Davis Selected Advisers Trims Holdings in Chubb Limited (NYSE:CB)

Key Points

• Davis Selected Advisers reduced its holdings in Chubb Limited by 0.8% in the first quarter, now owning 1,086,389 shares valued at approximately $328 million.
• Chubb announced an increase in its quarterly dividend from $0.91 to $0.97 per share, representing an annual yield of 1.4% and a dividend payout ratio of 17.12%.
• Analysts have given Chubb a consensus rating of "Hold," with a price target reduction from $317 to $300, reflecting varied sentiment about the company's performance.

Davis Selected Advisers cut its position in Chubb Limited (NYSE:CB - Free Report) by 0.8% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,086,389 shares of the financial services provider's stock after selling 8,613 shares during the quarter. Chubb comprises about 1.9% of Davis Selected Advisers' portfolio, making the stock its 19th biggest holding. Davis Selected Advisers owned approximately 0.27% of Chubb worth $328,079,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Brighton Jones LLC lifted its position in shares of Chubb by 12.8% during the 4th quarter. Brighton Jones LLC now owns 1,945 shares of the financial services provider's stock valued at $537,000 after acquiring an additional 221 shares during the period. Revolve Wealth Partners LLC acquired a new stake in shares of Chubb in the fourth quarter valued at about $205,000. Bank Pictet & Cie Europe AG acquired a new stake in shares of Chubb in the fourth quarter valued at about $1,320,000. Dynamic Technology Lab Private Ltd bought a new stake in shares of Chubb during the 4th quarter valued at about $297,000. Finally, FIL Ltd boosted its position in shares of Chubb by 131.0% during the 4th quarter. FIL Ltd now owns 11,160 shares of the financial services provider's stock valued at $3,084,000 after purchasing an additional 6,329 shares in the last quarter. 83.81% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other news, insider John J. Lupica sold 5,513 shares of the business's stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $290.06, for a total value of $1,599,100.78. Following the completion of the sale, the insider 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO John W. Keogh sold 9,794 shares of the business'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 directly owned 247,538 shares of the company's stock, valued at approximately $72,526,158.62. This trade represents a 3.81% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 100,390 shares of company stock valued at $29,163,135 over the last 90 days. Insiders own 0.77% of the company's stock.

Chubb Price Performance

Chubb stock traded up $1.99 during midday trading on Friday, hitting $271.30. 961,053 shares of the company's stock were exchanged, compared to its average volume of 2,191,179. Chubb Limited has a 52-week low of $252.16 and a 52-week high of $306.91. The stock has a 50-day moving average price of $280.01 and a two-hundred day moving average price of $282.42. 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 company has a market cap of $108.16 billion, a P/E ratio of 11.97, a PEG ratio of 3.07 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 EPS for the quarter, topping 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 business 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 revenue was up 6.3% on a year-over-year basis. On average, equities research analysts forecast that Chubb Limited will post 21.52 earnings per share for the current year.

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

Chubb Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, July 3rd. Shareholders of record on Friday, June 13th were paid a dividend of $0.97 per share. This represents a $3.88 annualized dividend and a yield of 1.4%. This is an increase from Chubb's previous quarterly dividend of $0.91. The ex-dividend date of this dividend was Friday, June 13th. Chubb's dividend payout ratio is presently 17.12%.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Hsbc Global Res lowered Chubb from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 1st. Piper Sandler restated a "neutral" rating and issued a $283.00 target price (down previously from $335.00) on shares of Chubb in a report on Thursday, July 24th. Morgan Stanley boosted their price objective on Chubb from $280.00 to $300.00 and gave the stock an "equal weight" rating in a research report on Monday, May 19th. Deutsche Bank Aktiengesellschaft downgraded Chubb from a "buy" rating to a "hold" rating and set a $303.00 price objective for the company. in a research note on Tuesday, May 20th. Finally, Evercore ISI set a $312.00 target price on Chubb in a research report on Wednesday, July 23rd. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $301.50.

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.