4, a -62.92% decline compared to previous quarter. Reported quarter income marked $-452.00 million with a profit margin of -63.66%. Profit margin plummed 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 drop down and plunged a -49.68%.
|2017-Q2||$1,400 M||-||$100 M7.1%||-|
|2017-Q3||$1,410 M||0.71%||$102 M7.2%||2.00%|
|2017-Q4||$1,411 M||0.07%||$642 M45.5%||529.41%|
|2018-Q1||$1,224 M||-13.25%||$-31 M-2.5%||-104.83%|
|2018-Q2||$1,558 M||27.29%||$217 M13.9%||-800.00%|
|2018-Q3||$1,915 M||22.91%||$553 M28.9%||154.84%|
|2018-Q4||$710 M||-62.92%||$-452 M-63.7%||-181.74%|
|2019-Q1||$2,159 M||204.08%||$695 M32.2%||-253.76%|
Cincinnati Financial ownershipWhen you are planning to buy shares of a stock, it's always worth to have a look its ownership structure.
Cincinnati Financial shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 6.57% of all shares.
In case of Cincinnati Financial stock, 65.05% 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.
For a better understanding, the next table shows ownership data compared to other related stocks:
|Market cap||$17.3 B|
|Total shares||163.4 M|
|Float shares||159.5 M|
|- Institutional holdings (%)||65.0%|
|- Insider holdings (%)||6.6%|
|Shares in short selling||0.0%|
|Friday, January 24th, 2020|
|Day range||$105.55 - $106.51|
|Average true range||$1.40|
|50d mov avg||$105.38|
|100d mov avg||$109.16|
|200d mov avg||$104.95|
Cincinnati Financial performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Cincinnati Financial against in the following table: