David Osborn, a director at
Cincinnati Financial (CINF), recently bought 2,000 shares. The buy increased his position by 4%, and came to a total cost of $223,283.
He was joined by another director who bought 1,000 shares on the same day, paying $113,470, to increase their position by 2%. Insiders have been buyers in seven transactions over the past year. The last insider sale occurred last May.
Overall, Cincinnati Financial insiders own 1.5% of shares.
The insurance provider is up 13% in the past year, lagging the overall market by about 10 points.
However, Cincinnati Financial has had a great year operationally. Earnings have soared a massive 235%, and revenues are up 31%.
While customers are wary about large insurance increases over the past year, CINF has navigated the challenging environment well, and its investment portfolio has also provided a boost.
Shares now trade at about 8 times earnings.
Action to take: Cincinnati Financial has been trending higher since November, but have pulled back with markets in recent weeks. Given the earnings strength, investors may be interested here.
At current prices, CINF pays a 2.8% dividend.
For traders, shares look likely to resume their longer-term uptrend in the coming weeks.
The September $125 calls, last trading for about $3.15, could leverage a bounce higher into mid-double-digit returns.
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 company mentioned in this article.
