Chubb Limited $CB is Berkshire Hathaway Inc's 8th Largest Position

Key Points

• Berkshire Hathaway raised its stake in Chubb by 15.9% in Q3 to 31,332,895 shares, making CB its 8th-largest holding; Berkshire owns about 7.96% of Chubb, valued at roughly $8.84 billion, and Chubb represents 3.3% of Berkshire’s investment portfolio.
• Insider sales: CEO Evan G. Greenberg sold 15,060 shares (~$4.99M) and EVP Timothy Boroughs sold 27,817 shares (~$9.23M), materially reducing their holdings; company insiders now own 0.77% of the stock.
• Financials and market view: Chubb beat quarterly EPS estimates ($7.52 vs. $6.33), announced a $0.97 quarterly dividend ($3.88 annualized, ~1.2% yield), and carries a MarketBeat consensus rating of "Hold" with a $340.81 target price.

Berkshire Hathaway Inc increased its holdings in Chubb Limited (NYSE:CB - Free Report) by 15.9% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 31,332,895 shares of the financial services provider's stock after purchasing an additional 4,299,111 shares during the quarter. Chubb accounts for 3.3% of Berkshire Hathaway Inc's investment portfolio, making the stock its 8th biggest position. Berkshire Hathaway Inc owned 7.96% of Chubb worth $8,843,710,000 as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. Mitchell & Pahl Private Wealth LLC increased its holdings in shares of Chubb by 0.5% in the third quarter. Mitchell & Pahl Private Wealth LLC now owns 7,381 shares of the financial services provider's stock worth $2,083,000 after buying an additional 35 shares during the period. Golden State Wealth Management LLC lifted its stake in shares of Chubb by 7.4% in the 3rd quarter. Golden State Wealth Management LLC now owns 525 shares of the financial services provider's stock valued at $148,000 after acquiring an additional 36 shares during the last quarter. Covestor Ltd boosted its holdings in Chubb by 26.1% during the 3rd quarter. Covestor Ltd now owns 179 shares of the financial services provider's stock valued at $51,000 after acquiring an additional 37 shares during the period. CENTRAL TRUST Co grew its position in Chubb by 1.0% during the 3rd quarter. CENTRAL TRUST Co now owns 3,573 shares of the financial services provider's stock worth $1,008,000 after acquiring an additional 37 shares during the last quarter. Finally, JT Stratford LLC grew its position in Chubb by 3.5% during the 2nd quarter. JT Stratford LLC now owns 1,127 shares of the financial services provider's stock worth $327,000 after acquiring an additional 38 shares during the last quarter. 83.81% of the stock is owned by institutional investors.

Insider Activity

In related news, CEO Evan G. Greenberg sold 15,060 shares of the stock in a transaction dated Thursday, February 5th. The shares were 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 $169,572,096.72. This represents a 2.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Timothy Alan Boroughs sold 27,817 shares of the firm's stock in a transaction dated 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 completion of the sale, the executive vice president owned 11,810 shares of the company's stock, valued at $3,920,683.80. This trade represents a 70.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.77% of the company's stock.

Analyst Ratings Changes

Several brokerages have weighed in on CB. Keefe, Bruyette & Woods boosted their price objective on Chubb from $355.00 to $373.00 and gave the company an "outperform" rating in a research report on Friday, February 6th. UBS Group restated a "neutral" rating and issued a $340.00 target price on shares of Chubb in a report on Monday, February 9th. Wells Fargo & Company lifted their target price on shares of Chubb from $305.00 to $322.00 and gave the stock an "equal weight" rating in a research note on Thursday, February 5th. JPMorgan Chase & Co. upped their price target on shares of Chubb from $327.00 to $330.00 and gave the company a "neutral" rating in a report on Wednesday, February 4th. Finally, Morgan Stanley set a $350.00 price target on shares of Chubb in a research report on Friday, January 16th. One 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 issued a Sell rating to the company. According to MarketBeat, Chubb presently has a consensus rating of "Hold" and a consensus target price of $340.81.

Chubb Price Performance

CB opened at $329.24 on Friday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.27 and a current ratio of 0.27. The stock has a market capitalization of $128.45 billion, a PE ratio of 12.80, a price-to-earnings-growth ratio of 2.06 and a beta of 0.46. The stock's 50 day moving average price is $319.55 and its 200-day moving average price is $299.58. Chubb Limited has a 52-week low of $264.10 and a 52-week high of $345.67.

Chubb (NYSE:CB - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The financial services provider reported $7.52 EPS for the quarter, topping analysts' consensus estimates of $6.33 by $1.19. The company had revenue of $2.08 billion during the quarter, compared to analyst estimates of $11.11 billion. Chubb had a return on equity of 13.15% and a net margin of 17.36%.The firm's revenue was up 8.9% on a year-over-year basis. During the same quarter last year, the firm posted $6.02 earnings per share. On average, equities research analysts predict that Chubb Limited will post 21.52 EPS for the current year.

Chubb Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, April 6th. Stockholders of record on Friday, March 13th will be given a $0.97 dividend. This represents a $3.88 annualized dividend 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 currently 15.08%.

About Chubb

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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