Travelers Companies (NYSE:TRV) Hits New 12-Month High – Should You Buy?

The Travelers Companies, Inc. (NYSE:TRV) shares reached a new 52-week high on Thursday . The company traded as high as $374.00 and last traded at $372.6150, with a volume of 2475764 shares traded. The stock had previously closed at $369.63.

Travelers Companies News Summary

Here are the key news stories impacting Travelers Companies this week:

• Positive Sentiment: Analyst coverage remained constructive, with Morgan Stanley and other firms highlighting potential upside, while a recent Zacks note said Travelers’ shares hit a 52-week high and questioned whether the run can continue. Morgan Stanley Forecasts Strong Price Appreciation for Travelers Companies (NYSE:TRV) Stock The Travelers Companies, Inc. (TRV) Hit a 52 Week High, Can the Run Continue?
• Positive Sentiment: AM Best assigned an “a+” issue credit rating with a stable outlook to Travelers’ new $750 million senior unsecured notes, signaling confidence in the company’s credit quality and access to capital. AM Best Assigns Issue Credit Rating to The Travelers Companies, Inc. New Senior Unsecured Notes
• Positive Sentiment: Travelers priced $750 million of 4.95% senior notes due 2031, which adds funding for general corporate purposes and appears manageable given the company’s strong balance sheet. Travelers Companies Prices $750 Million Senior Notes Offering
• Neutral Sentiment: Mizuho raised its price target to $343 from $324 but kept a neutral rating, suggesting the stock may have already moved ahead of near-term fundamentals. Mizuho price target update
• Negative Sentiment: Reports that several top Travelers executives sold company stock could weigh on sentiment, even if the transactions were routine. Top Travelers Executives Quietly Unload Millions in Company Stock
• Negative Sentiment: Deutsche Bank and UBS both reiterated hold-type views, reinforcing that some analysts see limited upside after the recent rally. Deutsche Bank Sticks to Its Hold Rating for Travelers Companies (TRV) UBS Releases a Hold Rating on Travelers Companies (TRV)

Analysts Set New Price Targets

TRV has been the subject of a number of analyst reports. Morgan Stanley lifted their price target on Travelers Companies from $290.00 to $330.00 and gave the company an “underweight” rating in a research note on Tuesday. Wells Fargo & Company raised their target price on Travelers Companies from $295.00 to $334.00 and gave the company an “equal weight” rating in a report on Thursday, July 9th. Cantor Fitzgerald lifted their target price on Travelers Companies from $335.00 to $360.00 and gave the company an “overweight” rating in a research report on Thursday, July 9th. Mizuho upped their price target on Travelers Companies from $324.00 to $343.00 and gave the stock a “neutral” rating in a report on Friday. Finally, UBS Group increased their price target on Travelers Companies from $314.00 to $350.00 and gave the company a “neutral” rating in a research report on Wednesday, July 8th. Three equities research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have issued a Hold rating and five have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $354.26.

Travelers Companies Trading Up 2.9%

The company has a debt-to-equity ratio of 0.27, a current ratio of 0.33 and a quick ratio of 0.35. The company has a market capitalization of $80.80 billion, a P/E ratio of 10.38, a price-to-earnings-growth ratio of 3.76 and a beta of 0.46. The firm has a fifty day moving average price of $322.06 and a 200-day moving average price of $304.48.

Travelers Companies (NYSE:TRV) last issued its quarterly earnings results on Friday, July 17th. The insurance provider reported $10.04 EPS for the quarter, topping analysts’ consensus estimates of $5.41 by $4.63. The business had revenue of $12.15 billion for the quarter, compared to analyst estimates of $11.26 billion. Travelers Companies had a return on equity of 25.41% and a net margin of 16.95%.Travelers Companies’s quarterly revenue was up .3% compared to the same quarter last year. During the same period last year, the company posted $6.51 earnings per share. On average, equities research analysts anticipate that The Travelers Companies, Inc. will post 32.15 earnings per share for the current year.

Travelers Companies Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Thursday, September 10th will be paid a dividend of $1.25 per share. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Thursday, September 10th. Travelers Companies’s payout ratio is presently 13.39%.

Insider Buying and Selling

In other Travelers Companies news, insider Avrohom J. Kess sold 6,735 shares of Travelers Companies stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $308.78, for a total value of $2,079,633.30. Following the sale, the insider owned 48,737 shares of the company’s stock, valued at approximately $15,049,010.86. The trade was a 12.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Vice Chairman William H. Heyman sold 1,557 shares of the business’s stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $310.64, for a total transaction of $483,666.48. Following the completion of the transaction, the insider owned 259,590 shares in the company, valued at approximately $80,639,037.60. The trade was a 0.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 18,292 shares of company stock valued at $5,639,800. 1.39% of the stock is owned by insiders.

Institutional Investors Weigh In On Travelers Companies

Several large investors have recently modified their holdings of the stock. Berman McAleer LLC raised its stake in shares of Travelers Companies by 3.5% in the second quarter. Berman McAleer LLC now owns 894 shares of the insurance provider’s stock valued at $295,000 after buying an additional 30 shares during the period. Willner & Heller LLC grew its stake in shares of Travelers Companies by 2.7% during the 2nd quarter. Willner & Heller LLC now owns 1,206 shares of the insurance provider’s stock worth $398,000 after acquiring an additional 32 shares during the period. Spinnaker Trust increased its holdings in Travelers Companies by 1.7% in the 1st quarter. Spinnaker Trust now owns 1,938 shares of the insurance provider’s stock worth $565,000 after acquiring an additional 33 shares during the last quarter. Cim LLC increased its holdings in Travelers Companies by 0.4% in the 4th quarter. Cim LLC now owns 8,145 shares of the insurance provider’s stock worth $2,363,000 after acquiring an additional 34 shares during the last quarter. Finally, Avalon Trust Co raised its stake in Travelers Companies by 0.4% in the 1st quarter. Avalon Trust Co now owns 8,784 shares of the insurance provider’s stock valued at $2,562,000 after acquiring an additional 35 shares during the period. Hedge funds and other institutional investors own 82.45% of the company’s stock.

About Travelers Companies

The Travelers Companies, Inc (NYSE: TRV) is a leading provider of property and casualty insurance products and services. The company underwrites a broad range of commercial and personal insurance lines, offering coverage designed to protect individuals, small and midsize businesses, and large corporate clients against property loss, liability, and other operational risks. Travelers is known for combining underwriting, claims management and risk control services to help clients prevent losses and recover when incidents occur.

On the commercial side, Travelers writes primary and specialty coverages including property, general liability, commercial auto, workers’ compensation, professional and management liability, surety and inland marine.