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 research note issued to investors on Tuesday. The brokerage currently has a $142.00 price target on the stock. Zacks Investment Research’s price objective suggests a potential upside of 12.08% from the company’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.”
Several other equities analysts have also commented on the stock. Barclays PLC upped their price target on shares of Chubb Corp. from $133.00 to $139.00 and gave the stock an “overweight” rating in a research report on Friday, September 30th. Credit Suisse Group AG set a $136.00 price target on shares of Chubb Corp. and gave the stock a “buy” rating in a research report on Monday, September 12th. William Blair lowered shares of Chubb Corp. from a “market perform” rating to an “underperform” rating in a research report on Thursday, November 17th. Goldman Sachs Group Inc. lowered shares of Chubb Corp. from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $140.00 to $133.00 in a research report on Tuesday, November 15th. Finally, Morgan Stanley upped their price target on shares of Chubb Corp. from $136.00 to $140.00 and gave the stock an “overweight” rating in a research report on Thursday, July 28th. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating and twelve have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of $132.07.
Chubb Corp. (NYSE:CB) opened at 126.69 on Tuesday. The firm has a market cap of $58.95 billion, a PE ratio of 16.97 and a beta of 0.86. Chubb Corp. has a 12 month low of $106.82 and a 12 month high of $131.00. The firm’s 50-day moving average is $125.15 and its 200-day moving average is $126.09.
Chubb Corp. (NYSE:CB) last released its earnings results on Tuesday, October 25th. The company reported $2.88 earnings per share for the quarter, beating 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 earned $7.57 billion during the quarter, compared to analyst estimates of $7.36 billion. During the same quarter in the previous year, the firm earned $2.37 earnings per share. The firm’s revenue for the quarter was down 4.0% compared to the same quarter last year. Equities analysts expect that Chubb Corp. will post $9.79 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 20th. Shareholders of record on Friday, December 30th will be paid a dividend of $0.69 per share. This represents a $2.76 dividend on an annualized basis and a yield of 2.18%. Chubb Corp.’s dividend payout ratio is presently 36.90%.
In related news, Director David H. Sidwell purchased 830 shares of Chubb Corp. stock in a transaction dated Monday, September 26th. The stock was acquired at an average cost of $124.90 per share, with a total value of $103,667.00. Following the completion of the transaction, the director now directly owns 7,386 shares of the company’s stock, valued at $922,511.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Sean Ringsted sold 4,000 shares of the stock in a transaction that occurred on Wednesday, November 23rd. The stock was sold at an average price of $126.50, for a total transaction of $506,000.00. Following the completion of the sale, the executive vice president now directly owns 150,192 shares of the company’s stock, valued at $18,999,288. The disclosure for this sale can be found here. 0.43% of the stock is currently owned by insiders.
Several hedge funds have recently bought and sold shares of CB. Pathstone Family Office LLC raised its stake in Chubb Corp. by 47.8% in the second quarter. Pathstone Family Office LLC now owns 773 shares of the company’s stock worth $101,000 after buying an additional 250 shares during the period. Assetmark Inc. raised its stake in Chubb Corp. by 87.8% in the third quarter. Assetmark Inc. now owns 909 shares of the company’s stock worth $114,000 after buying an additional 425 shares during the period. Enterprise Financial Services Corp raised its stake in Chubb Corp. by 1.8% in the third quarter. Enterprise Financial Services Corp now owns 941 shares of the company’s stock worth $118,000 after buying an additional 17 shares during the period. Motco raised its stake in Chubb Corp. by 3.5% in the second quarter. Motco now owns 915 shares of the company’s stock worth $120,000 after buying an additional 31 shares during the period. Finally, FNY Managed Accounts LLC raised its stake in Chubb Corp. by 31.6% in the second quarter. FNY Managed Accounts LLC now owns 987 shares of the company’s stock worth $129,000 after buying an additional 237 shares during the period. 86.30% of the stock is owned by institutional investors and hedge funds.
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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