Citigroup Begins Coverage on Chubb (NYSE:CB)

Key Points

• Citigroup has initiated coverage on Chubb, assigning a "buy" rating and setting a price target of $326.00, which suggests a potential upside of 20.76% from the current price.
• Despite Citigroup's optimistic outlook, other analysts have issued mixed evaluations, with several reducing their price targets and ratings, resulting in an average rating of "Hold" for Chubb.
• Chubb's recent quarterly earnings exceeded expectations, with reported earnings of $6.14 EPS compared to a consensus estimate of $5.84, alongside a 6.3% year-over-year revenue increase.

Analysts at Citigroup initiated coverage on shares of Chubb (NYSE:CB - Get Free Report) in a research note issued to investors on Wednesday, MarketBeat Ratings reports. The firm set a "buy" rating and a $326.00 price target on the financial services provider's stock. Citigroup's price target indicates a potential upside of 20.76% from the company's current price.

CB has been the topic of a number of other research reports. UBS Group cut their target price on shares of Chubb from $304.00 to $292.00 and set a "neutral" rating on the stock in a research report on Monday, July 28th. Wells Fargo & Company cut their target price on shares of Chubb from $285.00 to $267.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 24th. Cantor Fitzgerald initiated coverage on shares of Chubb in a report on Tuesday. They issued a "neutral" rating and a $290.00 price target on the stock. Piper Sandler restated a "neutral" rating and issued a $283.00 price target (down from $335.00) on shares of Chubb in a report on Thursday, July 24th. Finally, Hsbc Global Res cut shares of Chubb from a "strong-buy" rating to a "hold" rating in a report on Friday, August 1st. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating, five have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $302.31.

Chubb Trading Down 0.4%

Shares of CB opened at $269.96 on Wednesday. Chubb has a twelve month low of $252.16 and a twelve month high of $306.91. The company has a market cap of $107.63 billion, a P/E ratio of 11.91, a P/E/G ratio of 3.07 and a beta of 0.53. The company has a current ratio of 0.28, a quick ratio of 0.28 and a debt-to-equity ratio of 0.18. The company's fifty day simple moving average is $278.90 and its 200-day simple moving average is $282.48.

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

Chubb announced that its board has approved a share repurchase plan on Thursday, May 15th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows 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 board believes its shares are undervalued.

Insider Activity

In related news, Director Michael Corbat acquired 425 shares of the company's stock in a transaction that occurred on Friday, July 25th. The stock was purchased at an average price of $269.80 per share, for a total transaction of $114,665.00. Following the transaction, the director owned 2,450 shares in the company, valued at $661,010. This trade represents a 20.99% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, COO John W. Keogh sold 85,083 shares of Chubb stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $290.24, for a total value of $24,694,489.92. Following the sale, the chief operating officer owned 237,728 shares of the company's stock, valued at approximately $68,998,174.72. This represents a 26.36% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 100,390 shares of company stock worth $29,163,135 over the last 90 days. 0.86% of the stock is currently owned by corporate insiders.

Institutional Trading of Chubb

A number of hedge funds have recently added to or reduced their stakes in the business. Quadrant Capital Group LLC lifted its stake in shares of Chubb by 37.0% in the 2nd quarter. Quadrant Capital Group LLC now owns 13,133 shares of the financial services provider's stock valued at $3,805,000 after purchasing an additional 3,550 shares in the last quarter. Vinva Investment Management Ltd lifted its stake in shares of Chubb by 29.1% in the 2nd quarter. Vinva Investment Management Ltd now owns 18,082 shares of the financial services provider's stock valued at $5,156,000 after purchasing an additional 4,081 shares in the last quarter. Vermillion & White Wealth Management Group LLC lifted its stake in shares of Chubb by 3.8% in the 2nd quarter. Vermillion & White Wealth Management Group LLC now owns 1,324 shares of the financial services provider's stock valued at $384,000 after purchasing an additional 48 shares in the last quarter. Echo45 Advisors LLC lifted its stake in shares of Chubb by 4.2% in the 2nd quarter. Echo45 Advisors LLC now owns 957 shares of the financial services provider's stock valued at $277,000 after purchasing an additional 39 shares in the last quarter. Finally, Employees Retirement System of Texas lifted its stake in shares of Chubb by 1.2% in the 2nd quarter. Employees Retirement System of Texas now owns 68,462 shares of the financial services provider's stock valued at $19,835,000 after purchasing an additional 815 shares in the last quarter. 83.81% of the stock is owned by institutional investors and hedge funds.

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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