Travelers Companies (TRV) Upgraded to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Travelers Companies (NYSE:TRV) from a hold rating to a buy rating in a report issued on Friday morning. The firm currently has $148.00 target price on the insurance provider’s stock.
According to Zacks, “Shares of Travelers have outperformed the industry in the last three months. Travelers boasts a strong market position as one of the leading writers of auto and homeowners’ insurance and commercial U.S. property-casualty insurance with impressive inorganic growth story. It has been generating sufficient capital and prudently uses to boost shareholders’ value and pursue growth initiatives. Solid retention and positive renewal rate change are positives. But, exposure to catastrophe losses pose headwind for underwriting results. It estimates cat losses from California wildfires in $340–$440 million range for the fourth quarter. Still low interest rate environment restricts desired improvement in investment results and expects $15–$20 million lower after-tax net investment income on a quarterly basis. A Zacks Rank #2 and an Earnings ESP of -15.30% makes surprise prediction difficult for fourth quarter.”
Other equities analysts have also recently issued reports about the stock. ValuEngine cut shares of Travelers Companies from a buy rating to a hold rating in a research report on Wednesday. UBS Group increased their price objective on shares of Travelers Companies from $131.00 to $139.00 and gave the stock a neutral rating in a research report on Wednesday, November 1st. Argus increased their price objective on shares of Travelers Companies from $139.00 to $145.00 and gave the stock a positive rating in a research report on Monday, October 23rd. They noted that the move was a valuation call. Wells Fargo & Co set a $125.00 price objective on shares of Travelers Companies and gave the stock a hold rating in a research report on Tuesday, November 14th. Finally, Keefe, Bruyette & Woods upgraded shares of Travelers Companies from a market perform rating to an outperform rating in a research report on Monday, October 16th. Four research analysts have rated the stock with a sell rating, nine have given a hold rating and eight have assigned a buy rating to the company. The stock has an average rating of Hold and an average price target of $132.95.
Travelers Companies (NYSE:TRV) last announced its quarterly earnings results on Thursday, October 19th. The insurance provider reported $0.91 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $2.10 by ($1.19). Travelers Companies had a net margin of 8.56% and a return on equity of 9.87%. The business had revenue of $6.66 billion during the quarter, compared to analyst estimates of $6.46 billion. During the same quarter last year, the company posted $2.40 earnings per share. The company’s revenue was up 4.2% compared to the same quarter last year. equities research analysts predict that Travelers Companies will post 6.74 earnings per share for the current year.
The business also recently declared a quarterly dividend, which was paid on Friday, December 29th. Shareholders of record on Monday, December 11th were issued a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a yield of 2.18%. The ex-dividend date of this dividend was Friday, December 8th. Travelers Companies’s payout ratio is 33.45%.
Travelers Companies announced that its board has approved a share repurchase program on Monday, September 11th that authorizes the company to repurchase shares. This repurchase authorization authorizes the insurance provider to purchase shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its stock is undervalued.
In other Travelers Companies news, EVP Maria Olivo sold 33,225 shares of the firm’s stock in a transaction on Wednesday, November 29th. The shares were sold at an average price of $134.18, for a total value of $4,458,130.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Michael Frederick Klein sold 20,077 shares of the firm’s stock in a transaction on Tuesday, November 21st. The stock was sold at an average price of $130.68, for a total transaction of $2,623,662.36. Following the completion of the sale, the executive vice president now owns 21,619 shares of the company’s stock, valued at $2,825,170.92. The disclosure for this sale can be found here. Insiders sold 55,302 shares of company stock valued at $7,347,753 over the last 90 days. Corporate insiders own 0.82% of the company’s stock.
Large investors have recently bought and sold shares of the business. Abner Herrman & Brock LLC lifted its stake in shares of Travelers Companies by 6.5% in the fourth quarter. Abner Herrman & Brock LLC now owns 62,879 shares of the insurance provider’s stock valued at $8,529,000 after buying an additional 3,853 shares in the last quarter. Atlantic Trust Group LLC lifted its stake in shares of Travelers Companies by 2.4% in the third quarter. Atlantic Trust Group LLC now owns 22,224 shares of the insurance provider’s stock valued at $2,722,000 after buying an additional 520 shares in the last quarter. Parametric Portfolio Associates LLC lifted its stake in shares of Travelers Companies by 2.4% in the third quarter. Parametric Portfolio Associates LLC now owns 1,561,234 shares of the insurance provider’s stock valued at $191,282,000 after buying an additional 36,402 shares in the last quarter. Steward Partners Investment Advisory LLC bought a new position in shares of Travelers Companies in the third quarter valued at $337,000. Finally, Crestwood Advisors Group LLC lifted its stake in shares of Travelers Companies by 1.1% in the third quarter. Crestwood Advisors Group LLC now owns 126,221 shares of the insurance provider’s stock valued at $15,465,000 after buying an additional 1,362 shares in the last quarter. Institutional investors and hedge funds own 78.49% of the company’s stock.
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Travelers Companies Company Profile
The Travelers Companies, Inc is a holding company. The Company’s segments include Business and International Insurance; Bond & Specialty Insurance, and Personal Insurance. Through its subsidiaries, it provides commercial and personal property and casualty insurance products and services. The Business and International Insurance segment offers property and casualty insurance and insurance related services to its clients, in the United States and in Canada, as well as in the United Kingdom, the Republic of Ireland, Brazil and throughout other parts of the world.
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