Chubb Limited (NYSE:CB) Stock Position Reduced by Ontario Teachers Pension Plan Board

Key Points

• The Ontario Teachers Pension Plan Board significantly reduced its holdings in Chubb Limited by 99.9%, owning just 1,439 shares after selling over 1.4 million shares.
• Chubb reported earnings per share of $6.14 for the latest quarter, exceeding estimates and marking a 6.3% revenue increase year-over-year.
• The company also announced a $5.00 billion stock buyback program and increased its quarterly dividend to $0.97, indicating confidence in its stock valuation.

Ontario Teachers Pension Plan Board reduced its stake in shares of Chubb Limited (NYSE:CB - Free Report) by 99.9% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,439 shares of the financial services provider's stock after selling 1,423,181 shares during the quarter. Ontario Teachers Pension Plan Board's holdings in Chubb were worth $435,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds also recently modified their holdings of the company. Demars Financial Group LLC lifted its stake in shares of Chubb by 26,761.4% during the fourth quarter. Demars Financial Group LLC now owns 5,360,455 shares of the financial services provider's stock valued at $1,481,094,000 after buying an additional 5,340,499 shares during the period. GAMMA Investing LLC raised its stake in Chubb by 36,831.3% during the first quarter. GAMMA Investing LLC now owns 2,084,033 shares of the financial services provider's stock worth $629,357,000 after purchasing an additional 2,078,390 shares during the period. Royal Bank of Canada raised its stake in Chubb by 46.7% during the fourth quarter. Royal Bank of Canada now owns 4,406,052 shares of the financial services provider's stock worth $1,217,392,000 after purchasing an additional 1,403,545 shares during the period. Castlekeep Investment Advisors LLC purchased a new position in Chubb during the fourth quarter worth approximately $336,972,000. Finally, SG Americas Securities LLC raised its stake in Chubb by 1,243.9% during the first quarter. SG Americas Securities LLC now owns 680,456 shares of the financial services provider's stock worth $205,491,000 after purchasing an additional 629,822 shares during the period. Hedge funds and other institutional investors own 83.81% of the company's stock.

Insider Transactions at Chubb

In other Chubb news, Director Michael Corbat acquired 425 shares of the stock in a transaction dated Friday, July 25th. The shares were bought at an average price of $269.80 per share, with a total value of $114,665.00. Following the purchase, the director directly owned 2,450 shares of the company's stock, valued at approximately $661,010. This trade represents a 20.99% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider John J. Lupica sold 5,513 shares of Chubb stock in a transaction that occurred 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 transaction, the insider directly owned 91,180 shares in the company, valued at approximately $26,447,670.80. This trade represents a 5.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 100,390 shares of company stock valued at $29,163,135 in the last quarter. Insiders own 0.86% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on CB. UBS Group dropped their price objective on shares of Chubb from $304.00 to $292.00 and set a "neutral" rating for the company in a research report on Monday, July 28th. HSBC lowered shares of Chubb from a "buy" rating to a "hold" rating and lowered their price target for the company from $317.00 to $300.00 in a report on Friday, August 1st. Keefe, Bruyette & Woods raised their price target on shares of Chubb from $314.00 to $324.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Barclays lowered shares of Chubb from an "overweight" rating to an "equal weight" rating and lowered their price target for the company from $321.00 to $298.00 in a report on Monday, July 7th. Finally, Wells Fargo & Company reduced their price objective on shares of Chubb from $285.00 to $267.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 24th. One analyst has rated the stock with a sell rating, eleven have issued a hold rating, four have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, Chubb has a consensus rating of "Hold" and a consensus target price of $301.50.

Chubb Stock Performance

NYSE:CB traded down $1.04 during mid-day trading on Tuesday, hitting $269.96. The stock had a trading volume of 1,436,511 shares, compared to its average volume of 2,189,702. The stock has a market capitalization of $107.63 billion, a price-to-earnings ratio of 11.91, a P/E/G ratio of 3.07 and a beta of 0.53. The company has a 50 day simple moving average of $278.90 and a 200-day simple moving average of $282.48. Chubb Limited has a 52 week low of $252.16 and a 52 week high of $306.91. The company has a current ratio of 0.28, a quick ratio of 0.28 and a debt-to-equity ratio of 0.18.

Chubb (NYSE:CB - Get Free Report) last released its quarterly earnings results on Tuesday, July 22nd. The financial services provider reported $6.14 EPS for the quarter, topping analysts' consensus estimates of $5.84 by $0.30. Chubb had a net margin of 16.08% and a return on equity of 12.34%. The company had revenue of $14.20 billion for the quarter, compared to the consensus estimate of $12.53 billion. During the same period in the previous year, the firm earned $5.38 EPS. Chubb's revenue was up 6.3% on a year-over-year basis. On average, research analysts expect that Chubb Limited will post 21.52 earnings per share for the current fiscal year.

Chubb declared that its Board of Directors has approved a share buyback plan on Thursday, May 15th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to repurchase up to 4.3% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Chubb Increases Dividend

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

About Chubb

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.