Morgan Stanley Lowers Chubb (NYSE:CB) Price Target to $295.00

Chubb (NYSE:CB) had its price objective trimmed by Morgan Stanley from $300.00 to $295.00 in a research note released on Monday morning,Benzinga reports. The brokerage currently has an equal weight rating on the financial services provider’s stock.

Other equities research analysts have also issued research reports about the stock. Piper Sandler reiterated a “neutral” rating and set a $283.00 price objective (down previously from $335.00) on shares of Chubb in a research note on Thursday, July 24th. Citigroup initiated coverage on Chubb in a research report on Wednesday, August 13th. They set a “buy” rating and a $326.00 price target on the stock. Hsbc Global Res lowered Chubb from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 1st. UBS Group lowered their price objective on Chubb from $304.00 to $292.00 and set a “neutral” rating for the company in a research note on Monday, July 28th. Finally, Cantor Fitzgerald upgraded Chubb to a “hold” rating in a research note on Wednesday, August 13th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $302.00.

Chubb Stock Performance

Chubb stock opened at $279.4320 on Monday. The company has a debt-to-equity ratio of 0.18, a current ratio of 0.28 and a quick ratio of 0.28. Chubb has a 12 month low of $252.16 and a 12 month high of $306.91. The company has a fifty day moving average price of $277.15 and a two-hundred day moving average price of $282.46. The company has a market cap of $111.41 billion, a PE ratio of 12.33, a P/E/G ratio of 3.09 and a beta of 0.53.

Chubb (NYSE:CB) last issued its earnings results on Tuesday, July 22nd. The financial services provider reported $6.14 earnings per share for the quarter, topping analysts’ consensus estimates of $5.84 by $0.30. Chubb had a net margin of 16.08% and a return on equity of 12.34%. The company had revenue of $14.20 billion for the quarter, compared to analysts’ expectations of $12.53 billion. During the same period in the prior year, the company earned $5.38 earnings per share. The firm’s revenue was up 6.3% compared to the same quarter last year. Research analysts expect that Chubb will post 21.52 earnings per share for the current year.

Chubb Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 3rd. Investors of record on Friday, September 12th will be given a $0.97 dividend. This represents a $3.88 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Friday, September 12th. Chubb’s dividend payout ratio is currently 17.12%.

Chubb declared that its Board of Directors has initiated a share buyback plan on Thursday, May 15th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the financial services provider to reacquire up to 4.3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Michael Corbat purchased 425 shares of the company’s stock in a transaction on Friday, July 25th. The shares were bought at an average cost of $269.80 per share, for a total transaction of $114,665.00. Following the transaction, the director owned 2,450 shares of the company’s stock, valued at $661,010. This represents a 20.99% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, COO John W. Keogh sold 9,794 shares of the stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $292.99, for a total transaction of $2,869,544.06. Following the completion of the transaction, the chief operating officer owned 247,538 shares of the company’s stock, valued at $72,526,158.62. This trade represents a 3.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.77% of the stock is owned by insiders.

Hedge Funds Weigh In On Chubb

Several hedge funds have recently modified their holdings of the company. Peoples Bank KS acquired a new stake in shares of Chubb in the first quarter valued at $25,000. Opal Wealth Advisors LLC bought a new stake in Chubb in the first quarter worth about $25,000. North Capital Inc. acquired a new stake in Chubb in the 1st quarter valued at about $26,000. IMA Advisory Services Inc. bought a new position in shares of Chubb during the 1st quarter valued at about $31,000. Finally, 1248 Management LLC bought a new position in shares of Chubb during the 1st quarter valued at about $31,000. 83.81% of the stock is currently owned by institutional investors and hedge funds.

About Chubb

Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, and casualty; and group accident and health insurance to large, middle market, and small commercial businesses.