Strength Seen in Cninsure (CISG): Stock Moves 13% Higher – Tale of the Tape

January 6, 2015 Technicals 0

Zacks

Cninsure Inc. (CISG) was a big mover last session, with shares rising almost 13% on the day. The upside was a result of Kingsford Resources Limited – a company owned by certain members of management of CNinsure – entering into a share purchase and sale agreement with CDH Inservice Limited, to buy 7,731,149 American Depositary Shares or its equivalent in ordinary shares of the company from the latter, for US$54.1 million. This development led to far more shares changing hands yesterday than in a normal session. The move breaks the recent trend of the company as the stock is now trading above the past one month’s volatile price range of $5.89 to $7.11.

This insurance broker has not seen any estimate revision in the last 30 days. The Zacks Consensus Estimate has also remained unchanged over the same period. Yesterday’s rally is encouraging though, so make sure to keep a close watch on this stock in the near future.

Cninsure currently has a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.

A better-ranked stock in the financial sector is Marsh & McLennan Companies, Inc. (MMC), with a Zacks Rank #2 (Buy).

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