Chubb (NYSE:CB) was downgraded by Zacks Investment Research from a “buy” rating to a “sell” rating in a report released on Friday, January 5th.
According to Zacks, “Chubb stands a good chance of taking leadership in the P&C space, benefiting from compelling products and services. Its inorganic growth story is impressive, helping it achieve higher long-term ROE. Investment results are exhibiting improvement owing to improving rate environment. A strong capital position helps Chubb boost in shareholders’ value and invest in strategic initiatives to drive growth. Notably, it is on track to achieve annual run-rate integration-related savings of $875 million (up from $800 million guided earlier) by the end of 2018. However, exposure to cat loss and escalating expenses raise concerns for Chubb. The company estimates fourth quarter cat loss from wildfire in California to be about $249 million and another $34 million from all other natural catastrophe. Shares of Chubb have undeperformed the industry in a year's time.”
CB has been the topic of a number of other research reports. Wells Fargo & Co reaffirmed a “buy” rating and set a $164.00 price objective on shares of Chubb in a research note on Thursday, September 28th. Goldman Sachs Group started coverage on shares of Chubb in a research note on Monday, December 4th. They set a “buy” rating and a $167.00 price objective on the stock. Credit Suisse Group reaffirmed a “neutral” rating and set a $156.00 price objective on shares of Chubb in a research note on Tuesday, December 19th. UBS Group raised their price objective on shares of Chubb from $160.00 to $169.00 and gave the stock a “buy” rating in a research note on Wednesday, November 1st. Finally, Keefe, Bruyette & Woods reissued a “buy” rating and issued a $153.00 price target on shares of Chubb in a research note on Sunday, October 29th. One research analyst has rated the stock with a sell rating, four have given a hold rating and ten have given a buy rating to the company. Chubb has a consensus rating of “Buy” and an average target price of $161.33.
Shares of Chubb (NYSE CB) traded down $0.79 during trading hours on Friday, reaching $144.50. 1,428,600 shares of the company traded hands, compared to its average volume of 1,870,125. Chubb has a one year low of $127.15 and a one year high of $156.00. The company has a current ratio of 0.30, a quick ratio of 0.30 and a debt-to-equity ratio of 0.23. The firm has a market cap of $66,920.00, a P/E ratio of 17.33, a PEG ratio of 1.36 and a beta of 0.96.
Chubb (NYSE:CB) last issued its quarterly earnings results on Thursday, October 26th. The financial services provider reported ($0.13) earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.24) by $0.11. The company had revenue of $7.36 billion for the quarter, compared to the consensus estimate of $7.14 billion. Chubb had a negative net margin of 0.81% and a negative return on equity of 0.56%. Chubb’s quarterly revenue was up 4.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.88 EPS. research analysts anticipate that Chubb will post 7.22 EPS for the current year.
Chubb declared that its Board of Directors has authorized a share repurchase plan on Thursday, December 21st that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to reacquire shares of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its stock is undervalued.
In related news, insider Paul Bennett Medini sold 5,180 shares of the business’s stock in a transaction dated Thursday, November 9th. The shares were sold at an average price of $150.48, for a total value of $779,486.40. Following the sale, the insider now directly owns 91,775 shares in the company, valued at approximately $13,810,302. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Evan G. Greenberg sold 95,761 shares of the business’s stock in a transaction dated Thursday, December 21st. The shares were sold at an average price of $145.56, for a total transaction of $13,938,971.16. Following the completion of the sale, the chief executive officer now owns 1,367,229 shares in the company, valued at $199,013,853.24. The disclosure for this sale can be found here. Insiders sold a total of 164,956 shares of company stock worth $24,417,316 in the last 90 days. 0.43% of the stock is currently owned by insiders.
A number of institutional investors and hedge funds have recently modified their holdings of CB. Manchester Capital Management LLC purchased a new stake in Chubb in the 2nd quarter valued at about $106,000. Atlantic Trust LLC purchased a new stake in Chubb in the 2nd quarter valued at about $116,000. Horan Capital Advisors LLC. acquired a new position in Chubb in the 3rd quarter valued at about $133,000. Zions Bancorporation grew its position in Chubb by 716.3% in the 3rd quarter. Zions Bancorporation now owns 1,151 shares of the financial services provider’s stock valued at $164,000 after acquiring an additional 1,010 shares in the last quarter. Finally, Highland Private Wealth Management acquired a new position in Chubb in the 2nd quarter valued at about $197,000. Hedge funds and other institutional investors own 88.17% of the company’s stock.
Chubb Limited is a holding company. The Company, through its subsidiaries, provides a range of insurance and reinsurance products and services to clients around the world. Its segments include North America Commercial property and casualty (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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