Chubb (NYSE:CB) Issues Earnings Results, Beats Estimates By $0.49 EPS

Key Points

• Chubb beat quarterly earnings estimates, reporting EPS of $7.26 versus analysts’ expectations of $6.77. The company also posted a solid net margin of 18.58% and return on equity of 14.30%.
• The stock rose on the news, trading up $2.51 to $355.04 during the session. Chubb’s share price has also been near the top of its 52-week range, reflecting recent strength in the name.
• Management continues to reward shareholders with a higher quarterly dividend of $1.02 per share, up from $0.97 previously. The company also has a low payout ratio of 14.41%, suggesting the dividend remains well covered.

Chubb (NYSE:CB - Get Free Report) posted its earnings results on Tuesday. The financial services provider reported $7.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.77 by $0.49, Zacks reports. Chubb had a net margin of 18.58% and a return on equity of 14.30%.

Chubb Price Performance

NYSE:CB traded up $2.51 during mid-day trading on Tuesday, hitting $355.04. 2,342,462 shares of the company's stock traded hands, compared to its average volume of 1,724,515. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.28 and a current ratio of 0.28. The firm's 50 day simple moving average is $332.98 and its 200 day simple moving average is $326.03. Chubb has a 1 year low of $264.10 and a 1 year high of $365.29. The company has a market cap of $137.71 billion, a PE ratio of 12.54, a price-to-earnings-growth ratio of 1.82 and a beta of 0.40.

Chubb Increases Dividend

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

Insider Buying and Selling at Chubb

In other news, COO John W. Keogh sold 23,000 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $321.51, for a total value of $7,394,730.00. Following the completion of the transaction, the chief operating officer owned 203,322 shares of the company's stock, valued at $65,370,056.22. The trade was a 10.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.37% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Axxcess Wealth Management LLC lifted its holdings in Chubb by 114.6% in the 4th quarter. Axxcess Wealth Management LLC now owns 4,762 shares of the financial services provider's stock worth $1,486,000 after buying an additional 2,543 shares in the last quarter. Corient Private Wealth LLC increased its stake in shares of Chubb by 10.3% in the fourth quarter. Corient Private Wealth LLC now owns 446,080 shares of the financial services provider's stock worth $129,248,000 after buying an additional 41,562 shares during the last quarter. Royal Capital Wealth Management LLC bought a new position in shares of Chubb during the fourth quarter worth about $211,000. Blue Sparrow LLC DE acquired a new position in shares of Chubb in the 4th quarter worth approximately $9,014,000. Finally, Mercer Global Advisors Inc. ADV raised its holdings in shares of Chubb by 23.6% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 100,848 shares of the financial services provider's stock worth $32,402,000 after purchasing an additional 19,237 shares during the period. Hedge funds and other institutional investors own 83.81% of the company's stock.

Wall Street Analyst Weigh In

CB has been the subject of several analyst reports. Bank of America decreased their price objective on Chubb from $286.00 to $271.00 and set an "underperform" rating for the company in a report on Tuesday, April 14th. UBS Group boosted their price target on Chubb from $340.00 to $369.00 and gave the company a "neutral" rating in a report on Wednesday, July 8th. BMO Capital Markets upped their price objective on Chubb from $326.00 to $339.00 and gave the stock a "market perform" rating in a research report on Friday, April 24th. Jefferies Financial Group cut their target price on shares of Chubb from $356.00 to $352.00 and set a "hold" rating for the company in a report on Thursday, April 23rd. Finally, The Goldman Sachs Group increased their price target on shares of Chubb from $362.00 to $386.00 and gave the stock a "buy" rating in a report on Wednesday, July 1st. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Chubb currently has an average rating of "Hold" and an average target price of $359.09.

Key Headlines Impacting Chubb

Here are the key news stories impacting Chubb this week:

• Positive Sentiment: Chubb reported strong Q2 results, with core operating income per share up 18.2% to $7.26, consolidated net premiums written up 3.6% to $14.7 billion, and a solid P&C combined ratio of 83.8%, signaling healthy underwriting profitability. Article Title
• Positive Sentiment: Management also highlighted continued growth in P&C premiums, with P&C net premiums written rising 3.0% year over year, or 6.3% excluding large-account and E&S property business, which may reassure investors about underlying demand. Article Title
• Positive Sentiment: Chubb had already been viewed favorably ahead of earnings, with analysts expecting higher Q2 results and the company recently announcing a raised dividend and a $7.5 billion buyback plan, both of which support the stock’s appeal to income investors. Article Title
• Neutral Sentiment: Chubb also announced leadership changes at Tempest Re, appointing James Wixtead as Executive Chairman and Michael O’Donnell as President, a move that appears operational rather than a major stock-moving catalyst. Article Title
• Neutral Sentiment: Barclays kept a Hold rating on Chubb, which suggests some analysts still see limited near-term upside even after the earnings beat. Article Title

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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