Insider Activity Report: Cincinnati Financial (CINF)

Nancy Benacci, a director at Cincinnati Financial (CINF), recently added 1,000 shares. The buy increased her stake by 28 percent, and came to a total cost of $106,570.

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  • That marks the first insider activity since June, when another director bought 500 shares at a cost just over $48,500. Over the past two years, company directors have been the only active insiders, with two sales and 12 buys.

    Overall, company insiders own 1.6 percent of shares.

    The property and casualty insurance company is up 8 percent this year, lagging the 14 percent return in the S&P 500.

    While rising interest rates are weighing on valuations in the insurance company’s portfolio, the company’s revenues have seen a 220 percent jump amid a consistent lack of earnings. However, over time, insurance companies tend to offer steadier returns than other financial companies such as banks.

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  • Cincinnati Financial shares trade at 17 times forward earnings, and the stock is trending higher.

    Action to take: Investors may like shares at current prices or on any drop from here given its trend higher. Shares also yield about 2.8 percent at current prices, and the company has a history of increasing its dividends.

    For traders, the December $115 calls, last going for about $2.25, could see mid-to-high double-digit gains in the coming months, especially if the current rally in shares continues.


    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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