Investors Buy Shares of Chubb (CB) on Weakness After Analyst Downgrade

Investors purchased shares of Chubb Ltd (NYSE:CB) on weakness during trading hours on Thursday after Citigroup lowered their price target on the stock from $150.00 to $145.00. $142.46 million flowed into the stock on the tick-up and $96.36 million flowed out of the stock on the tick-down, for a money net flow of $46.10 million into the stock. Of all stocks tracked, Chubb had the 8th highest net in-flow for the day. Chubb traded down ($1.32) for the day and closed at $123.68

Several other research firms have also recently commented on CB. Wells Fargo & Co reissued a “buy” rating on shares of Chubb in a research note on Wednesday, August 8th. ValuEngine raised shares of Chubb from a “sell” rating to a “hold” rating in a research note on Thursday, August 2nd. Credit Suisse Group assumed coverage on shares of Chubb in a research note on Tuesday, August 7th. They set a “neutral” rating and a $150.00 price target on the stock. Zacks Investment Research cut shares of Chubb from a “hold” rating to a “sell” rating in a research note on Tuesday, September 25th. Finally, Deutsche Bank cut shares of Chubb from a “hold” rating to a “sell” rating and decreased their price target for the company from $135.00 to $126.00 in a research note on Monday, August 13th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and eight have assigned a buy rating to the company. The stock has an average rating of “Hold” and a consensus price target of $159.00.

In related news, insider Timothy Alan Boroughs sold 14,971 shares of the stock in a transaction that occurred on Thursday, September 20th. The shares were sold at an average price of $139.37, for a total value of $2,086,508.27. Following the transaction, the insider now directly owns 202,794 shares in the company, valued at $28,263,399.78. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Evan G. Greenberg sold 227,994 shares of the stock in a transaction that occurred on Wednesday, September 19th. The shares were sold at an average price of $140.29, for a total transaction of $31,985,278.26. Following the completion of the transaction, the chief executive officer now owns 1,583,326 shares in the company, valued at $222,124,804.54. The disclosure for this sale can be found here. Insiders sold 243,093 shares of company stock worth $34,089,733 over the last 90 days. 0.44% of the stock is currently owned by company insiders.



A number of hedge funds and other institutional investors have recently made changes to their positions in CB. Russell Investments Group Ltd. acquired a new position in Chubb in the second quarter valued at approximately $95,936,000. American Century Companies Inc. lifted its holdings in Chubb by 12.3% in the second quarter. American Century Companies Inc. now owns 4,610,946 shares of the financial services provider’s stock valued at $585,682,000 after buying an additional 504,768 shares during the period. Massachusetts Financial Services Co. MA lifted its holdings in Chubb by 3.7% in the second quarter. Massachusetts Financial Services Co. MA now owns 13,848,022 shares of the financial services provider’s stock valued at $1,758,976,000 after buying an additional 488,028 shares during the period. Toronto Dominion Bank lifted its holdings in Chubb by 111.8% in the second quarter. Toronto Dominion Bank now owns 714,775 shares of the financial services provider’s stock valued at $90,780,000 after buying an additional 377,292 shares during the period. Finally, Welch & Forbes LLC acquired a new position in Chubb in the third quarter valued at approximately $42,812,000. Institutional investors and hedge funds own 85.99% of the company’s stock.

The firm has a market cap of $58.62 billion, a price-to-earnings ratio of 15.37, a P/E/G ratio of 1.26 and a beta of 1.01. The company has a current ratio of 0.31, a quick ratio of 0.31 and a debt-to-equity ratio of 0.24.

Chubb (NYSE:CB) last announced its quarterly earnings data on Tuesday, October 23rd. The financial services provider reported $2.41 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.39 by $0.02. The business had revenue of $7.55 billion for the quarter, compared to analyst estimates of $7.63 billion. Chubb had a net margin of 11.53% and a return on equity of 7.41%. Chubb’s revenue was up 2.5% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.13) earnings per share. Equities research analysts forecast that Chubb Ltd will post 10.08 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Friday, October 12th. Shareholders of record on Friday, September 21st were issued a $0.73 dividend. The ex-dividend date was Thursday, September 20th. This represents a $2.92 annualized dividend and a yield of 2.37%. Chubb’s dividend payout ratio (DPR) is presently 36.36%.

About Chubb (NYSE:CB)

Chubb Limited, through its subsidiaries, provides insurance and reinsurance products worldwide. Its North America Commercial P&C Insurance segment offers commercial property, marine, general casualty, workers' compensation, package policies, and risk management; and professional lines, marine, construction, environmental, medical, cyber risk, and excess casualty, as well as group accident and health insurance to large, middle market, and small commercial businesses in the United States, Canada, and Bermuda.

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