Zacks Investment Research upgraded shares of The Travelers Companies, Inc. (NYSE:TRV) from a sell rating to a hold rating in a report published on Wednesday.
According to Zacks, “Travelers boast a strong market position as one of the leading writers of auto and homeowners’ insurance and commercial U.S. property-casualty insurance. Its inorganic growth story remains impressive. It has been generating sufficient capital, which it prudently deploys to enhance shareholders’ value. Solid retention and a positive renewal rate change are positives. Shares of Travelers have underperformed the industry year to date. Also, the company witnessed its 2017 and 2018 estimates moving south over the last 60 days. Competitive property and casualty insurance market can challenge Travelers' growth prospects. Low interest rate environment and adverse foreign currency movements continue to weigh on written premiums, while exposure to catastrophe losses pose headwind for underwriting results. Also, it estimates $15–$20 million lower after-tax net investment income on a quarterly basis.”
TRV has been the topic of a number of other reports. Citigroup Inc. increased their price objective on shares of The Travelers Companies from $140.00 to $150.00 and gave the company a buy rating in a research note on Thursday, July 13th. BidaskClub cut shares of The Travelers Companies from a hold rating to a sell rating in a research note on Monday, July 24th. Buckingham Research began coverage on shares of The Travelers Companies in a research note on Monday, September 11th. They issued a buy rating and a $136.00 price objective on the stock. Royal Bank Of Canada reissued a buy rating and issued a $135.00 price objective on shares of The Travelers Companies in a research note on Monday, August 21st. Finally, Bank of America Corporation cut shares of The Travelers Companies from a buy rating to a neutral rating and increased their price objective for the company from $120.62 to $129.44 in a research note on Monday, June 19th. Five equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and eight have issued a buy rating to the company’s stock. The stock has a consensus rating of Hold and an average price target of $126.18.
The Travelers Companies (TRV) opened at 122.04 on Wednesday. The firm has a market capitalization of $33.68 billion, a price-to-earnings ratio of 12.15 and a beta of 1.21. The company’s 50-day moving average is $124.75 and its 200-day moving average is $123.78. The Travelers Companies has a 52-week low of $103.45 and a 52-week high of $130.37.
The Travelers Companies (NYSE:TRV) last issued its quarterly earnings data on Thursday, July 20th. The insurance provider reported $1.92 EPS for the quarter, missing the Zacks’ consensus estimate of $2.07 by ($0.15). The business had revenue of $6.35 billion during the quarter, compared to analyst estimates of $6.31 billion. The Travelers Companies had a net margin of 10.15% and a return on equity of 11.68%. The Travelers Companies’s revenue was up 4.7% on a year-over-year basis. During the same period in the previous year, the company posted $2.20 earnings per share. Equities analysts predict that The Travelers Companies will post $7.67 earnings per share for the current year.
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The Travelers Companies announced that its board has initiated a stock buyback program on Monday, September 11th that authorizes the company to repurchase outstanding shares. This repurchase authorization authorizes the insurance provider to repurchase shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company’s board believes its shares are undervalued.
The business also recently announced a quarterly dividend, which will be paid on Friday, September 29th. Investors of record on Friday, September 8th will be given a $0.72 dividend. The ex-dividend date of this dividend is Thursday, September 7th. This represents a $2.88 annualized dividend and a dividend yield of 2.36%. The Travelers Companies’s dividend payout ratio is presently 28.77%.
In related news, EVP Andy F. Bessette sold 3,300 shares of the firm’s stock in a transaction that occurred on Tuesday, August 1st. The shares were sold at an average price of $128.50, for a total value of $424,050.00. Following the sale, the executive vice president now directly owns 10,000 shares of the company’s stock, valued at $1,285,000. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Kenneth Franklin Spence III sold 4,800 shares of the firm’s stock in a transaction that occurred on Monday, August 14th. The stock was sold at an average price of $128.73, for a total transaction of $617,904.00. The disclosure for this sale can be found here. Insiders sold 144,877 shares of company stock worth $18,539,282 over the last three months. Corporate insiders own 0.82% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. CWM LLC raised its holdings in The Travelers Companies by 4.9% in the second quarter. CWM LLC now owns 794 shares of the insurance provider’s stock valued at $100,000 after buying an additional 37 shares during the period. Westside Investment Management Inc. raised its holdings in The Travelers Companies by 361.1% in the first quarter. Westside Investment Management Inc. now owns 876 shares of the insurance provider’s stock valued at $106,000 after buying an additional 686 shares during the period. First Personal Financial Services raised its holdings in The Travelers Companies by 133.3% in the first quarter. First Personal Financial Services now owns 889 shares of the insurance provider’s stock valued at $107,000 after buying an additional 508 shares during the period. Tradewinds Capital Management LLC raised its holdings in The Travelers Companies by 1.1% in the second quarter. Tradewinds Capital Management LLC now owns 905 shares of the insurance provider’s stock valued at $115,000 after buying an additional 10 shares during the period. Finally, Intellectus Partners LLC raised its holdings in The Travelers Companies by 4.6% in the second quarter. Intellectus Partners LLC now owns 933 shares of the insurance provider’s stock valued at $118,000 after buying an additional 41 shares during the period. Hedge funds and other institutional investors own 77.48% of the company’s stock.
The 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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