Chubb Corp. (CB) Rating Increased to Buy at Zacks Investment Research
Chubb Corp. (NYSE:CB) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday. The firm presently has a $142.00 price objective on the stock. Zacks Investment Research’s target price suggests a potential upside of 13.49% from the stock’s previous close.
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.”
A number of other equities research analysts have also recently issued reports on CB. Morgan Stanley upped their target price on Chubb Corp. from $136.00 to $140.00 and gave the stock an “overweight” rating in a research report on Thursday, July 28th. Credit Suisse Group AG set a $136.00 target price on Chubb Corp. and gave the stock a “buy” rating in a research report on Monday, September 12th. Finally, Barclays PLC upped their target price on Chubb Corp. from $133.00 to $139.00 and gave the stock an “overweight” rating in a research report on Friday, September 30th. One analyst has rated the stock with a sell rating, four have issued a hold rating and eleven have issued a buy rating to the stock. Chubb Corp. has an average rating of “Buy” and a consensus target price of $132.00.
Chubb Corp. (NYSE:CB) opened at 125.12 on Monday. Chubb Corp. has a 12-month low of $106.82 and a 12-month high of $131.00. The firm has a market cap of $58.22 billion, a P/E ratio of 16.76 and a beta of 0.86. The firm has a 50-day moving average of $124.84 and a 200-day moving average of $125.64.
Chubb Corp. (NYSE:CB) last announced its earnings results on Tuesday, October 25th. The company reported $2.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.58 by $0.30. The firm earned $7.57 billion during the quarter, compared to analysts’ expectations of $7.36 billion. Chubb Corp. had a return on equity of 9.88% and a net margin of 11.20%. The company’s revenue was down 4.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.37 earnings per share. On average, analysts expect that Chubb Corp. will post $9.79 EPS for the current year.
In related news, Director David H. Sidwell bought 830 shares of the company’s stock in a transaction dated Monday, September 26th. The shares were acquired at an average price of $124.90 per share, for a total transaction of $103,667.00. Following the completion of the transaction, the director now directly owns 7,386 shares in the company, valued at $922,511.40. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.43% of the stock is currently owned by company insiders.
Institutional investors have recently bought and sold shares of the stock. Nuveen Asset Management LLC raised its position in Chubb Corp. by 91.5% in the first quarter. Nuveen Asset Management LLC now owns 30,434 shares of the company’s stock valued at $3,626,000 after buying an additional 14,539 shares during the last quarter. National Planning Corp purchased a new position in Chubb Corp. during the first quarter valued at $308,000. Financial Strategy Network LLC purchased a new position in Chubb Corp. during the first quarter valued at $341,000. Samlyn Capital LLC purchased a new position in Chubb Corp. during the first quarter valued at $27,845,000. Finally, LPL Financial LLC raised its position in Chubb Corp. by 15.2% in the first quarter. LPL Financial LLC now owns 66,194 shares of the company’s stock valued at $7,808,000 after buying an additional 8,724 shares during the last quarter. Institutional investors own 87.08% 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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