SCS Capital Management LLC Buys Shares of 23,426 Chubb Limited $CB

Key Points

• SCS Capital Management LLC invested approximately $7.08 million in Chubb Limited, acquiring 23,426 shares during the first quarter.
• Chubb's recent earnings report showed $6.14 EPS, surpassing expectations and generating a revenue of $14.20 billion, which is up 6.3% year-over-year.
• Several analysts have downgraded Chubb's stock rating, with HSBC and Wells Fargo adjusting their price targets from $317 and $285 to $300 and $267, respectively.

SCS Capital Management LLC purchased a new position in Chubb Limited (NYSE:CB - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 23,426 shares of the financial services provider's stock, valued at approximately $7,077,000.

Other hedge funds have also modified their holdings of the company. Legato Capital Management LLC increased its stake in shares of Chubb by 120.9% in the first quarter. Legato Capital Management LLC now owns 10,200 shares of the financial services provider's stock worth $3,080,000 after acquiring an additional 5,582 shares during the last quarter. Jump Financial LLC raised its position in Chubb by 633.6% during the first quarter. Jump Financial LLC now owns 8,180 shares of the financial services provider's stock valued at $2,470,000 after acquiring an additional 7,065 shares in the last quarter. Davis Rea LTD. bought a new position in Chubb during the first quarter valued at approximately $5,117,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Chubb by 15.4% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,753,719 shares of the financial services provider's stock worth $760,853,000 after acquiring an additional 366,559 shares in the last quarter. Finally, First Horizon Advisors Inc. raised its holdings in Chubb by 3.3% in the 1st quarter. First Horizon Advisors Inc. now owns 43,280 shares of the financial services provider's stock worth $13,070,000 after acquiring an additional 1,375 shares during the period. 83.81% of the stock is owned by institutional investors and hedge funds.

Chubb Trading Up 2.1%

Shares of NYSE CB traded up $5.76 during mid-day trading on Thursday, hitting $283.21. The company's stock had a trading volume of 1,656,983 shares, compared to its average volume of 1,591,194. The company has a debt-to-equity ratio of 0.18, a current ratio of 0.28 and a quick ratio of 0.28. The stock has a market cap of $112.91 billion, a price-to-earnings ratio of 12.49, a price-to-earnings-growth ratio of 3.13 and a beta of 0.56. The company's fifty day simple moving average is $274.46 and its 200-day simple moving average is $283.33. Chubb Limited has a one year low of $252.16 and a one year high of $306.91.

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

Chubb Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 3rd. Stockholders of record on Friday, September 12th will be issued a dividend of $0.97 per share. This represents a $3.88 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, September 12th. Chubb's payout ratio is 17.12%.

Chubb announced that its board has initiated a share buyback plan on Thursday, May 15th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the financial services provider to buy up to 4.3% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on CB shares. Wells Fargo & Company lowered 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. Morgan Stanley lowered their price target on shares of Chubb from $300.00 to $295.00 and set an "equal weight" rating on the stock in a report on Monday, August 18th. Evercore ISI set a $312.00 price target on shares of Chubb in a report on Wednesday, July 23rd. Citigroup assumed coverage on shares of Chubb in a report on Wednesday, August 13th. They issued a "buy" rating and a $326.00 target price on the stock. Finally, UBS Group lowered their target price on shares of Chubb from $304.00 to $292.00 and set a "neutral" rating on the stock in a report on Monday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Chubb currently has an average rating of "Hold" and an average target price of $302.00.

Insider Activity

In other news, Director Michael Corbat acquired 425 shares of the firm's stock in a transaction that occurred on Friday, July 25th. The stock was acquired 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 owned 2,450 shares in the company, valued at $661,010. This represents a 20.99% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider John J. Lupica sold 5,513 shares of Chubb stock in a transaction dated 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 of the company's stock, valued at $26,447,670.80. The trade was a 5.70% decrease in their position. The disclosure for this sale can be found here. Insiders own 0.77% of the company's stock.

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.