Zacks Investment Research lowered shares of Chubb Corp. (NYSE:CB) from a buy rating to a hold rating in a research note published on Monday.
According to Zacks, “Chubb stands a good chance of taking leadership in the P&C space benefiting from complementary products and services. Its 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. Notably, Chubb has raised its integration expense savings to $800 million, from the previous guidance of $750 million. However, the company’s exposure to cat loss (estimates $200 million cat loss in fourth quarter from Hurricane Matthew) and a low interest rate environment are headwinds. Rising expenses and eroding margins are concerns. With respect to quarterly results, Chubb’s third-quarter 2016 earnings outperformed the Zacks Consensus Estimate and also improved from the prior-year quarter, primarily driven by the growth in net premiums written, as well as net investment income.”
CB has been the topic of several other research reports. Goldman Sachs Group Inc. cut Chubb Corp. from a buy rating to a neutral rating and dropped their target price for the company from $140.00 to $133.00 in a research report on Tuesday, November 15th. Barclays PLC raised their price objective on Chubb Corp. from $133.00 to $139.00 and gave the stock an overweight rating in a research report on Friday, September 30th. 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. William Blair cut Chubb Corp. from a market perform rating to an underperform rating in a research report on Thursday, November 17th. Finally, Morgan Stanley raised their price objective on Chubb Corp. from $136.00 to $140.00 and gave the stock an overweight rating in a research report on Thursday, July 28th. Two analysts have rated the stock with a sell rating, three have issued a hold rating and twelve have issued a buy rating to the company’s stock. Chubb Corp. has an average rating of Buy and a consensus price target of $132.07.
Shares of Chubb Corp. (NYSE:CB) opened at 126.69 on Monday. Chubb Corp. has a 12-month low of $106.82 and a 12-month high of $131.00. The firm’s 50-day moving average price is $125.15 and its 200 day moving average price is $126.09. The company has a market cap of $58.95 billion, a price-to-earnings ratio of 16.97 and a beta of 0.86.
Chubb Corp. (NYSE:CB) last announced its earnings results on Tuesday, October 25th. The company reported $2.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.58 by $0.30. The business had revenue of $7.57 billion for the quarter, compared to analysts’ expectations of $7.36 billion. Chubb Corp. had a return on equity of 9.88% and a net margin of 11.20%. The business’s revenue for the quarter was down 4.0% on a year-over-year basis. During the same quarter last year, the firm earned $2.37 EPS. On average, analysts predict that Chubb Corp. will post $9.79 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, January 20th. Stockholders of record on Friday, December 30th will be given a dividend of $0.69 per share. This represents a $2.76 dividend on an annualized basis and a dividend yield of 2.18%. Chubb Corp.’s dividend payout ratio (DPR) is presently 36.90%.
In related news, EVP Sean Ringsted sold 4,000 shares of Chubb Corp. stock in a transaction dated Wednesday, November 23rd. The stock was sold at an average price of $126.50, for a total value of $506,000.00. Following the sale, the executive vice president now directly owns 150,192 shares in the company, valued at approximately $18,999,288. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director David H. Sidwell acquired 830 shares of the stock in a transaction that occurred on Monday, September 26th. The stock was purchased at an average price of $124.90 per share, for a total transaction of $103,667.00. Following the completion of the acquisition, the director now owns 7,386 shares in the company, valued at approximately $922,511.40. The disclosure for this purchase can be found here. Insiders own 0.43% of the company’s stock.
Large investors have recently bought and sold shares of the company. Evercore Wealth Management LLC boosted its stake in Chubb Corp. by 0.4% in the second quarter. Evercore Wealth Management LLC now owns 431,640 shares of the company’s stock valued at $56,420,000 after buying an additional 1,671 shares during the last quarter. MD Sass Investors Services Inc. boosted its stake in Chubb Corp. by 16.0% in the second quarter. MD Sass Investors Services Inc. now owns 616,603 shares of the company’s stock valued at $80,591,000 after buying an additional 85,250 shares during the last quarter. Cincinnati Financial Corp boosted its stake in Chubb Corp. by 42.1% in the second quarter. Cincinnati Financial Corp now owns 242,902 shares of the company’s stock valued at $31,750,000 after buying an additional 72,000 shares during the last quarter. Cooke & Bieler LP boosted its stake in Chubb Corp. by 37.7% in the second quarter. Cooke & Bieler LP now owns 583,427 shares of the company’s stock valued at $76,260,000 after buying an additional 159,607 shares during the last quarter. Finally, Adage Capital Partners GP L.L.C. boosted its stake in Chubb Corp. by 12.5% in the second quarter. Adage Capital Partners GP L.L.C. now owns 728,497 shares of the company’s stock valued at $95,222,000 after buying an additional 81,158 shares during the last quarter. Institutional investors own 86.30% of the company’s stock.
About Chubb Corp.
Chubb Limited (Chubb), formerly ACE Limited, is a holding company. The Company, through its subsidiaries, provides a range of insurance and reinsurance products to insureds across the world. The Company’s segments include North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance and Life Insurance.