Chubb Limited (NYSE:CB) is Oldfield Partners LLP's Largest Position

Key Points

• Oldfield Partners LLP has reduced its stake in Chubb Limited by 2.2%, now holding 206,700 shares, which represents 18.2% of its total holdings.
• Chubb's Board of Directors has authorized a $5 billion stock repurchase program, indicating management's belief that the stock is undervalued.
• The company recently increased its quarterly dividend to $0.97 per share, leading to an annualized dividend of $3.88 and a yield of 1.44%.

Oldfield Partners LLP lessened its position in Chubb Limited (NYSE:CB - Free Report) by 2.2% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 206,700 shares of the financial services provider's stock after selling 4,600 shares during the period. Chubb makes up 18.2% of Oldfield Partners LLP's investment portfolio, making the stock its largest holding. Oldfield Partners LLP owned 0.05% of Chubb worth $62,421,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in CB. Sunflower Bank N.A. boosted its position in Chubb by 4.4% during the first quarter. Sunflower Bank N.A. now owns 905 shares of the financial services provider's stock worth $273,000 after purchasing an additional 38 shares in the last quarter. Avantax Planning Partners Inc. boosted its position in shares of Chubb by 5.1% in the 1st quarter. Avantax Planning Partners Inc. now owns 783 shares of the financial services provider's stock worth $236,000 after buying an additional 38 shares in the last quarter. Tandem Wealth Advisors LLC grew its stake in Chubb by 3.0% in the 4th quarter. Tandem Wealth Advisors LLC now owns 1,382 shares of the financial services provider's stock valued at $382,000 after acquiring an additional 40 shares during the last quarter. HighPoint Advisor Group LLC increased its holdings in Chubb by 0.5% during the 1st quarter. HighPoint Advisor Group LLC now owns 8,857 shares of the financial services provider's stock valued at $2,524,000 after acquiring an additional 40 shares in the last quarter. Finally, Unison Advisors LLC raised its position in Chubb by 0.3% during the fourth quarter. Unison Advisors LLC now owns 13,500 shares of the financial services provider's stock worth $3,742,000 after acquiring an additional 41 shares during the last quarter. Hedge funds and other institutional investors own 83.81% of the company's stock.

Insider Activity

In other news, COO John W. Keogh sold 85,083 shares of the company's 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 completion of the sale, the chief operating officer owned 237,728 shares of the company's stock, valued at $68,998,174.72. This represents a 26.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Michael Corbat bought 425 shares of the stock in a transaction dated Friday, July 25th. The stock was bought at an average price of $269.80 per share, with a total value of $114,665.00. Following the purchase, the director owned 2,450 shares of the company's stock, valued at approximately $661,010. This represents a 20.99% increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders have sold 100,390 shares of company stock valued at $29,163,135. Company insiders own 0.86% of the company's stock.

Chubb Trading Down 1.2%

Shares of NYSE CB traded down $3.28 during trading on Monday, hitting $265.87. 2,541,489 shares of the company traded hands, compared to its average volume of 1,991,524. The firm has a market capitalization of $106.54 billion, a P/E ratio of 11.73, a P/E/G ratio of 3.07 and a beta of 0.53. The company has a quick ratio of 0.28, a current ratio of 0.34 and a debt-to-equity ratio of 0.21. The company has a 50-day moving average price of $284.54 and a 200-day moving average price of $282.46. Chubb Limited has a 1 year low of $252.16 and a 1 year high of $306.91.

Chubb (NYSE:CB - Get Free Report) last released its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported $6.14 EPS for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $12.53 billion. During the same period last year, the business posted $5.38 EPS. The company's quarterly revenue was up 6.3% compared to the same quarter last year. On average, equities analysts predict that Chubb Limited will post 21.52 EPS for the current year.

Chubb announced that its board has initiated a share repurchase plan on Thursday, May 15th that permits the company to buyback $5.00 billion in outstanding shares. This buyback authorization permits the financial services provider to reacquire up to 4.3% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Chubb Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 3rd. Stockholders of record on Friday, June 13th were given a $0.97 dividend. The ex-dividend date was Friday, June 13th. This represents a $3.88 annualized dividend and a dividend yield of 1.46%. This is a positive change from Chubb's previous quarterly dividend of $0.91. Chubb's dividend payout ratio is presently 17.12%.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the stock. Piper Sandler reissued a "neutral" rating and set a $283.00 price objective (down from $335.00) on shares of Chubb in a research note on Thursday. Evercore ISI set a $312.00 price objective on Chubb in a research note on Wednesday, July 23rd. Wells Fargo & Company cut their target price on shares of Chubb from $285.00 to $267.00 and set an "equal weight" rating for the company in a research note on Thursday. Jefferies Financial Group upped their target price on shares of Chubb from $307.00 to $308.00 and gave the company a "hold" rating in a report on Friday, April 11th. Finally, Morgan Stanley lifted their price target on shares of Chubb from $280.00 to $300.00 and gave the stock an "equal weight" rating in a report on Monday, May 19th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, five have assigned a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat, Chubb presently has a consensus rating of "Moderate Buy" and an average price target of $303.14.

Chubb 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.