Chubb (NYSE:CB) Sets New 12-Month High on Strong Earnings

Chubb Limited (NYSE:CB) shares hit a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $328.35 and last traded at $326.9550, with a volume of 200043 shares trading hands. The stock had previously closed at $313.38.

The financial services provider reported $7.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.33 by $1.19. The firm had revenue of $2.08 billion for the quarter, compared to analyst estimates of $11.11 billion. Chubb had a net margin of 17.36% and a return on equity of 13.15%. Chubb’s revenue was up 8.9% compared to the same quarter last year. During the same quarter last year, the business earned $6.02 earnings per share.

Chubb Announces Dividend

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

Key Stories Impacting Chubb

Here are the key news stories impacting Chubb this week:

• Positive Sentiment: Q4 results beat and underwriting strength — Chubb reported record earnings and core EPS that topped estimates, helped by higher investment returns, lower catastrophe losses and a notably low combined ratio. This is the primary driver behind the rally. Earnings Call Highlights
• Positive Sentiment: Market reaction: stock hit a record high and is on a multi-day win streak following the results, reflecting strong investor demand. MSN: Record High
• Positive Sentiment: Bullish analyst actions — several firms raised price targets and/or maintained outperform/buy stances (notably Roth Capital to $360, Evercore ISI to $347 and Citizens JMP reaffirming market outperform at $350), supporting upside conviction. Roth/Analyst Moves
• Positive Sentiment: Cyber risk partnership — Chubb named Arctic Wolf as a preferred Managed Detection & Response provider, reinforcing its cyber risk-management capabilities for insureds (helps product competitiveness). GlobeNewswire: Arctic Wolf
• Neutral Sentiment: Analyst commentary and notes on key metrics — coverage pieces and analyst reviews dig into combined ratio, underwriting trends and investment assumptions; these provide context but are not new catalysts by themselves. Zacks: Q4 Analysis
• Negative Sentiment: Some targets imply limited near-term upside or modest downside — Piper Sandler’s new $319 target (neutral), Wells Fargo’s $322 (equal weight) and JPMorgan’s $330 (neutral) sit at or below the current share price, which could cap gains or trigger profit-taking among more cautious investors. MarketScreener: Piper Sandler

Analysts Set New Price Targets

CB has been the subject of several recent analyst reports. Morgan Stanley set a $350.00 price target on Chubb in a report on Friday, January 16th. Hsbc Global Res raised shares of Chubb from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 16th. Cantor Fitzgerald boosted their target price on shares of Chubb from $300.00 to $309.00 and gave the company a “neutral” rating in a report on Wednesday, January 14th. JMP Securities reaffirmed a “market outperform” rating and set a $325.00 price target on shares of Chubb in a research note on Wednesday, October 22nd. Finally, Bank of America decreased their price target on shares of Chubb from $279.00 to $259.00 and set an “underperform” rating on the stock in a report on Friday, January 16th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Chubb presently has an average rating of “Moderate Buy” and a consensus price target of $329.14.

Insider Buying and Selling at Chubb

In related news, insider John J. Lupica sold 16,375 shares of Chubb stock in a transaction on Friday, November 14th. The shares were sold at an average price of $296.45, for a total transaction of $4,854,368.75. Following the transaction, the insider owned 74,225 shares in the company, valued at approximately $22,004,001.25. The trade was a 18.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Timothy Alan Boroughs sold 10,580 shares of the company’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 sale, the executive vice president directly owned 12,660 shares of the company’s stock, valued at approximately $3,749,512.20. This trade represents a 45.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 33,635 shares of company stock valued at $9,970,735 over the last ninety days. Corporate insiders own 0.77% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Kathmere Capital Management LLC raised its stake in shares of Chubb by 2.7% during the 4th quarter. Kathmere Capital Management LLC now owns 1,297 shares of the financial services provider’s stock worth $405,000 after buying an additional 34 shares during the period. Wright Investors Service Inc. grew its stake in Chubb by 0.7% in the 4th quarter. Wright Investors Service Inc. now owns 4,927 shares of the financial services provider’s stock valued at $1,538,000 after acquiring an additional 34 shares during the period. G&S Capital LLC increased its holdings in Chubb by 1.5% in the 4th quarter. G&S Capital LLC now owns 2,271 shares of the financial services provider’s stock worth $709,000 after acquiring an additional 34 shares in the last quarter. Mitchell & Pahl Private Wealth LLC raised its position in Chubb by 0.5% during the third quarter. Mitchell & Pahl Private Wealth LLC now owns 7,381 shares of the financial services provider’s stock worth $2,083,000 after acquiring an additional 35 shares during the period. Finally, Golden State Wealth Management LLC raised its position in Chubb by 7.4% during the third quarter. Golden State Wealth Management LLC now owns 525 shares of the financial services provider’s stock worth $148,000 after acquiring an additional 36 shares during the period. Institutional investors and hedge funds own 83.81% of the company’s stock.

Chubb Trading Up 0.6%

The company’s fifty day simple moving average is $306.70 and its 200-day simple moving average is $288.69. The firm has a market capitalization of $130.38 billion, a PE ratio of 12.88, a P/E/G ratio of 2.11 and a beta of 0.49. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.24 and a quick ratio of 0.27.

Chubb Company Profile

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.