Zacks Investment Research Downgrades Chubb Corp. (CB) to Sell
Chubb Corp. (NYSE:CB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.
According to Zacks, “Chubb’s exposure to cat loss and a low interest rate environment are headwinds. Rising expenses and eroding margins are concerns. Nonetheless, it 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’s unit, ESIS, introduced three new industry practices that will offer a better and superior level of expertise to the clients and drive excellent claim outcomes. It stays focused on reviewing underwriting actions in portfolios that do not meet its risk appetite and lower net premium and hence will either terminate or re-insure to improve risk/reward profile. Chubb expects third quarter investment income between $820-830 million.”
CB has been the topic of a number of other reports. 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 report on Thursday, June 16th. Credit Suisse Group AG set a $136.00 price target on Chubb Corp. and gave the company a “buy” rating in a report on Monday, September 12th. Citigroup Inc. reiterated a “neutral” rating on shares of Chubb Corp. in a report on Tuesday, June 21st. 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 report on Monday, July 11th. They noted that the move was a valuation call. Finally, MKM Partners reiterated a “buy” rating and issued a $150.00 price target (up from $140.00) on shares of Chubb Corp. in a report on Friday, July 15th. Two investment analysts have rated the stock with a sell rating, three have given a hold rating and ten have assigned a buy rating to the stock. Chubb Corp. has a consensus rating of “Buy” and a consensus target price of $131.14.
Shares of Chubb Corp. (NYSE:CB) opened at 124.59 on Wednesday. The company has a market capitalization of $57.94 billion, a P/E ratio of 20.64 and a beta of 1.00. Chubb Corp. has a 12-month low of $100.11 and a 12-month high of $131.00. The firm has a 50-day moving average price of $126.20 and a 200 day moving average price of $124.57.
Chubb Corp. (NYSE:CB) last released its quarterly earnings data on Tuesday, July 26th. The company reported $2.25 EPS for the quarter, missing the consensus estimate of $2.45 by $0.20. Chubb Corp. had a return on equity of 9.92% and a net margin of 9.35%. The firm had revenue of $7.64 billion for the quarter, compared to analysts’ expectations of $7.40 billion. During the same quarter in the previous year, the business earned $2.08 earnings per share. The company’s revenue for the quarter was up 59.7% compared to the same quarter last year. On average, equities research analysts predict that Chubb Corp. will post $9.57 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 21st. Stockholders 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 annualized dividend and a dividend yield of 2.20%. Chubb Corp.’s dividend payout ratio (DPR) is presently 44.37%.
In other Chubb Corp. news, Director Robert W. Scully purchased 10,725 shares of the business’s stock in a transaction that occurred on Wednesday, August 3rd. The stock was purchased at an average price of $125.95 per share, for a total transaction of $1,350,813.75. Following the purchase, the director now directly owns 5,779 shares in the company, valued at $727,865.05. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Sean Ringsted sold 15,570 shares of Chubb Corp. stock in a transaction dated 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 transaction, the executive vice president now owns 169,762 shares of the company’s stock, valued at approximately $21,220,250. The disclosure for this sale can be found here. 0.43% of the stock is owned by insiders.
Institutional investors have recently made changes to their positions in the stock. Norges Bank acquired a new position in shares of Chubb Corp. during the fourth quarter valued at $33,774,000. Mn Services Vermogensbeheer B.V. purchased a new stake in Chubb Corp. during the first quarter valued at approximately $1,204,000. GRATRY & Co LLC purchased a new stake in Chubb Corp. during the first quarter valued at approximately $3,956,000. Nisa Investment Advisors L.L.C. raised its stake in Chubb Corp. by 11.9% in the first quarter. Nisa Investment Advisors L.L.C. now owns 121,701 shares of the company’s stock valued at $14,501,000 after buying an additional 12,953 shares during the period. Finally, Virginia Retirement System purchased a new stake in Chubb Corp. during the first quarter valued at approximately $5,387,000. Hedge funds and other institutional investors own 87.25% of the company’s stock.
About Chubb Corp.
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