According to Zacks, “Chubb’s exposure to cat loss and a low interest rate environment are headwinds. Rising expenses and eroding margins are concerns. Nonetheless, it stands a good chance of taking leadership in the P&C space benefiting from complementary products and services. It’s inorganic growth story seems impressive and should help it achieve higher long-term ROE. A strong capital position helps Chubb to engage in shareholder friendly moves and invest in strategic initiatives that drive growth. Recently, Chubb’s unit, ESIS, introduced three new industry practices that will offer a better and superior level of expertise to the clients and drive excellent claim outcomes. It stays focused on reviewing underwriting actions in portfolios that do not meet its risk appetite and lower net premium and hence will either terminate or re-insure to improve risk/reward profile. Chubb expects third quarter investment income between $820-830 million.”
CB has been the topic of a number of other research reports. Atlantic Securities downgraded Chubb Corp. from a neutral rating to an underweight rating and set a $115.00 price objective on the stock. in a research report on Thursday, June 16th. Credit Suisse Group AG set a $136.00 price objective on Chubb Corp. and gave the stock a buy rating in a research report on Monday, September 12th. Citigroup Inc. reissued a neutral rating on shares of Chubb Corp. in a research note on Tuesday, June 21st. BMO Capital Markets cut Chubb Corp. from an outperform rating to a market perform rating and set a $136.00 target price for the company. in a research note on Monday, July 11th. They noted that the move was a valuation call. Finally, MKM Partners reissued a buy rating and set a $150.00 target price (up previously from $140.00) on shares of Chubb Corp. in a research note on Friday, July 15th. Two analysts have rated the stock with a sell rating, three have assigned a hold rating and eleven have assigned a buy rating to the stock. The company currently has an average rating of Buy and an average target price of $131.67.
Shares of Chubb Corp. (NYSE:CB) opened at 124.21 on Wednesday. Chubb Corp. has a 52 week low of $102.93 and a 52 week high of $131.00. The company’s 50 day moving average price is $126.00 and its 200-day moving average price is $124.75. The stock has a market capitalization of $57.77 billion, a PE ratio of 20.57 and a beta of 1.02.
Chubb Corp. (NYSE:CB) last announced its quarterly earnings data on Tuesday, July 26th. The company reported $2.25 EPS for the quarter, missing the Zacks’ consensus estimate of $2.45 by $0.20. Chubb Corp. had a return on equity of 9.92% and a net margin of 9.35%. The company had revenue of $7.64 billion for the quarter, compared to analysts’ expectations of $7.40 billion. During the same quarter in the previous year, the business posted $2.08 EPS. The business’s quarterly revenue was up 59.7% compared to the same quarter last year. Equities research analysts predict that Chubb Corp. will post $9.53 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, October 21st. Investors of record on Friday, September 30th will be issued a $0.69 dividend. The ex-dividend date is Wednesday, September 28th. This represents a $2.76 dividend on an annualized basis and a yield of 2.22%. Chubb Corp.’s dividend payout ratio (DPR) is presently 44.37%.
In related news, Director Robert W. Scully bought 10,725 shares of the firm’s stock in a transaction that occurred on Wednesday, August 3rd. The stock was purchased at an average cost of $125.95 per share, for a total transaction of $1,350,813.75. Following the completion of the acquisition, the director now owns 5,779 shares in the company, valued at approximately $727,865.05. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Sean Ringsted sold 15,570 shares of Chubb Corp. stock in a transaction on Tuesday, August 2nd. The shares were sold at an average price of $125.00, for a total value of $1,946,250.00. Following the completion of the transaction, the executive vice president now owns 169,762 shares of the company’s stock, valued at $21,220,250. The disclosure for this sale can be found here. 0.43% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CB. Wellington Management Group LLP raised its position in Chubb Corp. by 1,144.2% in the first quarter. Wellington Management Group LLP now owns 32,841,412 shares of the company’s stock worth $3,913,055,000 after buying an additional 30,201,897 shares during the period. JPMorgan Chase & Co. raised its position in Chubb Corp. by 269.4% in the first quarter. JPMorgan Chase & Co. now owns 20,089,163 shares of the company’s stock worth $2,393,625,000 after buying an additional 14,651,182 shares during the period. BlackRock Institutional Trust Company N.A. raised its position in Chubb Corp. by 93.2% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 11,974,022 shares of the company’s stock worth $1,426,705,000 after buying an additional 5,775,509 shares during the period. TIAA CREF Investment Management LLC raised its position in Chubb Corp. by 714.0% in the first quarter. TIAA CREF Investment Management LLC now owns 4,707,058 shares of the company’s stock worth $560,846,000 after buying an additional 4,128,821 shares during the period. Finally, BlackRock Fund Advisors raised its position in Chubb Corp. by 81.1% in the first quarter. BlackRock Fund Advisors now owns 6,175,979 shares of the company’s stock worth $735,868,000 after buying an additional 2,765,449 shares during the period. Hedge funds and other institutional investors own 87.25% of the company’s stock.
About Chubb Corp.
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