Chubb (NYSE:CB) Sees Large Volume Increase After Strong Earnings

Chubb Limited (NYSE:CB) shares saw strong trading volume on Wednesday following a stronger than expected earnings report. 1,282,306 shares were traded during trading, a decline of 25% from the previous session’s volume of 1,717,698 shares.The stock last traded at $342.8860 and had previously closed at $354.80.

The financial services provider reported $7.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.78 by $0.48. The firm had revenue of $14.71 billion for the quarter, compared to analysts’ expectations of $15.07 billion. Chubb had a return on equity of 14.30% and a net margin of 18.58%.The business’s revenue for the quarter was up 3.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $6.14 earnings per share.

Chubb Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Friday, June 12th were issued a $1.02 dividend. This represents a $4.08 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Friday, June 12th. This is a boost from Chubb’s previous quarterly dividend of $0.97. Chubb’s payout ratio is currently 14.41%.

Chubb News Summary

Here are the key news stories impacting Chubb this week:

• Positive Sentiment: Chubb reported Q2 EPS of $7.26, topping estimates, with core operating income up 14.6% and per-share core operating income up 18.2%, showing stronger-than-expected underwriting performance. Article Title
• Positive Sentiment: Property and casualty underwriting remained solid, with a combined ratio of 83.8% and P&C net premiums written up 3.0% year over year, which investors tend to view as evidence of disciplined pricing and profitable growth. Article Title
• Positive Sentiment: JPMorgan raised its price target on Chubb to $370 from $340, reinforcing confidence in the stock’s valuation after the earnings report. Article Title
• Neutral Sentiment: Revenue came in below Wall Street’s estimate despite year-over-year growth, suggesting mixed top-line execution even as profitability improved. Article Title
• Neutral Sentiment: Chubb also drew attention as a dividend stock and announced leadership changes at Tempest Re, but those items appear less likely to drive the stock today than the earnings beat. Article Title
• Negative Sentiment: Some commentary noted that Chubb’s revenue missed expectations, which may limit upside if investors focus more on premium growth and future margin trends than on the earnings beat alone. Article Title

Analysts Set New Price Targets

A number of brokerages have commented on CB. Citizens Jmp upped their price target on shares of Chubb from $365.00 to $400.00 and gave the company a “market outperform” rating in a research report on Friday, July 10th. Barclays set a $387.00 price target on Chubb in a research note on Tuesday, July 7th. Evercore reiterated an “outperform” rating and issued a $374.00 target price on shares of Chubb in a research note on Friday, July 10th. Weiss Ratings raised Chubb from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Monday, June 29th. Finally, Cantor Fitzgerald lifted their price objective on shares of Chubb from $318.00 to $337.00 and gave the stock a “neutral” rating in a research report on Thursday, July 9th. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Chubb currently has an average rating of “Hold” and a consensus price target of $359.09.

Insider Activity at Chubb

In other news, COO John W. Keogh sold 23,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $321.51, for a total value of $7,394,730.00. Following the completion of the transaction, the chief operating officer directly owned 203,322 shares in the company, valued at approximately $65,370,056.22. This trade represents a 10.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.37% of the company’s stock.

Institutional Trading of Chubb

A number of large investors have recently modified their holdings of the business. Spire Wealth Management grew its position in Chubb by 490.5% during the fourth quarter. Spire Wealth Management now owns 8,615 shares of the financial services provider’s stock valued at $2,689,000 after acquiring an additional 7,156 shares during the last quarter. Chesley Taft & Associates LLC increased its position in shares of Chubb by 7.4% in the fourth quarter. Chesley Taft & Associates LLC now owns 102,427 shares of the financial services provider’s stock valued at $31,970,000 after acquiring an additional 7,043 shares during the period. Pallas Capital Advisors LLC raised its position in Chubb by 42.3% during the 4th quarter. Pallas Capital Advisors LLC now owns 14,243 shares of the financial services provider’s stock valued at $4,446,000 after purchasing an additional 4,233 shares during the last quarter. Janney Montgomery Scott LLC raised its holdings in shares of Chubb by 1.7% during the first quarter. Janney Montgomery Scott LLC now owns 315,893 shares of the financial services provider’s stock valued at $102,959,000 after acquiring an additional 5,225 shares in the last quarter. Finally, waypoint wealth counsel raised its holdings in Chubb by 76.4% in the 4th quarter. waypoint wealth counsel now owns 4,118 shares of the financial services provider’s stock worth $1,285,000 after purchasing an additional 1,784 shares in the last quarter. Institutional investors own 83.81% of the company’s stock.

Chubb Stock Performance

The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.28 and a current ratio of 0.28. The firm has a market capitalization of $133.07 billion, a P/E ratio of 12.10, a PEG ratio of 1.83 and a beta of 0.40. The company has a 50-day simple moving average of $333.63 and a two-hundred day simple moving average of $326.34.

About Chubb

Chubb is a global property and casualty insurance company that underwrites a broad range of commercial and personal insurance products and related services. Its offerings include commercial property and casualty coverage, specialty liability, professional and management liability, cyber and technology insurance, marine and energy, surety, accident and health solutions, and high-net-worth personal lines such as homeowners, auto and valuables protection. Chubb serves businesses, individuals and institutions with tailored underwriting and risk-transfer solutions across multiple industry sectors.

In addition to core underwriting, Chubb provides risk engineering, loss control, claims management and risk consulting services intended to reduce loss severity and help clients manage exposures.