Capital World Investors Reduces Position in Chubb Limited $CB

Key Points

• Capital World Investors trimmed its stake in Chubb by 16.9% in Q3, selling 2,024,131 shares and leaving 9,978,787 shares (about 2.54% of the company) valued at roughly $2.82 billion.
• Notable insider selling: EVP Timothy Boroughs sold 27,817 shares (~$9.23M) and CEO Evan Greenberg sold 15,060 shares (~$4.99M), leaving corporate insiders with about 0.86% ownership.
• Analyst views are mixed with a consensus "Hold" and an average target of $340.81; Chubb also reported an EPS beat of $7.52 versus $6.33 consensus while trading near $324 with a 52-week range of $264.10–$345.67.

Capital World Investors trimmed its holdings in Chubb Limited (NYSE:CB - Free Report) by 16.9% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 9,978,787 shares of the financial services provider's stock after selling 2,024,131 shares during the quarter. Capital World Investors owned about 2.54% of Chubb worth $2,816,196,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Norges Bank purchased a new position in Chubb during the second quarter worth approximately $1,195,137,000. Bank of America Corp DE grew its holdings in Chubb by 11.6% in the 2nd quarter. Bank of America Corp DE now owns 4,929,858 shares of the financial services provider's stock valued at $1,428,278,000 after buying an additional 513,852 shares in the last quarter. London Co. of Virginia increased its stake in shares of Chubb by 211.0% in the 2nd quarter. London Co. of Virginia now owns 737,090 shares of the financial services provider's stock worth $213,559,000 after acquiring an additional 500,116 shares during the last quarter. Altrinsic Global Advisors LLC increased its stake in shares of Chubb by 46.9% in the 2nd quarter. Altrinsic Global Advisors LLC now owns 1,392,846 shares of the financial services provider's stock worth $403,535,000 after acquiring an additional 444,557 shares during the last quarter. Finally, Troy Asset Management Ltd raised its holdings in shares of Chubb by 89.1% during the 2nd quarter. Troy Asset Management Ltd now owns 793,427 shares of the financial services provider's stock worth $229,872,000 after acquiring an additional 373,872 shares during the period. Institutional investors and hedge funds own 83.81% of the company's stock.

Insider Buying and Selling

In other Chubb news, EVP Timothy Alan Boroughs sold 27,817 shares of the stock in a transaction on Friday, February 6th. The stock was sold at an average price of $331.98, for a total transaction of $9,234,687.66. Following the sale, the executive vice president owned 11,810 shares in the company, valued at approximately $3,920,683.80. This represents a 70.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Evan G. Greenberg sold 15,060 shares of the business's stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $331.47, for a total value of $4,991,938.20. Following the completion of the transaction, the chief executive officer directly owned 511,576 shares of the company's stock, valued at approximately $169,572,096.72. This trade represents a 2.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.86% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Bank of America dropped their price target on shares of Chubb from $279.00 to $259.00 and set an "underperform" rating for the company in a research note on Friday, January 16th. Evercore upped their price objective on Chubb from $346.00 to $347.00 and gave the company an "outperform" rating in a report on Wednesday, February 4th. Cantor Fitzgerald increased their price objective on Chubb from $300.00 to $309.00 and gave the stock a "neutral" rating in a research report on Wednesday, January 14th. Jefferies Financial Group lifted their target price on Chubb from $326.00 to $333.00 and gave the company a "hold" rating in a research report on Thursday, February 5th. Finally, UBS Group reaffirmed a "neutral" rating and set a $340.00 price objective on shares of Chubb in a research report on Monday, February 9th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $340.81.

Chubb Stock Down 1.2%

Chubb stock opened at $323.95 on Tuesday. Chubb Limited has a fifty-two week low of $264.10 and a fifty-two week high of $345.67. The firm has a market capitalization of $126.39 billion, a price-to-earnings ratio of 12.59, a price-to-earnings-growth ratio of 2.06 and a beta of 0.46. The stock's fifty day moving average is $318.39 and its two-hundred day moving average is $298.28. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.27 and a current ratio of 0.27.

Chubb (NYSE:CB - Get Free Report) last released its quarterly earnings data on Tuesday, February 3rd. The financial services provider reported $7.52 EPS for the quarter, topping the consensus estimate of $6.33 by $1.19. The business had revenue of $2.08 billion for the quarter, compared to analyst estimates of $11.11 billion. Chubb had a net margin of 17.36% and a return on equity of 13.15%. The business's revenue for the quarter was up 8.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $6.02 EPS. Analysts predict that Chubb Limited will post 21.52 EPS for the current fiscal year.

Chubb Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, April 6th. Stockholders of record on Friday, March 13th will be paid a dividend of $0.97 per share. This represents a $3.88 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, March 13th. Chubb's dividend payout ratio (DPR) is 15.08%.

Chubb Company Profile

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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