Chubb (CB) Receives “Buy” Rating from Wells Fargo & Co
Wells Fargo & Co restated their buy rating on shares of Chubb (NYSE:CB) in a research note published on Wednesday. Wells Fargo & Co currently has a $169.00 price objective on the financial services provider’s stock.
“We believe the losses exceeded consensus due to CB’s exposure to international events (the only other company under coverage that could also see losses from international events, and could potentially preview cat losses, is AIG). Following this announcement, we are lowering our Q3 2018 EPS estimate from $2.46 to $2.41 and we are lowering our 2018 EPS estimate from $10.10 to $10.06. 2020 estimates are unchanged at $11.15 and $11.95, respectively. We are maintaining our Outperform rating and $169 price target. The CB shares are down 1% (in-line with the S&P) as the insurance group is trading lower in anticipation of Michael making landfall today (for context CB has about a 1.8% share of the hurricane-exposed lines in Florida).”,” the firm’s analyst wrote.
A number of other equities analysts have also recently issued reports on CB. Zacks Investment Research cut Chubb from a hold rating to a sell rating in a report on Tuesday, June 26th. Citigroup lowered their target price on Chubb from $157.00 to $151.00 and set a buy rating for the company in a report on Thursday, July 12th. Atlantic Securities upgraded Chubb from an underweight rating to a neutral rating in a report on Wednesday, June 27th. ValuEngine upgraded Chubb from a sell rating to a hold rating in a report on Thursday, August 2nd. Finally, Barclays lowered their target price on Chubb from $175.00 to $170.00 and set an overweight rating for the company in a report on Monday, July 9th. Two research analysts have rated the stock with a sell rating, five have issued a hold rating and eight have given a buy rating to the stock. The company presently has a consensus rating of Hold and a consensus target price of $159.45.
Chubb (NYSE:CB) last issued its quarterly earnings data on Tuesday, July 24th. The financial services provider reported $2.68 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $2.62 by $0.06. The business had revenue of $7.45 billion for the quarter, compared to the consensus estimate of $7.30 billion. Chubb had a return on equity of 7.41% and a net margin of 11.53%. The firm’s revenue was up 5.6% compared to the same quarter last year. During the same quarter last year, the business posted $2.50 EPS. On average, analysts expect that Chubb will post 10.41 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, October 12th. Stockholders of record on Friday, September 21st were issued a $0.73 dividend. This represents a $2.92 annualized dividend and a dividend yield of 2.31%. The ex-dividend date of this dividend was Thursday, September 20th. Chubb’s payout ratio is 36.36%.
In other news, insider Timothy Alan Boroughs sold 14,971 shares of the firm’s stock in a transaction dated Thursday, September 20th. The stock was sold at an average price of $139.37, for a total value of $2,086,508.27. Following the completion of the transaction, the insider now owns 202,794 shares in the company, valued at approximately $28,263,399.78. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Evan G. Greenberg sold 227,994 shares of the firm’s stock in a transaction dated Wednesday, September 19th. The shares were sold at an average price of $140.29, for a total value of $31,985,278.26. Following the completion of the transaction, the chief executive officer now owns 1,583,326 shares of the company’s stock, valued at approximately $222,124,804.54. The disclosure for this sale can be found here. Insiders sold a total of 243,093 shares of company stock valued at $34,089,733 in the last 90 days. 0.44% of the stock is owned by corporate insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Russell Investments Group Ltd. acquired a new stake in Chubb in the 2nd quarter valued at about $95,936,000. American Century Companies Inc. lifted its stake in Chubb by 12.3% in the 2nd quarter. American Century Companies Inc. now owns 4,610,946 shares of the financial services provider’s stock valued at $585,682,000 after purchasing an additional 504,768 shares during the last quarter. Massachusetts Financial Services Co. MA lifted its stake in Chubb by 3.7% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 13,848,022 shares of the financial services provider’s stock valued at $1,758,976,000 after purchasing an additional 488,028 shares during the last quarter. Amundi Pioneer Asset Management Inc. lifted its stake in Chubb by 250.1% in the 1st quarter. Amundi Pioneer Asset Management Inc. now owns 605,121 shares of the financial services provider’s stock valued at $82,763,000 after purchasing an additional 432,290 shares during the last quarter. Finally, Toronto Dominion Bank lifted its stake in Chubb by 111.8% in the 2nd quarter. Toronto Dominion Bank now owns 714,775 shares of the financial services provider’s stock valued at $90,780,000 after purchasing an additional 377,292 shares during the last quarter. Institutional investors own 85.75% of the company’s stock.
Chubb Company Profile
Chubb Limited, through its subsidiaries, provides insurance and reinsurance products worldwide. Its North America Commercial P&C Insurance segment offers commercial property, marine, general casualty, workers' compensation, package policies, and risk management; and professional lines, marine, construction, environmental, medical, cyber risk, and excess casualty, as well as group accident and health insurance to large, middle market, and small commercial businesses in the United States, Canada, and Bermuda.
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