Caisse DE Depot ET Placement DU Quebec Trims Stock Position in Chubb Limited $CB

Key Points

• Caisse DE Depot ET Placement DU Quebec has reduced its stake in Chubb Limited by 13.3%, owning 466,740 shares valued at approximately $140.95 million as of the latest SEC filing.
• Chubb recently announced a $5 billion share buyback program, indicating confidence that its stock is undervalued.
• Analysts have adjusted their price targets for Chubb; HSBC downgraded the stock from a "buy" to a "hold" rating, with the average target now set at $302.00 per share.

Caisse DE Depot ET Placement DU Quebec lessened its stake in shares of Chubb Limited (NYSE:CB - Free Report) by 13.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 466,740 shares of the financial services provider's stock after selling 71,563 shares during the quarter. Caisse DE Depot ET Placement DU Quebec owned approximately 0.12% of Chubb worth $140,951,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Legato Capital Management LLC boosted its position in Chubb by 120.9% during the 1st quarter. Legato Capital Management LLC now owns 10,200 shares of the financial services provider's stock valued at $3,080,000 after acquiring an additional 5,582 shares in the last quarter. Davis Rea LTD. bought a new stake in Chubb during the 1st quarter valued at $5,117,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Chubb by 15.4% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,753,719 shares of the financial services provider's stock valued at $760,853,000 after acquiring an additional 366,559 shares in the last quarter. First Horizon Advisors Inc. boosted its position in Chubb by 3.3% during the 1st quarter. First Horizon Advisors Inc. now owns 43,280 shares of the financial services provider's stock valued at $13,070,000 after acquiring an additional 1,375 shares in the last quarter. Finally, Golden State Wealth Management LLC boosted its position in Chubb by 9.1% during the 1st quarter. Golden State Wealth Management LLC now owns 549 shares of the financial services provider's stock valued at $166,000 after acquiring an additional 46 shares in the last quarter. Institutional investors own 83.81% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have issued reports on CB shares. Morgan Stanley dropped their target price on Chubb from $300.00 to $295.00 and set an "equal weight" rating on the stock in a research report on Monday, August 18th. Evercore ISI set a $312.00 price objective on Chubb in a research report on Wednesday, July 23rd. Citigroup assumed coverage on Chubb in a research report on Wednesday, August 13th. They issued a "buy" rating and a $326.00 price objective for the company. Keefe, Bruyette & Woods raised their price objective on Chubb from $314.00 to $324.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 9th. Finally, Cantor Fitzgerald raised Chubb to a "hold" rating in a research report on Wednesday, August 13th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $302.00.

Insider Buying and Selling

In related news, insider John J. Lupica sold 5,513 shares of the firm's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $290.06, for a total value of $1,599,100.78. Following the completion of the transaction, the insider owned 91,180 shares in the company, valued at $26,447,670.80. This trade represents a 5.70% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Michael Corbat bought 425 shares of Chubb stock in a transaction that occurred on Friday, July 25th. The stock was purchased at an average price of $269.80 per share, with a total value of $114,665.00. Following the purchase, the director directly owned 2,450 shares in the company, valued at $661,010. The trade was a 20.99% increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.77% of the stock is currently owned by company insiders.

Chubb Stock Up 0.4%

Shares of Chubb stock traded up $0.96 during trading on Wednesday, reaching $272.96. The company's stock had a trading volume of 1,557,226 shares, compared to its average volume of 1,751,724. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.18. The company has a market cap of $108.83 billion, a price-to-earnings ratio of 12.04, a P/E/G ratio of 3.07 and a beta of 0.53. Chubb Limited has a 1-year low of $252.16 and a 1-year high of $306.91. The company has a 50-day simple moving average of $276.11 and a two-hundred day simple moving average of $282.55.

Chubb (NYSE:CB - Get Free Report) last issued its earnings results on Tuesday, July 22nd. The financial services provider reported $6.14 earnings per share (EPS) for the quarter, topping 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% on a year-over-year basis. During the same quarter last year, the business posted $5.38 EPS. As a group, equities analysts forecast that Chubb Limited will post 21.52 earnings per share for the current year.

Chubb Announces Dividend

The company also recently announced 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 is Friday, September 12th. This represents a $3.88 dividend on an annualized basis and a yield of 1.4%. Chubb's dividend payout ratio (DPR) is 17.12%.

Chubb declared that its board has authorized a share buyback plan on Thursday, May 15th that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the financial services provider to buy up to 4.3% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

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.