Chubb (NYSE:CB) Lowered to "Hold" Rating by Hsbc Global Res

Key Points

• Chubb's stock rating was downgraded by HSBC Global Research from "strong-buy" to "hold," with a new price target set at $300.
• The company's last earnings report showed an EPS of $6.14, surpassing analysts' expectations and reflecting a 6.3% year-over-year revenue growth.
• Chubb initiated a $5 billion stock buyback plan, indicating the board's belief that the stock is undervalued.

Chubb (NYSE:CB - Get Free Report) was downgraded by research analysts at Hsbc Global Res from a "strong-buy" rating to a "hold" rating in a research report issued on Friday,Zacks.com reports.

CB has been the topic of several other reports. Wells Fargo & Company reduced their price target 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. HSBC lowered Chubb from a "buy" rating to a "hold" rating and reduced their price target for the stock from $317.00 to $300.00 in a research report on Friday. Jefferies Financial Group raised their price target on Chubb from $307.00 to $308.00 and gave the stock a "hold" rating in a research report on Friday, April 11th. Raymond James Financial restated a "strong-buy" rating on shares of Chubb in a research report on Thursday, April 24th. Finally, UBS Group reduced their price target on Chubb from $304.00 to $292.00 and set a "neutral" rating on the stock in a research report on Monday, July 28th. One analyst has rated the stock with a sell rating, ten have assigned a hold rating, four have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $301.50.

Chubb Stock Up 0.5%

NYSE CB opened at $267.40 on Friday. The stock has a fifty day moving average of $282.23 and a 200-day moving average of $282.35. The stock has a market capitalization of $106.61 billion, a P/E ratio of 11.80, a price-to-earnings-growth ratio of 3.02 and a beta of 0.53. Chubb has a 52 week low of $252.16 and a 52 week high of $306.91. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.28 and a current ratio of 0.28.

Chubb (NYSE:CB - Get Free Report) last released its earnings results on Tuesday, July 22nd. The financial services provider reported $6.14 EPS for the quarter, beating the consensus estimate of $5.84 by $0.30. The company had revenue of $14.20 billion during 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% on a year-over-year basis. During the same period last year, the firm earned $5.38 EPS. On average, equities research analysts forecast that Chubb will post 21.52 EPS for the current year.

Chubb announced that its board has initiated a stock buyback 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 reacquire up to 4.3% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Chubb

In other Chubb 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 value of $2,869,544.06. Following the sale, the chief operating officer owned 247,538 shares of the company's stock, valued at $72,526,158.62. This trade represents a 3.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Michael Corbat purchased 425 shares of the company's stock in a transaction on Friday, July 25th. The stock was purchased at an average cost of $269.80 per share, for a total transaction of $114,665.00. Following the purchase, the director directly owned 2,450 shares in the company, valued at approximately $661,010. This trade represents a 20.99% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have sold 100,390 shares of company stock valued at $29,163,135 in the last 90 days. 0.77% of the stock is currently owned by company insiders.

Institutional Trading of Chubb

Several hedge funds and other institutional investors have recently modified their holdings of CB. Brighton Jones LLC grew its stake in Chubb by 12.8% in the fourth quarter. Brighton Jones LLC now owns 1,945 shares of the financial services provider's stock valued at $537,000 after purchasing an additional 221 shares in the last quarter. Revolve Wealth Partners LLC bought a new position in Chubb in the fourth quarter valued at approximately $205,000. Bank Pictet & Cie Europe AG bought a new position in Chubb in the fourth quarter valued at approximately $1,320,000. Arete Wealth Advisors LLC grew its stake in Chubb by 53.0% in the fourth quarter. Arete Wealth Advisors LLC now owns 1,068 shares of the financial services provider's stock valued at $295,000 after purchasing an additional 370 shares in the last quarter. Finally, Annis Gardner Whiting Capital Advisors LLC grew its stake in Chubb by 15.3% in the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 527 shares of the financial services provider's stock valued at $146,000 after purchasing an additional 70 shares in the last quarter. Institutional investors and hedge funds 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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