Insider Activity Report: Cincinnati Financial (CINF)

Dirk Debbnik, a director at Cincinnati Financial (CINF), recently bought 1,000 shares. The buy increased his stake by about 2 percent, and came to a total cost of $98,781.

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  • That buy comes about six weeks after another director also bought 1,000 shares. Company insiders have generally been buyers this year, with just one sale. Over the past two years, a similar number of consistent director buys far outpacing sales has been the case.

    Overall, company insiders own about 1.6 percent of shares.

    The insurance company is trading flat over the past year. Rising interest rates are impacting the company’s investment portfolio, even as revenues for CINF are up nearly 30 percent.

    Changing portfolio valuations have led to some current write-offs, which have pushed the stock’s valuation down to about 10 times earnings, down from 28 times last year.

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  • Action to take: Investors may like shares at current prices, as the recent drop in price has pushed the dividend up to a 3 percent yield. The dividend has a history of growth over time.

    For traders, the March 2024 $105 calls, last going for about $3.60, could see mid-double-digit returns on a year-end market rally that takes shares higher.

    Traders should look to take profits as any upcoming swing higher in shares starts to fade.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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