Bank of America Lowers Chubb (NYSE:CB) Price Target to $271.00

Key Points

• Bank of America cut its price target on Chubb to $271 (from $286) and maintains an "underperform" rating, implying about a 16.8% downside from the prior close.
• Analysts are mixed overall: the consensus target is $345.90 with a prevailing "Hold" rating (1 Strong Buy, 9 Buy, 11 Hold, 1 Sell), while several firms have recently raised their targets, signaling divergent views.
• Chubb beat quarterly EPS estimates ($7.52 vs. $6.33) and its shares traded around $325.58 (down ~1.3%), while insiders have sold roughly 44,877 shares (~$14.9M) and institutional ownership is high at about 83.8%.

Chubb (NYSE:CB - Get Free Report) had its price target cut by equities research analysts at Bank of America from $286.00 to $271.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage currently has an "underperform" rating on the financial services provider's stock. Bank of America's price target would suggest a potential downside of 16.76% from the stock's previous close.

Other analysts also recently issued research reports about the stock. Piper Sandler boosted their target price on shares of Chubb from $283.00 to $319.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 4th. Citizens Jmp reissued a "market outperform" rating and set a $350.00 target price on shares of Chubb in a research report on Wednesday, February 4th. Evercore boosted their target price on shares of Chubb from $346.00 to $347.00 and gave the stock an "outperform" rating in a research report on Wednesday, February 4th. Barclays boosted their target price on shares of Chubb from $339.00 to $374.00 and gave the stock an "equal weight" rating in a research report on Tuesday, April 7th. Finally, Deutsche Bank Aktiengesellschaft boosted their target price on shares of Chubb from $304.00 to $330.00 and gave the stock a "hold" rating in a research report on Monday, March 23rd. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $345.90.

Chubb Stock Down 1.3%

Shares of Chubb stock traded down $4.40 on Tuesday, reaching $325.58. The stock had a trading volume of 500,868 shares, compared to its average volume of 1,697,565. The company has a 50 day moving average price of $328.92 and a 200 day moving average price of $307.27. The company has a quick ratio of 0.27, a current ratio of 0.27 and a debt-to-equity ratio of 0.20. Chubb has a 1 year low of $264.10 and a 1 year high of $345.67. The stock has a market capitalization of $127.05 billion, a P/E ratio of 12.65, a P/E/G ratio of 1.74 and a beta of 0.49.

Chubb (NYSE:CB - Get Free Report) last issued its quarterly earnings data on Tuesday, February 3rd. The financial services provider reported $7.52 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.33 by $1.19. Chubb had a net margin of 17.36% and a return on equity of 13.15%. The firm had revenue of $2.08 billion for the quarter, compared to the consensus estimate of $11.11 billion. During the same quarter in the previous year, the firm earned $6.02 EPS. The company's quarterly revenue was up 8.9% compared to the same quarter last year. As a group, equities research analysts forecast that Chubb will post 21.52 EPS for the current year.

Insider Buying and Selling at Chubb

In other Chubb news, Director Olivier Steimer sold 2,000 shares of Chubb stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $329.30, for a total transaction of $658,600.00. Following the completion of the sale, the director directly owned 25,468 shares in the company, valued at approximately $8,386,612.40. The trade was a 7.28% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, EVP Timothy Alan Boroughs sold 27,817 shares of Chubb stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $331.98, for a total transaction of $9,234,687.66. Following the sale, the executive vice president owned 11,810 shares of the company's stock, valued at approximately $3,920,683.80. The trade was a 70.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 44,877 shares of company stock worth $14,885,226. Company insiders own 0.77% of the company's stock.

Hedge Funds Weigh In On Chubb

Several large investors have recently made changes to their positions in the company. Berkshire Hathaway Inc raised its position in Chubb by 15.9% during the third quarter. Berkshire Hathaway Inc now owns 31,332,895 shares of the financial services provider's stock worth $8,843,710,000 after acquiring an additional 4,299,111 shares during the period. Norges Bank acquired a new position in Chubb during the fourth quarter worth $1,081,190,000. Price T Rowe Associates Inc. MD raised its position in Chubb by 25.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 14,947,799 shares of the financial services provider's stock worth $4,665,508,000 after acquiring an additional 3,049,987 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in Chubb during the fourth quarter worth $795,378,000. Finally, GQG Partners LLC raised its position in Chubb by 15.2% during the fourth quarter. GQG Partners LLC now owns 12,481,176 shares of the financial services provider's stock worth $3,895,627,000 after acquiring an additional 1,647,729 shares during the period. 83.81% of the stock is currently owned by institutional investors and hedge funds.

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.

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