Chubb (NYSE:CB) Sets New 52-Week High Following Analyst Upgrade

Shares of Chubb Limited (NYSE:CB) 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 traded. The stock had previously closed at $330.97.

Other analysts also recently issued reports about the company. JPMorgan Chase & Co. upped their price objective on Chubb from $327.00 to $330.00 and gave the stock a “neutral” rating in a report on Wednesday, February 4th. UBS Group upped their price target on Chubb from $292.00 to $298.00 and gave the stock a “neutral” rating in a research note on Monday, October 27th. Jefferies Financial Group raised their price objective on Chubb from $326.00 to $333.00 and gave the stock a “hold” rating in a report on Thursday, February 5th. JMP Securities reiterated a “market outperform” rating and set a $325.00 target price on shares of Chubb in a report on Wednesday, October 22nd. Finally, The Goldman Sachs Group restated a “buy” rating and issued a $366.00 price target on shares of Chubb in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $338.14.

Insider Buying and Selling

In other news, EVP Joseph F. Wayland sold 5,830 shares of Chubb stock in a transaction that occurred on Thursday, November 13th. The shares were sold at an average price of $297.08, for a total transaction of $1,731,976.40. Following the sale, the executive vice president owned 60,593 shares in the company, valued at $18,000,968.44. This trade represents a 8.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Timothy Alan Boroughs sold 10,580 shares of the business’s stock in a transaction on Monday, November 24th. The stock was sold at an average price of $296.17, for a total transaction of $3,133,478.60. Following the transaction, the executive vice president directly owned 12,660 shares in the company, valued at approximately $3,749,512.20. The trade was a 45.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 48,695 shares of company stock valued at $14,962,673. Insiders own 0.86% of the company’s stock.

Key Chubb News

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

Hedge Funds Weigh In On Chubb

A number of institutional investors have recently added to or reduced their stakes in the company. Westbourne Investment Advisors Inc. raised its position in Chubb by 12.3% in the third quarter. Westbourne Investment Advisors Inc. now owns 22,233 shares of the financial services provider’s stock worth $6,275,000 after acquiring an additional 2,427 shares in the last quarter. Assetmark Inc. boosted its position in shares of Chubb by 14.1% during the 2nd quarter. Assetmark Inc. now owns 71,294 shares of the financial services provider’s stock valued at $20,655,000 after purchasing an additional 8,828 shares in the last quarter. Sivia Capital Partners LLC grew its stake in shares of Chubb by 166.3% in the 3rd quarter. Sivia Capital Partners LLC now owns 3,707 shares of the financial services provider’s stock worth $1,046,000 after purchasing an additional 2,315 shares during the last quarter. Liberty One Investment Management LLC bought a new stake in shares of Chubb in the 3rd quarter worth approximately $51,167,000. Finally, Cooke & Bieler LP raised its holdings in shares of Chubb by 21.3% in the 3rd quarter. Cooke & Bieler LP now owns 606,011 shares of the financial services provider’s stock worth $171,047,000 after purchasing an additional 106,237 shares in the last quarter. Institutional investors and hedge funds own 83.81% of the company’s stock.

Chubb Trading Down 1.4%

The firm has a market capitalization of $128.40 billion, a price-to-earnings ratio of 12.68, a price-to-earnings-growth 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’s 50 day moving average is $308.06 and its 200 day moving average is $289.69.

Chubb (NYSE:CB) last posted its quarterly earnings results on Tuesday, February 3rd. The financial services provider reported $7.52 earnings per share (EPS) for the quarter, beating 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 company had revenue of $2.08 billion for the quarter, compared to analysts’ expectations of $11.11 billion. The firm’s revenue was up 8.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $6.02 earnings per share. Equities analysts forecast that Chubb Limited will post 21.52 earnings per share for the current year.

Chubb Announces Dividend

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

About Chubb

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.