Davis Asset Management L.P. Buys New Position in Chubb Limited $CB

Key Points

• Davis Asset Management acquired 494,556 Chubb shares worth approximately $168.5 million, making Chubb 4.3% of its portfolio and its seventh-largest holding. Institutional investors collectively own 83.81% of the company.
• Analyst sentiment remains mixed: Chubb has an average “Hold” rating and a consensus price target of $361, though Goldman Sachs raised its target to $386 and Evercore maintained an “Outperform” rating.
• Chubb beat quarterly earnings expectations with $7.26 in EPS versus the $6.77 consensus, while revenue increased 3.6% year over year. The company declared a quarterly dividend of $1.02 per share, representing a 1.2% yield.

Davis Asset Management L.P. acquired a new stake in Chubb Limited (NYSE:CB - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 494,556 shares of the financial services provider's stock, valued at approximately $168,515,000. Chubb accounts for 4.3% of Davis Asset Management L.P.'s portfolio, making the stock its 7th biggest holding. Davis Asset Management L.P. owned 0.13% of Chubb as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also modified their holdings of CB. Janney Montgomery Scott LLC boosted its stake in shares of Chubb by 1.7% in the 1st quarter. Janney Montgomery Scott LLC now owns 315,893 shares of the financial services provider's stock valued at $102,959,000 after purchasing an additional 5,225 shares in the last quarter. National Pension Service increased its position in shares of Chubb by 24.4% during the 4th quarter. National Pension Service now owns 1,148,474 shares of the financial services provider's stock worth $358,462,000 after purchasing an additional 225,515 shares in the last quarter. Harbour Investments Inc. increased its position in shares of Chubb by 884.1% during the 4th quarter. Harbour Investments Inc. now owns 9,959 shares of the financial services provider's stock worth $3,108,000 after purchasing an additional 8,947 shares in the last quarter. Bessemer Group Inc. lifted its holdings in Chubb by 16.8% during the 1st quarter. Bessemer Group Inc. now owns 16,639 shares of the financial services provider's stock valued at $5,424,000 after purchasing an additional 2,389 shares during the last quarter. Finally, Seizert Capital Partners LLC acquired a new position in Chubb in the fourth quarter valued at about $3,486,000. Institutional investors and hedge funds own 83.81% of the company's stock.

Analyst Ratings Changes

CB has been the topic of several research analyst reports. Weiss Ratings raised shares of Chubb from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Monday, June 29th. The Goldman Sachs Group lifted their target price on shares of Chubb from $362.00 to $386.00 and gave the company a "buy" rating in a research note on Wednesday, July 1st. Barclays set a $387.00 target price on Chubb in a report on Tuesday, July 7th. Piper Sandler increased their price target on Chubb from $340.00 to $374.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 15th. Finally, Evercore restated an "outperform" rating and set a $374.00 target price on shares of Chubb in a report on Friday, July 10th. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Chubb has an average rating of "Hold" and a consensus target price of $361.00.

Chubb Price Performance

CB opened at $341.15 on Friday. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.29 and a quick ratio of 0.29. The stock has a market capitalization of $131.62 billion, a P/E ratio of 12.07, a price-to-earnings-growth ratio of 1.65 and a beta of 0.39. The company's 50 day simple moving average is $345.88 and its 200-day simple moving average is $333.31. Chubb Limited has a one year low of $265.30 and a one year high of $365.91.

Chubb (NYSE:CB - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $7.26 earnings per share for the quarter, topping the consensus estimate of $6.77 by $0.49. Chubb had a net margin of 18.10% and a return on equity of 14.47%. The firm had revenue of $11.97 billion during the quarter, compared to analysts' expectations of $15.07 billion. During the same quarter in the previous year, the company posted $6.14 EPS. Chubb's revenue was up 3.6% on a year-over-year basis. Sell-side analysts anticipate that Chubb Limited will post 27.49 earnings per share for the current fiscal year.

Chubb Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 2nd. Stockholders of record on Friday, September 11th will be paid a dividend of $1.02 per share. This represents a $4.08 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, September 11th. Chubb's dividend payout ratio is 14.43%.

Insider Activity

In related news, COO John W. Keogh sold 23,000 shares of Chubb stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $321.51, for a total value of $7,394,730.00. Following the completion of the sale, the chief operating officer directly owned 203,322 shares in the company, valued at $65,370,056.22. This trade represents a 10.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Joseph F. Wayland sold 8,502 shares of the firm's stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $364.54, for a total transaction of $3,099,319.08. Following the completion of the transaction, the executive vice president directly owned 33,749 shares in the company, valued at $12,302,860.46. This trade represents a 20.12% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.37% of the stock is owned by company insiders.

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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