The Travelers Companies, Inc. (TRV) Upgraded to Hold at Zacks Investment Research
The Travelers Companies, Inc. (NYSE:TRV) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Thursday.
According to Zacks, “Travelers boasts a strong market position as one of the leading writers of auto and homeowners’ insurance and commercial U.S. property-casualty insurance. Its inorganic growth story remains impressive. It has been generating sufficient capital, which it prudently deploys to enhance shareholders’ value. Solid retention and a positive renewal rate change are positives. However, competitive property and casualty insurance market can challenge Travelers' growth prospects. Low interest rate environment and adverse foreign currency movements continue to weigh on written premiums, while exposure to catastrophe losses pose headwind for underwriting results. Also, it estimates $15–$20 million lower after-tax net investment income on a quarterly basis. Moreover, shares of Travelers underperformed the industry year to date. The company witnessed its 2017 and 2018 estimates moving south over the last 60 days.”
Other analysts have also recently issued research reports about the stock. BidaskClub cut shares of The Travelers Companies from a “buy” rating to a “hold” rating in a research report on Wednesday, July 12th. Vetr upgraded shares of The Travelers Companies from a “hold” rating to a “buy” rating and set a $132.68 price objective on the stock in a report on Tuesday, June 27th. Keefe, Bruyette & Woods reiterated a “hold” rating and set a $115.00 price objective on shares of The Travelers Companies in a report on Thursday, May 25th. Barclays PLC upped their price objective on shares of The Travelers Companies from $119.00 to $122.00 and gave the company an “equal weight” rating in a report on Friday, August 11th. Finally, Bank of America Corporation lowered shares of The Travelers Companies from a “buy” rating to a “neutral” rating and upped their price objective for the company from $120.62 to $129.44 in a report on Monday, June 19th. Five analysts have rated the stock with a sell rating, eight have given a hold rating and eight have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus price target of $126.26.
Shares of The Travelers Companies (NYSE:TRV) opened at 121.225 on Thursday. The Travelers Companies has a 52 week low of $103.45 and a 52 week high of $130.37. The firm has a market cap of $33.45 billion, a P/E ratio of 12.072 and a beta of 1.21. The company’s 50-day moving average price is $125.64 and its 200 day moving average price is $123.88.
The Travelers Companies (NYSE:TRV) last issued its quarterly earnings results on Thursday, July 20th. The insurance provider reported $1.92 EPS for the quarter, missing the Zacks’ consensus estimate of $2.07 by ($0.15). The firm had revenue of $6.35 billion for the quarter, compared to the consensus estimate of $6.31 billion. The Travelers Companies had a net margin of 10.15% and a return on equity of 11.68%. The business’s revenue was up 4.7% compared to the same quarter last year. During the same period last year, the company posted $2.20 EPS. On average, equities analysts anticipate that The Travelers Companies will post $8.89 earnings per share for the current year.
The Travelers Companies announced that its board has initiated a share repurchase plan on Monday, September 11th that authorizes the company to repurchase outstanding shares. This repurchase authorization authorizes the insurance provider to buy shares of its stock through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its shares are undervalued.
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In other The Travelers Companies news, EVP Kenneth Franklin Spence III sold 4,800 shares of The Travelers Companies stock in a transaction on Monday, August 14th. The shares were sold at an average price of $128.73, for a total transaction of $617,904.00. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Vice Chairman William H. Heyman sold 24,000 shares of The Travelers Companies stock in a transaction on Tuesday, July 25th. The stock was sold at an average price of $126.64, for a total transaction of $3,039,360.00. Following the sale, the insider now directly owns 253,744 shares in the company, valued at approximately $32,134,140.16. The disclosure for this sale can be found here. Insiders sold a total of 150,395 shares of company stock worth $19,249,559 in the last three months. 0.82% of the stock is owned by corporate insiders.
Institutional investors and hedge funds have recently made changes to their positions in the business. Lowe FS acquired a new stake in The Travelers Companies during the 3rd quarter worth $15,000. CWM LLC boosted its stake in The Travelers Companies by 4.9% during the 2nd quarter. CWM LLC now owns 794 shares of the insurance provider’s stock worth $100,000 after purchasing an additional 37 shares during the last quarter. Westside Investment Management Inc. boosted its stake in The Travelers Companies by 361.1% during the 1st quarter. Westside Investment Management Inc. now owns 876 shares of the insurance provider’s stock worth $106,000 after purchasing an additional 686 shares during the last quarter. First Personal Financial Services boosted its stake in The Travelers Companies by 133.3% during the 1st quarter. First Personal Financial Services now owns 889 shares of the insurance provider’s stock worth $107,000 after purchasing an additional 508 shares during the last quarter. Finally, Intellectus Partners LLC acquired a new stake in The Travelers Companies during the 4th quarter worth $109,000. 77.55% of the stock is currently owned by institutional investors.
The Travelers Companies Company Profile
The Travelers Companies, Inc is a holding company. The Company’s segments include Business and International Insurance; Bond & Specialty Insurance, and Personal Insurance. Through its subsidiaries, it provides commercial and personal property and casualty insurance products and services. The Business and International Insurance segment offers property and casualty insurance and insurance related services to its clients, in the United States and in Canada, as well as in the United Kingdom, the Republic of Ireland, Brazil and throughout other parts of the world.
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