Price T Rowe Associates Inc. MD Decreases Stock Position in Chubb Limited $CB

Key Points

• Price T Rowe Associates Inc. MD has reduced its stake in Chubb Limited by 11.2%, selling 1,832,443 shares, and now owns approximately 14.57 million shares worth over $4.4 billion.
• Chubb recently reported earnings of $6.14 per share, exceeding analysts' expectations, with quarterly revenues of $14.20 billion, up 6.3% from the previous year.
• The company declared a quarterly dividend of $0.97 per share with an annualized yield of 1.4%, alongside a $5 billion share buyback plan indicating confidence in its stock valuation.

Price T Rowe Associates Inc. MD reduced its holdings in shares of Chubb Limited (NYSE:CB - Free Report) by 11.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 14,574,441 shares of the financial services provider's stock after selling 1,832,443 shares during the period. Chubb makes up 0.5% of Price T Rowe Associates Inc. MD's holdings, making the stock its 28th largest position. Price T Rowe Associates Inc. MD owned approximately 3.64% of Chubb worth $4,401,336,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. Peoples Bank KS acquired a new position in Chubb during the 1st quarter valued at about $25,000. Opal Wealth Advisors LLC acquired a new position in Chubb during the 1st quarter valued at about $25,000. North Capital Inc. acquired a new position in Chubb during the 1st quarter valued at about $26,000. IMA Advisory Services Inc. acquired a new position in Chubb during the 1st quarter valued at about $31,000. Finally, Kayne Anderson Rudnick Investment Management LLC increased its holdings in shares of Chubb by 254.3% in the fourth quarter. Kayne Anderson Rudnick Investment Management LLC now owns 124 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 89 shares during the period. 83.81% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

CB has been the topic of a number of research reports. Barclays lowered Chubb from an "overweight" rating to an "equal weight" rating and cut their price objective for the company from $321.00 to $298.00 in a report on Monday, July 7th. Hsbc Global Res lowered Chubb from a "strong-buy" rating to a "hold" rating in a report on Friday, August 1st. UBS Group cut their price objective on Chubb from $304.00 to $292.00 and set a "neutral" rating on the stock in a report on Monday, July 28th. Piper Sandler reissued a "neutral" rating and issued a $283.00 price objective (down from $335.00) on shares of Chubb in a report on Thursday, July 24th. Finally, Wells Fargo & Company cut their price objective on Chubb from $285.00 to $267.00 and set an "equal weight" rating on the stock in a report on Thursday, July 24th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Chubb presently has an average rating of "Hold" and an average target price of $302.00.

Insiders Place Their Bets

In other Chubb news, Director Michael Corbat purchased 425 shares of the stock in a transaction on Friday, July 25th. The shares were bought at an average price of $269.80 per share, for a total transaction of $114,665.00. Following the completion of the transaction, the director owned 2,450 shares of the company's stock, valued at $661,010. This trade represents a 20.99% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider John J. Lupica sold 5,513 shares of the stock in a transaction that occurred on 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 transaction, the insider 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. 0.77% of the stock is currently owned by company insiders.

Chubb Stock Performance

Chubb stock traded down $1.4450 during midday trading on Friday, hitting $277.3750. 1,401,699 shares of the company were exchanged, compared to its average volume of 1,895,244. The firm has a market capitalization of $110.59 billion, a PE ratio of 12.24, a price-to-earnings-growth ratio of 3.13 and a beta of 0.53. Chubb Limited has a fifty-two week low of $252.16 and a fifty-two week high of $306.91. The business has a fifty day simple moving average of $276.76 and a two-hundred day simple moving average of $282.59. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.28 and a current ratio of 0.28.

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. The firm had revenue of $14.20 billion for the quarter, compared to analyst estimates of $12.53 billion. Chubb had a return on equity of 12.34% and a net margin of 16.08%.Chubb's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same period last year, the company earned $5.38 earnings per share. On average, sell-side analysts forecast that Chubb Limited will post 21.52 earnings per share for the current year.

Chubb Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 3rd. Shareholders of record on Friday, September 12th will be given a dividend of $0.97 per share. The ex-dividend date is Friday, September 12th. 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%.

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

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.