Chubb Corp. (CB) Upgraded to Hold by Zacks Investment Research
Chubb Corp. (NYSE:CB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Friday.
According to Zacks, “Chubb stands a good chance of taking leadership in the P&C space benefiting from complementary products and services. It’s inorganic growth story seems impressive and should help it achieve higher long-term ROE. A strong capital position helps Chubb to engage in shareholder friendly moves and invest in strategic initiatives that drive growth. Recently, Chubb announced that its enterprise-wide insurance solution, Integrity+, will now be available in Canada. The latest policy will protect Canadian companies from errors and omissions (E&O) liability customer lawsuits. Chubb expects third quarter investment income between $820-830 million. However, the company’s exposure to cat loss and a low interest rate environment are headwinds. Rising expenses and eroding margins are concerns.”
A number of other equities analysts also recently weighed in on the company. Atlantic Securities downgraded Chubb Corp. from a “neutral” rating to an “underweight” rating and set a $115.00 price target on the stock. in a research report on Thursday, June 16th. BMO Capital Markets downgraded Chubb Corp. from an “outperform” rating to a “market perform” rating and set a $136.00 price target on the stock. in a research report on Monday, July 11th. They noted that the move was a valuation call. Credit Suisse Group AG set a $136.00 price target on Chubb Corp. and gave the stock a “buy” rating in a research report on Monday, September 12th. Barclays PLC upped their target price on Chubb Corp. from $133.00 to $139.00 and gave the company an “overweight” rating in a research report on Friday, September 30th. Finally, Citigroup Inc. reaffirmed a “neutral” rating on shares of Chubb Corp. in a research report on Tuesday, June 21st. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and eleven have given a buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $131.67.
Shares of Chubb Corp. (NYSE:CB) opened at 121.88 on Friday. The firm has a market capitalization of $56.68 billion, a PE ratio of 20.19 and a beta of 1.02. Chubb Corp. has a 12-month low of $105.40 and a 12-month high of $131.00. The company’s 50-day moving average price is $125.70 and its 200-day moving average price is $124.72.
Chubb Corp. (NYSE:CB) last announced its quarterly earnings results on Tuesday, July 26th. The company reported $2.25 earnings per share for the quarter, missing analysts’ consensus estimates of $2.45 by $0.20. The business had revenue of $7.64 billion for the quarter, compared to analyst estimates of $7.40 billion. Chubb Corp. had a return on equity of 9.92% and a net margin of 9.35%. Chubb Corp.’s quarterly revenue was up 59.7% compared to the same quarter last year. During the same period last year, the firm earned $2.08 EPS. Analysts anticipate that Chubb Corp. will post $9.60 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 21st. Investors of record on Friday, September 30th will be issued a $0.69 dividend. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $2.76 dividend on an annualized basis and a yield of 2.26%. Chubb Corp.’s payout ratio is 44.37%.
In related news, Director Robert W. Scully acquired 10,725 shares of the firm’s stock in a transaction that occurred on Wednesday, August 3rd. The stock was acquired at an average cost of $125.95 per share, for a total transaction of $1,350,813.75. Following the completion of the acquisition, the director now directly owns 5,779 shares of the company’s stock, valued at approximately $727,865.05. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Sean Ringsted sold 15,570 shares of the stock in a transaction on Tuesday, August 2nd. The shares were sold at an average price of $125.00, for a total value of $1,946,250.00. Following the completion of the sale, the executive vice president now owns 169,762 shares of the company’s stock, valued at $21,220,250. The disclosure for this sale can be found here. 0.43% of the stock is owned by corporate insiders.
A number of hedge funds have recently bought and sold shares of the stock. Associated Banc Corp acquired a new stake in shares of Chubb Corp. during the first quarter worth $212,000. Ropes Wealth Advisors LLC increased its stake in shares of Chubb Corp. by 0.4% in the first quarter. Ropes Wealth Advisors LLC now owns 9,022 shares of the company’s stock worth $1,075,000 after buying an additional 39 shares during the last quarter. Cannell Peter B & Co Inc acquired a new stake in shares of Chubb Corp. during the first quarter worth $31,095,000. Wunderlich Capital Managemnt acquired a new stake in shares of Chubb Corp. during the first quarter worth $1,520,000. Finally, Picton Mahoney Asset Management acquired a new stake in shares of Chubb Corp. during the first quarter worth $14,082,000. Institutional investors and hedge funds own 87.25% of the company’s stock.
About Chubb Corp.
Chubb Limited (Chubb), formerly ACE Limited, is a holding company. The Company, through its subsidiaries, provides a range of insurance and reinsurance products to insureds across the world. The Company’s segments include North America Commercial 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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