Chubb (CB) Downgraded to “Sell” at Zacks Investment Research
Chubb (NYSE:CB) was downgraded by Zacks Investment Research from a “buy” rating to a “sell” rating in a report released on Friday.
According to Zacks, “Chubb stands a good chance of taking leadership in the P&C space, benefiting from compelling products and services. Its inorganic growth story is impressive, helping it achieve higher long-term ROE. Investment results are exhibiting improvement owing to improving rate environment. A strong capital position helps Chubb boost in shareholders’ value and invest in strategic initiatives to drive growth. Notably, it is on track to achieve annual run-rate integration-related savings of $875 million (up from $800 million guided earlier) by the end of 2018. However, exposure to cat loss and escalating expenses raise concerns for Chubb. The company estimates fourth quarter cat loss from wildfire in California to be about $249 million and another $34 million from all other natural catastrophe. Shares of Chubb have undeperformed the industry in a year's time.”
A number of other research firms have also commented on CB. Wells Fargo & Co set a $169.00 price objective on shares of Chubb and gave the company a “buy” rating in a research note on Wednesday, November 29th. Keefe, Bruyette & Woods reiterated a “buy” rating and set a $153.00 price objective on shares of Chubb in a research note on Thursday, September 28th. Goldman Sachs Group started coverage on shares of Chubb in a research note on Monday, December 4th. They set a “buy” rating and a $167.00 price objective on the stock. UBS Group raised their price objective on shares of Chubb from $160.00 to $169.00 and gave the company a “buy” rating in a research note on Wednesday, November 1st. Finally, JPMorgan Chase & Co. upgraded shares of Chubb from a “neutral” rating to an “overweight” rating in a research note on Wednesday, November 8th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and ten have assigned a buy rating to the company. The company has a consensus rating of “Buy” and an average target price of $161.33.
Chubb (NYSE:CB) last posted its quarterly earnings data on Thursday, October 26th. The financial services provider reported ($0.13) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.24) by $0.11. Chubb had a net margin of 12.15% and a return on equity of 7.22%. The business had revenue of $7.36 billion for the quarter, compared to analyst estimates of $7.14 billion. During the same quarter last year, the business earned $2.88 earnings per share. The business’s revenue for the quarter was up 4.6% on a year-over-year basis. analysts forecast that Chubb will post 7.21 EPS for the current year.
Chubb declared that its board has initiated a stock buyback program on Thursday, December 21st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to reacquire shares of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.
In related news, CEO Evan G. Greenberg sold 95,761 shares of the firm’s stock in a transaction that occurred on Thursday, December 21st. The shares were sold at an average price of $145.56, for a total value of $13,938,971.16. Following the completion of the transaction, the chief executive officer now owns 1,367,229 shares of the company’s stock, valued at approximately $199,013,853.24. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider John J. Lupica sold 16,674 shares of the firm’s stock in a transaction that occurred on Thursday, October 19th. The stock was sold at an average price of $152.02, for a total transaction of $2,534,781.48. The disclosure for this sale can be found here. In the last 90 days, insiders sold 164,956 shares of company stock worth $24,417,316. 0.43% of the stock is currently owned by company insiders.
A number of institutional investors have recently bought and sold shares of CB. Manchester Capital Management LLC acquired a new position in Chubb in the 2nd quarter worth approximately $106,000. Atlantic Trust LLC acquired a new position in Chubb in the 2nd quarter worth approximately $116,000. Horan Capital Advisors LLC. acquired a new position in Chubb in the 3rd quarter worth approximately $133,000. Zions Bancorporation boosted its stake in Chubb by 716.3% in the 3rd quarter. Zions Bancorporation now owns 1,151 shares of the financial services provider’s stock worth $164,000 after purchasing an additional 1,010 shares during the period. Finally, Highland Private Wealth Management acquired a new stake in shares of Chubb during the 2nd quarter valued at $197,000. 88.17% of the stock is owned by hedge funds and other institutional investors.
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Chubb Company Profile
Chubb Limited is a holding company. The Company, through its subsidiaries, provides a range of insurance and reinsurance products and services to clients around the world. Its segments include North America Commercial property and casualty (P&C) Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance and Life Insurance.
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