Chubb (NYSE:CB) Hits New 1-Year High - Time to Buy?

Key Points

• Chubb shares hit a new 52-week high on Tuesday, trading as high as $362.78 and last changing hands near $361.96. The move came with relatively modest volume of 117,867 shares.
• Analysts remain mixed overall, even after several price-target increases. Chubb now has a consensus rating of “Hold” with an average target price of $350.81, though Goldman Sachs recently raised its target to $386 and kept a buy rating.
• The company also raised its quarterly dividend to $1.02 per share from $0.97, lifting the annualized payout to $4.08 and the yield to about 1.1%. Chubb’s payout ratio remains low at 14.41%, suggesting room for continued distributions.

Chubb Limited (NYSE:CB - Get Free Report) hit a new 52-week high during trading on Tuesday . The stock traded as high as $362.78 and last traded at $361.9560, with a volume of 117867 shares traded. The stock had previously closed at $356.53.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on CB shares. Wells Fargo & Company increased their price objective on Chubb from $321.00 to $333.00 and gave the company an "equal weight" rating in a research report on Thursday, April 23rd. BMO Capital Markets boosted their target price on shares of Chubb from $326.00 to $339.00 and gave the stock a "market perform" rating in a research report on Friday, April 24th. The Goldman Sachs Group boosted their target price on shares of Chubb from $362.00 to $386.00 and gave the stock a "buy" rating in a research report on Wednesday, July 1st. Wolfe Research increased their price target on shares of Chubb from $372.00 to $373.00 and gave the company an "outperform" rating in a report on Monday, April 6th. Finally, HSBC lowered shares of Chubb from a "buy" rating to a "hold" rating and raised their price target for the stock from $370.00 to $373.00 in a research report on Monday. Two investment analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Chubb presently has a consensus rating of "Hold" and an average target price of $350.81.

Chubb Price Performance

The company has a market cap of $141.12 billion, a price-to-earnings ratio of 12.86, a price-to-earnings-growth ratio of 1.85 and a beta of 0.40. The company has a fifty day moving average price of $327.40 and a two-hundred day moving average price of $323.13. The company has a current ratio of 0.28, a quick ratio of 0.28 and a debt-to-equity ratio of 0.20.

Chubb (NYSE:CB - Get Free Report) last issued its earnings results on Tuesday, March 31st. The financial services provider reported $6.82 EPS for the quarter. The business had revenue of $14.93 billion during the quarter. Chubb had a return on equity of 14.30% and a net margin of 18.58%. As a group, equities research analysts anticipate that Chubb Limited will post 26.77 EPS for the current fiscal year.

Chubb Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Friday, June 12th were issued a $1.02 dividend. This is a boost from Chubb's previous quarterly dividend of $0.97. The ex-dividend date of this dividend was Friday, June 12th. This represents a $4.08 annualized dividend and a yield of 1.1%. Chubb's payout ratio is presently 14.41%.

Insider Activity

In other news, COO John W. Keogh sold 23,000 shares of the firm's stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $321.51, for a total transaction of $7,394,730.00. Following the completion of the transaction, the chief operating officer directly owned 203,322 shares of the company's stock, valued at approximately $65,370,056.22. This trade represents a 10.16% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.37% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Stonebridge Financial Group LLC grew its stake in shares of Chubb by 2.9% in the 2nd quarter. Stonebridge Financial Group LLC now owns 16,936 shares of the financial services provider's stock valued at $5,771,000 after purchasing an additional 476 shares during the period. Versant Capital Management Inc lifted its position in shares of Chubb by 37.9% during the 2nd quarter. Versant Capital Management Inc now owns 1,763 shares of the financial services provider's stock worth $601,000 after buying an additional 485 shares during the period. CX Institutional lifted its position in shares of Chubb by 3.9% during the 2nd quarter. CX Institutional now owns 34,100 shares of the financial services provider's stock worth $11,619,000 after buying an additional 1,271 shares during the period. First County Bank CT boosted its stake in Chubb by 2.8% in the 2nd quarter. First County Bank CT now owns 1,822 shares of the financial services provider's stock valued at $621,000 after buying an additional 49 shares in the last quarter. Finally, Adelphi Trust Co boosted its stake in Chubb by 21.2% in the 2nd quarter. Adelphi Trust Co now owns 2,588 shares of the financial services provider's stock valued at $882,000 after buying an additional 453 shares in the last quarter. Institutional investors and hedge funds own 83.81% of the company's stock.

Chubb Company Profile

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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