Forsta AP Fonden Reduces Stake in Chubb Limited (NYSE:CB)

Key Points

• Forsta AP Fonden has reduced its stake in Chubb Limited by 13% in the first quarter, selling 12,000 shares and holding a total of 80,600 shares worth approximately $24.34 million.
• Chubb recently reported earnings of $6.14 per share for the last quarter, surpassing analysts' expectations, and also announced an increase in its quarterly dividend from $0.91 to $0.97.
• The company approved a $5.00 billion stock repurchase program, signaling management's belief that its shares are undervalued.

Forsta AP Fonden reduced its holdings in Chubb Limited (NYSE:CB - Free Report) by 13.0% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 80,600 shares of the financial services provider's stock after selling 12,000 shares during the quarter. Forsta AP Fonden's holdings in Chubb were worth $24,340,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in the business. Nicholson Wealth Management Group LLC increased its holdings in Chubb by 2.1% in the first quarter. Nicholson Wealth Management Group LLC now owns 6,054 shares of the financial services provider's stock worth $1,828,000 after purchasing an additional 126 shares in the last quarter. Savvy Advisors Inc. increased its holdings in Chubb by 10.7% in the first quarter. Savvy Advisors Inc. now owns 1,074 shares of the financial services provider's stock worth $324,000 after purchasing an additional 104 shares in the last quarter. National Bank of Canada FI increased its holdings in Chubb by 13.0% in the first quarter. National Bank of Canada FI now owns 84,017 shares of the financial services provider's stock worth $25,401,000 after purchasing an additional 9,696 shares in the last quarter. Citigroup Inc. increased its holdings in Chubb by 79.0% in the first quarter. Citigroup Inc. now owns 631,628 shares of the financial services provider's stock worth $190,745,000 after purchasing an additional 278,697 shares in the last quarter. Finally, Wambolt & Associates LLC increased its holdings in shares of Chubb by 11.9% during the first quarter. Wambolt & Associates LLC now owns 1,774 shares of the financial services provider's stock valued at $535,000 after acquiring an additional 189 shares in the last quarter. 83.81% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Chubb

In other news, Director Michael Corbat purchased 425 shares of the company's stock in a transaction dated Friday, July 25th. The shares were purchased at an average price of $269.80 per share, with a total value of $114,665.00. Following the transaction, the director directly owned 2,450 shares of the company's stock, valued at approximately $661,010. This represents a 20.99% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider John J. Lupica sold 5,513 shares of the company's stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $290.06, for a total value of $1,599,100.78. Following the transaction, the insider directly owned 91,180 shares in the company, valued at $26,447,670.80. This represents a 5.70% decrease in their position. The disclosure for this sale can be found here. Insiders sold 100,390 shares of company stock worth $29,163,135 in the last quarter. 0.77% of the stock is currently owned by company insiders.

Chubb Stock Performance

CB stock traded up $1.99 during midday trading on Friday, hitting $271.30. The company's stock had a trading volume of 961,053 shares, compared to its average volume of 2,191,179. The stock has a market cap of $108.16 billion, a price-to-earnings ratio of 11.97, a PEG ratio of 3.07 and a beta of 0.53. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.18. The stock's 50-day moving average price is $280.01 and its 200 day moving average price is $282.42. 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 announced its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported $6.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.84 by $0.30. The firm had revenue of $14.20 billion during the quarter, compared to the consensus estimate of $12.53 billion. Chubb had a return on equity of 12.34% and a net margin of 16.08%. The business's revenue for the quarter was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $5.38 EPS. On average, equities analysts forecast that Chubb Limited will post 21.52 EPS for the current year.

Chubb declared that its Board of Directors has approved 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 shares through open market purchases. Shares buyback plans are often a sign that the company's board of directors believes its shares are undervalued.

Chubb Increases Dividend

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

Wall Street Analyst Weigh In

CB has been the subject of several recent research reports. Raymond James Financial restated a "strong-buy" rating on shares of Chubb in a report on Thursday, April 24th. Keefe, Bruyette & Woods boosted their price objective on Chubb from $314.00 to $324.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Wells Fargo & Company decreased their price objective on Chubb from $285.00 to $267.00 and set an "equal weight" rating for the company in a report on Thursday, July 24th. Morgan Stanley boosted their price objective on Chubb from $280.00 to $300.00 and gave the company an "equal weight" rating in a report on Monday, May 19th. Finally, Jefferies Financial Group boosted their price objective on Chubb from $307.00 to $308.00 and gave the company a "hold" rating in a report on Friday, April 11th. One investment analyst has rated the stock with a sell rating, ten have given a hold rating, four have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock 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.