Chubb (NYSE:CB) Sets New 12-Month High After Analyst Upgrade

Chubb Limited (NYSE:CB)’s stock price hit a new 52-week high during trading on Tuesday after Raymond James Financial raised their price target on the stock from $340.00 to $380.00. Raymond James Financial currently has a strong-buy rating on the stock. Chubb traded as high as $335.59 and last traded at $326.25, with a volume of 2205797 shares trading hands. The stock had previously closed at $330.97.

Other research analysts have also issued reports about the stock. Bank of America dropped their price target on shares of Chubb from $279.00 to $259.00 and set an “underperform” rating on the stock in a research note on Friday, January 16th. BMO Capital Markets reiterated a “market perform” rating and set a $283.00 target price on shares of Chubb in a research report on Thursday, October 23rd. UBS Group raised their price target on Chubb from $292.00 to $298.00 and gave the company a “neutral” rating in a report on Monday, October 27th. Wolfe Research upped their price objective on Chubb from $364.00 to $372.00 and gave the stock an “outperform” rating in a report on Thursday, February 5th. Finally, Deutsche Bank Aktiengesellschaft increased their price objective on Chubb from $303.00 to $304.00 and gave the stock a “hold” rating in a research report on Monday, November 24th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $338.14.

Insider Transactions at Chubb

In other Chubb news, insider John J. Lupica sold 16,375 shares of the company’s stock in a transaction on Friday, November 14th. The stock was sold at an average price of $296.45, for a total value of $4,854,368.75. Following the sale, the insider owned 74,225 shares of the company’s stock, valued at approximately $22,004,001.25. This represents a 18.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Timothy Alan Boroughs sold 850 shares of Chubb stock in a transaction on Monday, November 24th. The stock was sold at an average price of $295.19, for a total value of $250,911.50. Following the transaction, the executive vice president directly owned 1,585 shares of the company’s stock, valued at $467,876.15. This trade represents a 34.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 48,695 shares of company stock valued at $14,962,673 in the last three months. 0.86% of the stock is owned by company insiders.

Chubb News Summary

Here are the key news stories impacting Chubb this week:

• Positive Sentiment: Raymond James raised its price target from $340 to $380 and assigned a “strong-buy,” signaling meaningful upside relative to current levels; this is likely supporting buying interest. Raymond James Price Target Raise
• Positive Sentiment: Multiple broker notes have lifted price targets in recent sessions (examples include raises to $357, $333, $372 and $336), which collectively increase analyst-implied valuation and provide upward pressure on the share price. Price Target Raises
• Positive Sentiment: Independent commentary (The Motley Fool) is promoting Chubb as a safer/better insurance play versus higher-volatility peers, a narrative that can attract relative-value flows into CB. Fool: Buy This Instead
• Neutral Sentiment: Despite several target increases, the brokerage consensus rating remains a “Hold,” which could limit broad-based upgrades and temper further rallies until earnings/earnings guidance convinces more firms to move to Buy. Consensus Hold Report
• Negative Sentiment: Insider activity: CEO Evan G. Greenberg sold 15,060 shares on Feb 5 at an average $331.47 (~$5.0M). While his remaining stake is large, the sale is a short-term supply event and can be perceived negatively by some investors. SEC filing: Insider Sale Filing

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. CBIZ Investment Advisory Services LLC raised its position in shares of Chubb by 148.5% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 82 shares of the financial services provider’s stock valued at $26,000 after buying an additional 49 shares during the last quarter. Harbor Capital Advisors Inc. grew its stake in Chubb by 93.6% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 91 shares of the financial services provider’s stock worth $26,000 after acquiring an additional 44 shares during the period. Cedar Mountain Advisors LLC grew its stake in Chubb by 155.6% in the 3rd quarter. Cedar Mountain Advisors LLC now owns 92 shares of the financial services provider’s stock worth $26,000 after acquiring an additional 56 shares during the period. Laurel Wealth Advisors LLC purchased a new position in shares of Chubb during the 4th quarter worth $31,000. Finally, Ares Financial Consulting LLC purchased a new position in shares of Chubb during the 4th quarter worth $32,000. Institutional investors and hedge funds own 83.81% of the company’s stock.

Chubb Stock Down 1.4%

The firm has a market cap of $128.40 billion, a price-to-earnings ratio of 12.68, a PEG ratio of 2.12 and a beta of 0.49. The company has a quick ratio of 0.27, a current ratio of 0.24 and a debt-to-equity ratio of 0.20. The firm has a fifty day moving average price of $308.06 and a 200-day moving average price of $289.69.

Chubb (NYSE:CB) last released its earnings results on Tuesday, February 3rd. The financial services provider reported $7.52 earnings per share for the quarter, topping the consensus estimate of $6.33 by $1.19. Chubb had a return on equity of 13.15% and a net margin of 17.36%.The firm had revenue of $2.08 billion for the quarter, compared to the consensus estimate of $11.11 billion. During the same period in the prior year, the business posted $6.02 earnings per share. The firm’s revenue for the quarter was up 8.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Chubb Limited will post 21.52 EPS for the current year.

Chubb Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, January 2nd. Investors of record on Friday, December 12th were given a $0.97 dividend. The ex-dividend date of this dividend was Friday, December 12th. This represents a $3.88 annualized dividend and a dividend yield of 1.2%. Chubb’s dividend payout ratio (DPR) is currently 15.08%.

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.