Chubb (NYSE:CB) to Repurchase $2.50 billion in Outstanding Shares

Chubb (NYSE:CBGet Rating) announced that its Board of Directors has approved a stock buyback program on Thursday, May 19th, RTT News reports. The company plans to buyback $2.50 billion in outstanding shares. This buyback authorization permits the financial services provider to buy up to 2.8% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Shares of NYSE:CB traded up $0.84 during trading hours on Tuesday, hitting $208.15. The stock had a trading volume of 1,219,423 shares, compared to its average volume of 1,910,520. The stock’s fifty day simple moving average is $210.53 and its 200 day simple moving average is $201.16. Chubb has a 1-year low of $155.78 and a 1-year high of $218.99. The firm has a market capitalization of $88.20 billion, a price-to-earnings ratio of 11.08, a PEG ratio of 1.37 and a beta of 0.73. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.31 and a current ratio of 0.31.

Chubb (NYSE:CBGet Rating) last announced its quarterly earnings results on Tuesday, April 26th. The financial services provider reported $3.82 EPS for the quarter, beating the consensus estimate of $3.48 by $0.34. Chubb had a net margin of 19.65% and a return on equity of 10.30%. During the same period last year, the company earned $2.52 EPS. As a group, research analysts anticipate that Chubb will post 14.92 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, July 8th. Shareholders of record on Friday, June 17th will be paid a $0.83 dividend. The ex-dividend date of this dividend is Thursday, June 16th. This represents a $3.32 annualized dividend and a dividend yield of 1.60%. This is a positive change from Chubb’s previous quarterly dividend of $0.80. Chubb’s dividend payout ratio (DPR) is presently 17.04%.

CB has been the topic of a number of recent research reports. Wells Fargo & Company upped their target price on Chubb from $230.00 to $240.00 and gave the company an “overweight” rating in a research note on Tuesday, April 12th. Argus upped their price objective on Chubb from $210.00 to $230.00 in a report on Thursday, February 10th. Raymond James increased their price target on Chubb from $240.00 to $250.00 in a report on Thursday, April 28th. Barclays lowered their price target on Chubb from $250.00 to $249.00 and set an “overweight” rating for the company in a report on Friday. Finally, StockNews.com started coverage on shares of Chubb in a research report on Thursday, March 31st. They issued a “hold” rating for the company. Five analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Buy” and an average price target of $220.44.

In related news, Director Theodore Shasta sold 461 shares of the firm’s stock in a transaction that occurred on Wednesday, March 9th. The shares were sold at an average price of $204.88, for a total transaction of $94,449.68. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider John J. Lupica sold 901 shares of the firm’s stock in a transaction that occurred on Wednesday, February 23rd. The shares were sold at an average price of $204.39, for a total transaction of $184,155.39. The disclosure for this sale can be found here. Insiders sold 69,493 shares of company stock worth $14,526,548 in the last 90 days. 0.39% of the stock is owned by company insiders.

Chubb Company Profile (Get Rating)

Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical, cyber risk, surety, and excess casualty; and group accident and health insurance to large, middle market, and small commercial businesses.

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