Chubb (NYSE:CB) Sees Large Volume Increase After Better-Than-Expected Earnings

Shares of Chubb Limited (NYSE:CB) saw an uptick in trading volume on Wednesday following a better than expected earnings announcement. 1,282,306 shares changed hands during mid-day trading, a decline of 25% from the previous session’s volume of 1,717,698 shares.The stock last traded at $342.8860 and had previously closed at $354.80.

The financial services provider reported $7.26 EPS for the quarter, beating the consensus estimate of $6.78 by $0.48. The company had revenue of $14.71 billion during the quarter, compared to analyst estimates of $15.07 billion. Chubb had a return on equity of 14.55% and a net margin of 18.10%.The business’s revenue was up 3.6% compared to the same quarter last year. During the same period in the prior year, the company earned $6.14 earnings per share.

Chubb Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Friday, June 12th were given a dividend of $1.02 per share. The ex-dividend date was Friday, June 12th. This represents a $4.08 dividend on an annualized basis and a yield of 1.2%. This is an increase from Chubb’s previous quarterly dividend of $0.97. Chubb’s payout ratio is presently 14.41%.

Key Headlines Impacting Chubb

Here are the key news stories impacting Chubb this week:

• Positive Sentiment: Chubb beat Q2 EPS estimates, reporting core operating income of $7.26 per share versus expectations, with earnings up sharply from a year ago. Article Title
• Positive Sentiment: Underwriting remained strong, with the P&C combined ratio at 83.8%, catastrophe losses easing, and record investment income helping support results. Article Title
• Positive Sentiment: Several Wall Street firms turned constructive, including Citizens JMP reaffirming an outperform rating with a $400 target and JPMorgan lifting its target to $370, signaling meaningful upside from current levels. Article Title
• Neutral Sentiment: Some analysts still flagged softer property-casualty market conditions and weakness in major account premiums, which could temper near-term growth expectations. Article Title
• Negative Sentiment: Revenue came in below consensus, and the market appears to be focusing more on slower premium growth than on the earnings beat, contributing to the stock’s pullback. Article Title

Analyst Ratings Changes

Several equities research analysts have weighed in on CB shares. Wells Fargo & Company increased their target price on Chubb from $333.00 to $358.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 9th. Mizuho boosted their price target on shares of Chubb from $335.00 to $352.00 and gave the company a “neutral” rating in a report on Thursday, July 9th. UBS Group upped their price target on shares of Chubb from $340.00 to $369.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 8th. Citizens Jmp reaffirmed a “market outperform” rating and issued a $400.00 price objective on shares of Chubb in a report on Wednesday. Finally, Jefferies Financial Group cut their price objective on shares of Chubb from $356.00 to $352.00 and set a “hold” rating on the stock in a research report on Thursday, April 23rd. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Chubb currently has an average rating of “Hold” and an average target price of $360.18.

Insider Buying and Selling

In other Chubb news, COO John W. Keogh sold 23,000 shares of the company’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $321.51, for a total value of $7,394,730.00. Following the completion of the sale, the chief operating officer directly owned 203,322 shares of the company’s stock, valued at approximately $65,370,056.22. This represents a 10.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.37% of the company’s stock.

Institutional Trading of Chubb

A number of hedge funds and other institutional investors have recently made changes to their positions in CB. Berkshire Hathaway Inc grew its position in Chubb by 9.3% in the fourth quarter. Berkshire Hathaway Inc now owns 34,249,183 shares of the financial services provider’s stock worth $10,689,855,000 after buying an additional 2,916,288 shares during the last quarter. State Street Corp lifted its position in shares of Chubb by 0.4% during the 3rd quarter. State Street Corp now owns 17,045,793 shares of the financial services provider’s stock valued at $4,827,852,000 after acquiring an additional 68,553 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Chubb by 25.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 14,947,799 shares of the financial services provider’s stock valued at $4,665,508,000 after acquiring an additional 3,049,987 shares during the last quarter. GQG Partners LLC boosted its stake in shares of Chubb by 15.2% during the 4th quarter. GQG Partners LLC now owns 12,481,176 shares of the financial services provider’s stock worth $3,895,627,000 after acquiring an additional 1,647,729 shares in the last quarter. Finally, Bank of America Corp DE boosted its stake in shares of Chubb by 11.6% during the 2nd quarter. Bank of America Corp DE now owns 4,929,858 shares of the financial services provider’s stock worth $1,428,278,000 after acquiring an additional 513,852 shares in the last quarter. 83.81% of the stock is currently owned by institutional investors.

Chubb Stock Down 3.2%

The company has a current ratio of 0.28, a quick ratio of 0.28 and a debt-to-equity ratio of 0.20. The firm has a market capitalization of $133.20 billion, a price-to-earnings ratio of 12.15, a PEG ratio of 1.84 and a beta of 0.40. The stock has a fifty day moving average of $334.18 and a 200-day moving average of $326.56.

Chubb Company Profile

Chubb is a global property and casualty insurance company that underwrites a broad range of commercial and personal insurance products and related services. Its offerings include commercial property and casualty coverage, specialty liability, professional and management liability, cyber and technology insurance, marine and energy, surety, accident and health solutions, and high-net-worth personal lines such as homeowners, auto and valuables protection. Chubb serves businesses, individuals and institutions with tailored underwriting and risk-transfer solutions across multiple industry sectors.

In addition to core underwriting, Chubb provides risk engineering, loss control, claims management and risk consulting services intended to reduce loss severity and help clients manage exposures.