Chubb Corp. (CB) Downgraded by Zacks Investment Research
Chubb Corp. (NYSE:CB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday.
According to Zacks, “Chubb stands a good chance of taking leadership in the P&C space benefiting from complementary products and services. Its 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. Notably, Chubb has raised its integration expense savings to $800 million, from the previous guidance of $750 million. However, the company’s exposure to cat loss (estimates $200 million cat loss in fourth quarter from Hurricane Matthew) and a low interest rate environment are headwinds. Rising expenses and eroding margins are concerns. With respect to quarterly results, Chubb’s third-quarter 2016 earnings outperformed the Zacks Consensus Estimate and also improved from the prior-year quarter, primarily driven by the growth in net premiums written, as well as net investment income.”
Several other research analysts have also recently issued reports on the stock. Barclays PLC raised their target price on shares of Chubb Corp. from $133.00 to $139.00 and gave the stock an “overweight” rating in a report on Friday, September 30th. Credit Suisse Group AG set a $136.00 target price on shares of Chubb Corp. and gave the stock a “buy” rating in a report on Monday, September 12th. Morgan Stanley raised their target price on shares of Chubb Corp. from $136.00 to $140.00 and gave the stock an “overweight” rating in a report on Thursday, July 28th. Finally, MKM Partners restated a “buy” rating and issued a $150.00 target price (up previously from $140.00) on shares of Chubb Corp. in a report on Friday, July 15th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and ten have given a buy rating to the stock. Chubb Corp. presently has an average rating of “Buy” and a consensus price target of $132.07.
Shares of Chubb Corp. (NYSE:CB) opened at 126.46 on Friday. The company has a market cap of $58.84 billion, a price-to-earnings ratio of 16.94 and a beta of 0.86. Chubb Corp. has a 52 week low of $106.82 and a 52 week high of $131.00. The firm’s 50-day moving average is $124.86 and its 200-day moving average is $125.59.
Chubb Corp. (NYSE:CB) last issued its earnings results on Tuesday, October 25th. The company reported $2.88 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.58 by $0.30. Chubb Corp. had a net margin of 11.20% and a return on equity of 9.88%. The firm had revenue of $7.57 billion for the quarter, compared to analysts’ expectations of $7.36 billion. During the same quarter last year, the business earned $2.37 earnings per share. The business’s revenue was down 4.0% on a year-over-year basis. Equities research analysts predict that Chubb Corp. will post $9.79 earnings per share for the current year.
In related news, Director David H. Sidwell purchased 830 shares of the stock in a transaction dated Monday, September 26th. The stock was purchased at an average price of $124.90 per share, with a total value of $103,667.00. Following the transaction, the director now directly owns 7,386 shares in the company, valued at $922,511.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.43% of the stock is owned by insiders.
A number of large investors have recently added to or reduced their stakes in the company. EULAV Asset Management increased its stake in Chubb Corp. by 39.7% in the third quarter. EULAV Asset Management now owns 52,800 shares of the company’s stock valued at $6,634,000 after buying an additional 15,000 shares during the last quarter. Nomura Asset Management Co. Ltd. increased its stake in Chubb Corp. by 7.0% in the third quarter. Nomura Asset Management Co. Ltd. now owns 62,101 shares of the company’s stock valued at $7,803,000 after buying an additional 4,070 shares during the last quarter. Profund Advisors LLC increased its stake in Chubb Corp. by 2.8% in the third quarter. Profund Advisors LLC now owns 11,752 shares of the company’s stock valued at $1,477,000 after buying an additional 317 shares during the last quarter. Checchi Capital Advisers LLC increased its stake in Chubb Corp. by 23.8% in the third quarter. Checchi Capital Advisers LLC now owns 3,696 shares of the company’s stock valued at $464,000 after buying an additional 710 shares during the last quarter. Finally, Epoch Investment Partners Inc. increased its stake in Chubb Corp. by 12.1% in the third quarter. Epoch Investment Partners Inc. now owns 982,652 shares of the company’s stock valued at $123,471,000 after buying an additional 106,173 shares during the last quarter. Institutional investors own 87.11% of the company’s stock.
Chubb Corp. Company Profile
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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