Canada Pension Plan Investment Board Reduces Holdings in Chubb Limited $CB

Key Points

• The Canada Pension Plan Investment Board reduced its holdings in Chubb Limited by 11.4% in the first quarter, owning 347,866 shares valued at $105.05 million after selling 44,943 shares.
• The company's quarterly earnings report showed a profit of $6.14 per share, surpassing estimates by $0.30, and a revenue of $14.20 billion, exceeding analyst expectations.
• Chubb has recently announced a quarterly dividend of $0.97 per share, reflecting an annualized dividend of $3.88 and a yield of 1.4%.

Canada Pension Plan Investment Board trimmed its stake in shares of Chubb Limited (NYSE:CB - Free Report) by 11.4% in the first quarter, according to the company in its most recent filing with the SEC. The firm owned 347,866 shares of the financial services provider's stock after selling 44,943 shares during the quarter. Canada Pension Plan Investment Board owned about 0.09% of Chubb worth $105,052,000 as of its most recent SEC filing.

Other institutional investors have also recently modified their holdings of the company. Peoples Bank KS bought a new stake in shares of Chubb during the 1st quarter worth $25,000. Opal Wealth Advisors LLC bought a new stake in shares of Chubb during the 1st quarter worth $25,000. North Capital Inc. bought a new stake in shares of Chubb during the 1st quarter worth $26,000. IMA Advisory Services Inc. bought a new stake in shares of Chubb during the 1st quarter worth $31,000. Finally, WPG Advisers LLC bought a new stake in shares of Chubb during the 1st quarter worth $33,000. 83.81% of the stock is currently owned by institutional investors.

Chubb Stock Performance

NYSE:CB traded up $1.25 during trading hours on Wednesday, reaching $278.06. The stock had a trading volume of 636,174 shares, compared to its average volume of 1,782,346. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.28 and a current ratio of 0.28. The stock has a 50 day simple moving average of $275.30 and a 200 day simple moving average of $282.91. Chubb Limited has a 12-month low of $252.16 and a 12-month high of $306.91. The stock has a market cap of $110.86 billion, a P/E ratio of 12.27, a price-to-earnings-growth ratio of 3.10 and a beta of 0.56.

Chubb (NYSE:CB - Get Free Report) last announced its quarterly earnings results on Tuesday, July 22nd. The financial services provider reported $6.14 earnings per share for the quarter, beating the consensus estimate of $5.84 by $0.30. Chubb had a return on equity of 12.34% and a net margin of 16.08%.The company had revenue of $14.20 billion during the quarter, compared to analysts' expectations of $12.53 billion. During the same period in the previous year, the business earned $5.38 earnings per share. The firm's quarterly revenue was up 6.3% compared to the same quarter last year. On average, research analysts forecast that Chubb Limited will post 21.52 EPS for the current fiscal year.

Chubb Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 3rd. Shareholders of record on Friday, September 12th will be issued a dividend of $0.97 per share. The ex-dividend date is Friday, September 12th. This represents a $3.88 dividend on an annualized basis and a dividend yield of 1.4%. Chubb's dividend payout ratio is 17.12%.

Chubb announced that its Board of Directors has initiated a stock repurchase plan on Thursday, May 15th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the financial services provider to buy up to 4.3% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Analyst Ratings Changes

A number of brokerages have issued reports on CB. Cantor Fitzgerald raised Chubb to a "hold" rating in a report on Wednesday, August 13th. UBS Group lowered their target price on Chubb from $304.00 to $292.00 and set a "neutral" rating for the company in a report on Monday, July 28th. Barclays cut Chubb from an "overweight" rating to an "equal weight" rating and lowered their target price for the stock from $321.00 to $298.00 in a report on Monday, July 7th. Wells Fargo & Company lowered their target price on Chubb from $285.00 to $267.00 and set an "equal weight" rating for the company in a report on Thursday, July 24th. Finally, Citigroup assumed coverage on Chubb in a report on Wednesday, August 13th. They issued a "buy" rating and a $326.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $302.00.

Insider Transactions at Chubb

In other Chubb news, COO John W. Keogh sold 9,794 shares of the firm's stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $292.99, for a total value of $2,869,544.06. Following the completion of 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider John J. Lupica sold 5,513 shares of Chubb stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $290.06, for a total transaction of $1,599,100.78. Following the transaction, the insider directly owned 91,180 shares in the company, valued at approximately $26,447,670.80. The trade was a 5.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.86% 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.