The Travelers Companies (NYSE:TRV) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Thursday. The brokerage currently has a $154.00 price objective on the insurance provider’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 11.98% from the company’s previous close.
According to Zacks, “Shares of Travelers have outperformed the industry, year to date. Travelers boasts a strong market position as one of the leading writers of auto and homeowners’ insurance and commercial U.S. property-casualty insurance with impressive inorganic growth story. It has been generating sufficient capital and prudently uses it to boost shareholders’ value and pursue growth initiatives. Solid retention and positive renewal rate change are the positives. However, exposure to catastrophe loss poses headwind for underwriting results. With the rising interest rate environment, the company expects $25-$30 million higher after-tax net investment income on a quarterly basis. It is set to release first quarter results on Apr 24. A Zacks Rank #2 combined with Earnings ESP of 2.00% makes us reasonably confident of an earnings beat.”
Several other analysts have also recently commented on TRV. ValuEngine cut shares of The Travelers Companies from a “buy” rating to a “hold” rating in a research note on Wednesday, January 3rd. Bank of America raised shares of The Travelers Companies from a “neutral” rating to a “buy” rating in a research note on Tuesday, January 9th. Wells Fargo reaffirmed a “market perform” rating and issued a $142.00 price objective on shares of The Travelers Companies in a research note on Tuesday, January 23rd. Credit Suisse Group raised their price objective on shares of The Travelers Companies from $141.00 to $144.00 and gave the company a “neutral” rating in a research note on Wednesday, January 24th. Finally, Atlantic Securities raised shares of The Travelers Companies from an “underweight” rating to a “neutral” rating and set a $110.00 price objective on the stock in a research note on Friday, January 26th. Three research analysts have rated the stock with a sell rating, eight have given a hold rating and eight have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $138.07.
The Travelers Companies (NYSE:TRV) last released its quarterly earnings results on Tuesday, January 23rd. The insurance provider reported $2.28 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $2.56 by ($0.28). The Travelers Companies had a net margin of 7.13% and a return on equity of 8.61%. The company had revenue of $7.45 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same period last year, the company earned $3.20 earnings per share. The Travelers Companies’s revenue for the quarter was up 3.6% compared to the same quarter last year. analysts anticipate that The Travelers Companies will post 10.62 EPS for the current year.
In related news, Vice Chairman Jay S. Benet sold 4,437 shares of the firm’s stock in a transaction on Wednesday, April 4th. The shares were sold at an average price of $134.90, for a total transaction of $598,551.30. Following the sale, the insider now directly owns 89,737 shares in the company, valued at $12,105,521.30. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Brian W. Maclean sold 88,607 shares of the firm’s stock in a transaction on Friday, January 26th. The stock was sold at an average price of $149.29, for a total transaction of $13,228,139.03. Following the sale, the chief operating officer now owns 211,293 shares in the company, valued at $31,543,931.97. The disclosure for this sale can be found here. Over the last quarter, insiders sold 200,475 shares of company stock worth $29,286,574. Company insiders own 0.82% of the company’s stock.
Several large investors have recently modified their holdings of TRV. Point72 Asset Management L.P. acquired a new stake in The Travelers Companies in the 3rd quarter valued at $8,254,000. Abner Herrman & Brock LLC grew its position in shares of The Travelers Companies by 6.5% in the 4th quarter. Abner Herrman & Brock LLC now owns 62,879 shares of the insurance provider’s stock valued at $8,529,000 after acquiring an additional 3,853 shares during the period. Valeo Financial Advisors LLC grew its position in shares of The Travelers Companies by 138.2% in the 4th quarter. Valeo Financial Advisors LLC now owns 2,091 shares of the insurance provider’s stock valued at $284,000 after acquiring an additional 1,213 shares during the period. Eaton Vance Management boosted its holdings in shares of The Travelers Companies by 2.2% during the 4th quarter. Eaton Vance Management now owns 232,379 shares of the insurance provider’s stock worth $31,520,000 after buying an additional 4,903 shares during the period. Finally, First Business Financial Services Inc. boosted its holdings in shares of The Travelers Companies by 16.9% during the 4th quarter. First Business Financial Services Inc. now owns 5,684 shares of the insurance provider’s stock worth $771,000 after buying an additional 822 shares during the period. Institutional investors and hedge funds own 80.14% of the company’s stock.
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About The Travelers Companies
The Travelers Companies, Inc, through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United states and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance.
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