Dirk Debbink, a director at Cincinnati Financial (CINF), recently bought 1,000 shares. The buy increased his stake by 2%, and came to a total cost of $157,188.
Debbink was also a buyer back in April for 1,000 shares, which cost just $113,470 at the time. Another company director also picked up shares in April. Another director sold a small position in July. Going further back company directors have been the sole insider traders, and buyers have exceeded sellers.
Overall, Cincinnati Financial insiders own 1.6% of shares.
The property and casualty insurance company has soared 53% over the past year, far outperforming the S&P 500.
Revenues have surged 83%, and the insurer’s profit margin has topped 25% on the back of a rising investment portfolio and low loan losses.
Meanwhile, CINF shares trade at 22 times forward earnings, a slight discount to the overall stock market, but on the pricier side for an insurance company.
Action to take: Investors may like shares as a long-term holding, as insurance companies tend to perform well over time. With shares near all-time highs, today’s buyers may want to build a partial stake and add to it on market pullbacks.
At current prices, Cincinnati Financial pays a 2.1% dividend.
For traders, with shares currently in an uptrend, investors can likely see further gains in the months ahead. The March 2025 $165 calls, last trading for about $4.60, could see mid-double-digit returns from a continued rally in the months ahead.
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.