Chubb (NYSE:CB) Downgraded to "Hold" Rating by HSBC

Key Points

• HSBC downgraded Chubb (NYSE:CB) from a "buy" rating to a "hold" rating with a price target of $300, indicating a potential upside of 12.79% from its current level.
• Chubb reported earnings of $6.14 per share for the last quarter, surpassing estimates, and revenue increased by 6.3% year-over-year to $14.20 billion.
• Chubb's Board of Directors has authorized a share repurchase plan to buy back $5 billion in stock, suggesting confidence in the company's value amidst a recent stock downturn.

Chubb (NYSE:CB - Get Free Report) was downgraded by equities researchers at HSBC from a "buy" rating to a "hold" rating in a report issued on Friday,Briefing.com Automated Import reports. They presently have a $300.00 price target on the financial services provider's stock. HSBC's target price suggests a potential upside of 12.79% from the company's current price.

CB has been the topic of several other reports. UBS Group lowered their target price on Chubb from $304.00 to $292.00 and set a "neutral" rating on the stock in a report on Monday. Deutsche Bank Aktiengesellschaft cut Chubb from a "buy" rating to a "hold" rating and set a $303.00 target price on the stock. in a report on Tuesday, May 20th. Keefe, Bruyette & Woods boosted their target price on Chubb from $314.00 to $324.00 and gave the stock an "outperform" rating in a report on Wednesday, July 9th. Morgan Stanley boosted their target price on Chubb from $280.00 to $300.00 and gave the stock an "equal weight" rating in a report on Monday, May 19th. Finally, JPMorgan Chase & Co. boosted their target price on Chubb from $300.00 to $307.00 and gave the stock a "neutral" rating in a report on Tuesday, April 8th. One research analyst has rated the stock with a sell rating, nine have issued a hold rating, four have assigned a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $301.50.

Chubb Trading Down 0.2%

CB stock opened at $265.99 on Friday. The company has a current ratio of 0.28, a quick ratio of 0.28 and a debt-to-equity ratio of 0.18. Chubb has a 12-month low of $252.16 and a 12-month high of $306.91. The stock has a market cap of $106.05 billion, a price-to-earnings ratio of 11.73, a PEG ratio of 3.03 and a beta of 0.53. The business's 50-day moving average is $282.61 and its 200 day moving average is $282.34.

Chubb (NYSE:CB - Get Free Report) last issued its earnings results on Tuesday, July 22nd. The financial services provider reported $6.14 earnings per share for the quarter, topping the consensus estimate of $5.84 by $0.30. The business had revenue of $14.20 billion for the quarter, compared to analysts' expectations of $12.53 billion. Chubb had a return on equity of 12.34% and a net margin of 16.08%. The business's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $5.38 EPS. On average, sell-side analysts anticipate that Chubb will post 21.52 EPS for the current fiscal year.

Chubb announced that its Board of Directors has initiated a share repurchase plan on Thursday, May 15th that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 4.3% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Chubb

In other news, Director Michael Corbat bought 425 shares of the business's stock in a transaction on Friday, July 25th. The shares were bought at an average price of $269.80 per share, with a total value of $114,665.00. Following the completion of the transaction, the director directly owned 2,450 shares in the company, valued at $661,010. This trade represents a 20.99% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider John J. Lupica sold 5,513 shares of the business's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $290.06, for a total value of $1,599,100.78. Following the completion of the sale, the insider directly owned 91,180 shares in the company, valued at approximately $26,447,670.80. The trade was a 5.70% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 100,390 shares of company stock valued at $29,163,135 over the last quarter. 0.77% of the stock is owned by company insiders.

Institutional Trading of Chubb

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ashton Thomas Private Wealth LLC increased its position in shares of Chubb by 12.8% during the second quarter. Ashton Thomas Private Wealth LLC now owns 1,906 shares of the financial services provider's stock worth $554,000 after acquiring an additional 217 shares during the period. Envestnet Asset Management Inc. increased its position in shares of Chubb by 3.8% during the second quarter. Envestnet Asset Management Inc. now owns 1,237,239 shares of the financial services provider's stock worth $358,453,000 after acquiring an additional 45,222 shares during the period. Resonant Capital Advisors LLC increased its position in shares of Chubb by 6.4% during the second quarter. Resonant Capital Advisors LLC now owns 1,968 shares of the financial services provider's stock worth $572,000 after acquiring an additional 119 shares during the period. Wealthfront Advisers LLC increased its position in shares of Chubb by 6.4% during the second quarter. Wealthfront Advisers LLC now owns 49,104 shares of the financial services provider's stock worth $14,226,000 after acquiring an additional 2,971 shares during the period. Finally, Oppenheimer Asset Management Inc. increased its position in shares of Chubb by 0.3% during the second quarter. Oppenheimer Asset Management Inc. now owns 117,186 shares of the financial services provider's stock worth $33,951,000 after acquiring an additional 320 shares during the period. Hedge funds and other institutional investors own 83.81% of the company's stock.

Chubb Company Profile

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.

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