Nancy Benacci, a director at Cincinnati Financial (CINF), recently bought 1,000 shares. The buy increased her stake by 15%, and came to a total cost of $136,160.
This marks the first insider buy of 2025. Over the past two years, insiders were mostly buyers of shares, although one company director with over 1.1 million shares has been lightening his position. There have been no trades from company executives over the past two years.
Overall, insiders at the property and casualty insurance company own 1.6% of shares.
Cincinnati Financial is up 23% over the past year, slightly outperforming the S&P 500. That’s in spite of a 24% decline in revenues, and a 65% slide in earnings growth, amid higher claims more than offsetting increased investment returns.
Even with that decline, shares trade at about 10 times earnings, and the insurer carries a low level of debt.
Action to take: Investors may want to consider a small position here, and to use any market weakness to accumulate further shares. Cincinnati Financial has an excellent long-term track record for buy-and-hold investors, particularly those buying for retirement accounts.
Plus, the company is a dividend growth play, with shares currently paying 2.5%.
For traders, shares are trending higher again after pulling back from their December peak. The May $155 calls, last trading for about $1.25, could see mid-double-digit gains or better in the coming months if the uptrend continues.
Disclosure: The author of this article has no position in the company mentioned here, but may to trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.