Davis R M Inc. Increases Stock Position in Chubb Limited (NYSE:CB)

Key Points

• Davis R M Inc. increased its stake in Chubb Limited by 1.0%, owning a total of 247,962 shares valued at approximately $74.88 million, making it the 19th largest holding in their portfolio.
• Chubb's recent earnings report showed an EPS of $6.14, surpassing analysts' estimates of $5.84, with a revenue increase of 6.3% year-over-year to $14.20 billion.
• The company announced a quarterly dividend increase to $0.97 per share and initiated a $5.00 billion stock buyback program, indicating management's belief that the stock is undervalued.

Davis R M Inc. increased its stake in Chubb Limited (NYSE:CB - Free Report) by 1.0% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 247,962 shares of the financial services provider's stock after buying an additional 2,559 shares during the period. Chubb accounts for about 1.5% of Davis R M Inc.'s portfolio, making the stock its 19th largest position. Davis R M Inc. owned 0.06% of Chubb worth $74,882,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors also recently added to or reduced their stakes in the stock. Sunflower Bank N.A. grew its position in shares of Chubb by 4.4% in the 1st quarter. Sunflower Bank N.A. now owns 905 shares of the financial services provider's stock worth $273,000 after buying an additional 38 shares during the last quarter. Avantax Planning Partners Inc. grew 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 during the last quarter. Tandem Wealth Advisors LLC grew its position in shares of Chubb by 3.0% in the 4th quarter. Tandem Wealth Advisors LLC now owns 1,382 shares of the financial services provider's stock worth $382,000 after buying an additional 40 shares during the last quarter. HighPoint Advisor Group LLC grew its position in shares of Chubb by 0.5% in the 1st quarter. HighPoint Advisor Group LLC now owns 8,857 shares of the financial services provider's stock worth $2,524,000 after buying an additional 40 shares during the last quarter. Finally, Unison Advisors LLC grew its position in shares of Chubb by 0.3% in the 4th quarter. Unison Advisors LLC now owns 13,500 shares of the financial services provider's stock worth $3,742,000 after buying an additional 41 shares during the last quarter. Hedge funds and other institutional investors own 83.81% of the company's stock.

Insider Buying and Selling

In related news, COO John W. Keogh sold 9,794 shares of the business's stock in a transaction on 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 approximately $72,526,158.62. The trade was a 3.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider John J. Lupica sold 5,513 shares of the business's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $290.06, for a total transaction of $1,599,100.78. Following the completion of the sale, the insider directly owned 91,180 shares of the company's stock, valued at approximately $26,447,670.80. The trade was a 5.70% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 100,390 shares of company stock valued at $29,163,135. 0.77% of the stock is owned by corporate insiders.

Chubb Stock Performance

Shares of CB traded up $1.36 during trading hours on Friday, hitting $267.40. The stock had a trading volume of 3,214,985 shares, compared to its average volume of 2,088,874. 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 firm has a 50-day moving average price of $282.23 and a 200 day moving average price of $282.35. Chubb Limited has a fifty-two week low of $252.16 and a fifty-two week high of $306.91. The firm has a market capitalization of $106.61 billion, a price-to-earnings ratio of 11.80, a PEG ratio of 3.02 and a beta of 0.53.

Chubb (NYSE:CB - Get Free Report) last posted its earnings results on Tuesday, July 22nd. The financial services provider reported $6.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.84 by $0.30. Chubb had a net margin of 16.08% and a return on equity of 12.34%. The firm 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 posted $5.38 EPS. The business's revenue was up 6.3% compared to the same quarter last year. As a group, research analysts anticipate that Chubb Limited will post 21.52 EPS for the current year.

Chubb declared that its Board of Directors has authorized a stock 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 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 stock is undervalued.

Chubb Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, July 3rd. Investors of record on Friday, June 13th were issued a $0.97 dividend. This represents a $3.88 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend was Friday, June 13th. This is a boost from Chubb's previous quarterly dividend of $0.91. Chubb's payout ratio is presently 17.12%.

Analyst Upgrades and Downgrades

A number of research firms recently commented on CB. Deutsche Bank Aktiengesellschaft cut shares of Chubb from a "buy" rating to a "hold" rating and set a $303.00 target price for the company. in a research note on Tuesday, May 20th. Morgan Stanley lifted their target price on shares of Chubb from $280.00 to $300.00 and gave the stock an "equal weight" rating in a research note on Monday, May 19th. Raymond James Financial reiterated a "strong-buy" rating on shares of Chubb in a research note on Thursday, April 24th. UBS Group lowered their target price on shares of Chubb from $304.00 to $292.00 and set a "neutral" rating for the company in a research note on Monday, July 28th. Finally, Hsbc Global Res cut shares of Chubb from a "strong-buy" rating to a "hold" rating in a research note on Friday. One analyst has rated the stock with a sell rating, ten have issued a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Chubb has an average rating of "Hold" and a consensus price target of $301.50.

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.