Hsbc Holdings PLC Raises Stake in The Travelers Companies, Inc. $TRV

Key Points

• HSBC Holdings increased its stake in Travelers Companies by 9.3% in Q4, bringing its holding to 865,178 shares worth about $251.1 million.
• Travelers reported strong quarterly results, with EPS of $7.71 beating estimates and revenue of $11.92 billion topping forecasts, even though revenue slipped 1.7% year over year.
• The company also raised its quarterly dividend to $1.25 per share from $1.10, while analysts currently rate the stock a consensus “Hold” with a target price around $309.07.

Hsbc Holdings PLC grew its position in The Travelers Companies, Inc. (NYSE:TRV - Free Report) by 9.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 865,178 shares of the insurance provider's stock after purchasing an additional 73,650 shares during the quarter. Hsbc Holdings PLC owned approximately 0.40% of Travelers Companies worth $251,117,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Vanguard Group Inc. raised its position in shares of Travelers Companies by 0.5% during the 4th quarter. Vanguard Group Inc. now owns 22,109,933 shares of the insurance provider's stock valued at $6,413,207,000 after purchasing an additional 110,311 shares during the period. State Street Corp boosted its holdings in Travelers Companies by 3.1% in the 4th quarter. State Street Corp now owns 16,000,457 shares of the insurance provider's stock worth $4,641,093,000 after buying an additional 486,861 shares during the period. Morgan Stanley boosted its holdings in Travelers Companies by 2.3% in the 4th quarter. Morgan Stanley now owns 3,793,750 shares of the insurance provider's stock worth $1,100,416,000 after buying an additional 85,298 shares during the period. Dimensional Fund Advisors LP raised its holdings in Travelers Companies by 2.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 3,361,112 shares of the insurance provider's stock valued at $974,993,000 after acquiring an additional 81,497 shares during the period. Finally, Norges Bank bought a new stake in Travelers Companies during the fourth quarter valued at about $723,339,000. 82.45% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently commented on TRV shares. Evercore restated an "outperform" rating on shares of Travelers Companies in a research report on Friday, April 17th. JPMorgan Chase & Co. raised Travelers Companies from an "underweight" rating to a "neutral" rating and lifted their target price for the company from $316.00 to $322.00 in a research note on Tuesday, May 26th. Piper Sandler boosted their price target on Travelers Companies from $329.00 to $340.00 and gave the stock an "overweight" rating in a report on Tuesday, May 26th. Brean Capital assumed coverage on Travelers Companies in a research note on Thursday, March 12th. They issued a "neutral" rating for the company. Finally, Wells Fargo & Company increased their price objective on shares of Travelers Companies from $285.00 to $305.00 and gave the company an "equal weight" rating in a report on Thursday, April 9th. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $309.07.

Insiders Place Their Bets

In other news, EVP Michael Frederick Klein sold 10,000 shares of the business's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $307.65, for a total value of $3,076,500.00. Following the sale, the executive vice president directly owned 45,125 shares in the company, valued at $13,882,706.25. The trade was a 18.14% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Vice Chairman William H. Heyman sold 1,557 shares of the company's stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $310.64, for a total transaction of $483,666.48. Following the sale, the insider owned 259,590 shares in the company, valued at $80,639,037.60. This represents a 0.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 37,573 shares of company stock worth $11,504,146. Insiders own 1.39% of the company's stock.

Travelers Companies Stock Down 0.1%

NYSE TRV opened at $307.48 on Friday. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.35 and a current ratio of 0.35. The company has a market capitalization of $65.38 billion, a P/E ratio of 9.15, a P/E/G ratio of 2.78 and a beta of 0.48. The Travelers Companies, Inc. has a one year low of $249.19 and a one year high of $313.12. The stock has a 50 day moving average price of $301.35 and a 200-day moving average price of $294.99.

Travelers Companies (NYSE:TRV - Get Free Report) last posted its earnings results on Thursday, April 16th. The insurance provider reported $7.71 earnings per share for the quarter, beating analysts' consensus estimates of $6.80 by $0.91. The firm had revenue of $11.92 billion during the quarter, compared to analyst estimates of $11.11 billion. Travelers Companies had a net margin of 15.54% and a return on equity of 24.06%. Travelers Companies's revenue for the quarter was down 1.7% compared to the same quarter last year. During the same period last year, the firm posted $1.91 earnings per share. As a group, equities analysts predict that The Travelers Companies, Inc. will post 28 EPS for the current fiscal year.

Travelers Companies Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Wednesday, June 10th will be paid a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Wednesday, June 10th. This is an increase from Travelers Companies's previous quarterly dividend of $1.10. Travelers Companies's dividend payout ratio is 14.88%.

Travelers Companies Company Profile

The Travelers Companies, Inc NYSE: TRV is a leading provider of property and casualty insurance products and services. The company underwrites a broad range of commercial and personal insurance lines, offering coverage designed to protect individuals, small and midsize businesses, and large corporate clients against property loss, liability, and other operational risks. Travelers is known for combining underwriting, claims management and risk control services to help clients prevent losses and recover when incidents occur.

On the commercial side, Travelers writes primary and specialty coverages including property, general liability, commercial auto, workers' compensation, professional and management liability, surety and inland marine.

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