Chubb Limited $CB Stake Cut by Prudential PLC

Key Points

• Prudential PLC has reduced its holdings in Chubb Limited by 25.5% during the first quarter, resulting in ownership of 6,522 shares valued at approximately $1.97 million.
• Chubb has announced a quarterly dividend of $0.97 per share, which will be paid on October 3rd, with a dividend yield of 1.4%.
• The company's stock buyback plan authorizes the repurchase of up to $5.00 billion in shares, indicating the board's belief that Chubb's stock is currently undervalued.

Prudential PLC cut its position in Chubb Limited (NYSE:CB - Free Report) by 25.5% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 6,522 shares of the financial services provider's stock after selling 2,229 shares during the quarter. Prudential PLC's holdings in Chubb were worth $1,970,000 at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in CB. Peoples Bank KS purchased a new position in Chubb during the 1st quarter worth $25,000. Opal Wealth Advisors LLC purchased a new position in Chubb during the first quarter worth about $25,000. North Capital Inc. acquired a new stake in shares of Chubb in the 1st quarter valued at approximately $26,000. IMA Advisory Services Inc. purchased a new stake in shares of Chubb during the 1st quarter worth $31,000. Finally, Kayne Anderson Rudnick Investment Management LLC increased its position in Chubb by 254.3% during the 4th quarter. Kayne Anderson Rudnick Investment Management LLC now owns 124 shares of the financial services provider's stock worth $34,000 after purchasing an additional 89 shares in the last quarter. Hedge funds and other institutional investors own 83.81% of the company's stock.

Insiders Place Their Bets

In other news, 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 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 represents a 5.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Michael Corbat purchased 425 shares of the business's stock in a transaction that occurred on Friday, July 25th. The stock was bought at an average cost of $269.80 per share, for a total transaction of $114,665.00. Following the completion of the acquisition, the director directly owned 2,450 shares of the company's stock, valued at $661,010. This represents a 20.99% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have sold 100,390 shares of company stock worth $29,163,135 in the last three months. 0.86% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of research firms have issued reports on CB. Keefe, Bruyette & Woods upped their target price on shares of Chubb from $314.00 to $324.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Piper Sandler reissued a "neutral" rating and set a $283.00 price objective (down previously from $335.00) on shares of Chubb in a research note on Thursday, July 24th. Citigroup assumed coverage on shares of Chubb in a research report on Wednesday, August 13th. They set a "buy" rating and a $326.00 target price on the stock. HSBC downgraded Chubb from a "buy" rating to a "hold" rating and cut their price target for the company from $317.00 to $300.00 in a report on Friday, August 1st. Finally, Evercore ISI set a $312.00 price objective on Chubb in a research report on Wednesday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Chubb currently has a consensus rating of "Hold" and a consensus price target of $302.00.

Chubb Stock Up 0.4%

Shares of NYSE:CB traded up $0.9740 during mid-day trading on Tuesday, hitting $273.8940. 744,897 shares of the company traded hands, compared to its average volume of 1,777,197. The firm's 50 day simple moving average is $277.52 and its 200 day simple moving average is $282.54. The firm has a market cap of $109.20 billion, a P/E ratio of 12.07, a PEG ratio of 3.09 and a beta of 0.53. 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 Limited has a 52-week low of $252.16 and a 52-week high of $306.91.

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 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 business had revenue of $14.20 billion for the quarter, compared to analysts' expectations of $12.53 billion. During the same period in the previous year, the company posted $5.38 earnings per share. The business's revenue for the quarter was up 6.3% compared to the same quarter last year. On average, equities analysts anticipate that Chubb Limited will post 21.52 EPS for the current year.

Chubb announced that its Board of Directors has authorized a stock buyback plan on Thursday, May 15th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the financial services provider to repurchase up to 4.3% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.

Chubb Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 3rd. Investors of record on Friday, September 12th will be issued a $0.97 dividend. The ex-dividend date of this dividend 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 Company 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.