Morgan Stanley Cuts Chubb (NYSE:CB) Price Target to $295.00

Key Points

• Morgan Stanley has lowered its price target for Chubb from $300.00 to $295.00, maintaining an "equal weight" rating, which suggests a potential upside of 7.60% from the stock's previous close.
• Chubb's recent quarterly earnings reported $6.14 EPS, exceeding estimates, with a revenue of $14.20 billion, reflecting a 6.3% year-over-year increase.
• Insider transactions show a notable 26.36% decrease in COO John W. Keogh's ownership after selling 85,083 shares for over $24 million.

Chubb (NYSE:CB - Free Report) had its price target reduced by Morgan Stanley from $300.00 to $295.00 in a research note published on Monday morning,Benzinga reports. Morgan Stanley currently has an equal weight rating on the financial services provider's stock.

Several other equities analysts have also issued reports on CB. Keefe, Bruyette & Woods boosted their price objective on Chubb from $314.00 to $324.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. Deutsche Bank Aktiengesellschaft downgraded Chubb from a "buy" rating to a "hold" rating and set a $303.00 price objective for the company. in a report on Tuesday, May 20th. Piper Sandler restated a "neutral" rating and issued a $283.00 price target (down previously from $335.00) on shares of Chubb in a research note on Thursday, July 24th. Cantor Fitzgerald upgraded Chubb to a "hold" rating in a research report on Wednesday, August 13th. Finally, Wells Fargo & Company lowered their price objective on Chubb from $285.00 to $267.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 24th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $302.00.

Chubb Price Performance

Shares of NYSE:CB traded up $5.6320 during midday trading on Monday, reaching $279.4320. The company's stock had a trading volume of 2,438,563 shares, compared to its average volume of 2,083,536. Chubb has a fifty-two week low of $252.16 and a fifty-two week high of $306.91. The company has a market capitalization of $111.41 billion, a P/E ratio of 12.33, a P/E/G ratio of 3.09 and a beta of 0.53. The company has a debt-to-equity ratio of 0.18, a current ratio of 0.28 and a quick ratio of 0.28. The business's fifty day simple moving average is $277.15 and its 200-day simple moving average is $282.46.

Chubb (NYSE:CB - Get Free Report) last announced its earnings results on Tuesday, July 22nd. The financial services provider reported $6.14 earnings per share for the quarter, beating analysts' consensus estimates of $5.84 by $0.30. The company had revenue of $14.20 billion during the quarter, compared to analyst estimates of $12.53 billion. Chubb had a return on equity of 12.34% and a net margin of 16.08%.The firm's quarterly revenue was up 6.3% compared to the same quarter last year. During the same period last year, the company posted $5.38 earnings per share. As a group, equities research analysts expect that Chubb will post 21.52 EPS for the current fiscal year.

Chubb Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 3rd. Investors of record on Friday, September 12th will be paid a $0.97 dividend. The ex-dividend date of this dividend is Friday, September 12th. This represents a $3.88 annualized dividend and a yield of 1.4%. Chubb's dividend payout ratio (DPR) is 17.12%.

Chubb announced that its board has authorized a stock repurchase plan on Thursday, May 15th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to purchase up to 4.3% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's leadership believes its stock is undervalued.

Insider Activity at Chubb

In other news, COO John W. Keogh sold 9,794 shares of Chubb stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $292.99, for a total transaction of $2,869,544.06. Following the sale, the chief operating officer directly owned 247,538 shares of the company's stock, valued at approximately $72,526,158.62. This trade represents a 3.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider John J. Lupica sold 5,513 shares of Chubb stock in a transaction dated 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 sale, the insider directly owned 91,180 shares in the company, valued at $26,447,670.80. The trade was a 5.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.77% of the stock is currently owned by insiders.

Institutional Trading of Chubb

A number of hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. boosted its stake in shares of Chubb by 0.6% during the second quarter. Vanguard Group Inc. now owns 36,738,895 shares of the financial services provider's stock valued at $10,643,993,000 after purchasing an additional 210,053 shares in the last quarter. GQG Partners LLC boosted its stake in shares of Chubb by 112.1% during the first quarter. GQG Partners LLC now owns 9,394,018 shares of the financial services provider's stock valued at $2,836,899,000 after purchasing an additional 4,964,298 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Chubb by 0.3% during the second quarter. Geode Capital Management LLC now owns 8,810,780 shares of the financial services provider's stock valued at $2,541,771,000 after purchasing an additional 30,721 shares in the last quarter. Demars Financial Group LLC raised its position in shares of Chubb by 16.4% during the first quarter. Demars Financial Group LLC now owns 6,238,632 shares of the financial services provider's stock worth $1,884,004,000 after acquiring an additional 878,177 shares during the last quarter. Finally, Bank of America Corp DE raised its position in shares of Chubb by 11.6% during the second quarter. Bank of America Corp DE now owns 4,929,858 shares of the financial services provider's stock worth $1,428,278,000 after acquiring an additional 513,852 shares during the last quarter. 83.81% of the stock is owned by institutional investors and hedge funds.

About Chubb

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.