Strs Ohio Acquires New Stake in Chubb Limited $CB

Key Points

• Strs Ohio has acquired a new stake in Chubb Limited worth approximately $69.4 million, adding 229,957 shares to its portfolio and representing 0.06% ownership.
• Equities analysts have downgraded Chubb's stock ratings, with Wells Fargo reducing its price target from $285 to $267 and others also adjusting target prices downward, indicating a consensus average target price of $302.
• Chubb announced a quarterly dividend of $0.97 per share, with an annualized yield of 1.4%, alongside a $5 billion share repurchase program, reflecting management's belief in the company's undervaluation.

Strs Ohio purchased a new position in Chubb Limited (NYSE:CB - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 229,957 shares of the financial services provider's stock, valued at approximately $69,445,000. Strs Ohio owned 0.06% of Chubb at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently made changes to their positions in CB. Peoples Bank KS purchased a new stake in Chubb during the first quarter valued at about $25,000. Opal Wealth Advisors LLC bought a new stake in Chubb during the 1st quarter valued at approximately $25,000. North Capital Inc. bought a new stake in Chubb during the 1st quarter valued at approximately $26,000. IMA Advisory Services Inc. bought a new stake in Chubb during the 1st quarter valued at approximately $31,000. Finally, 1248 Management LLC bought a new stake in Chubb during the 1st quarter valued at approximately $31,000. Hedge funds and other institutional investors own 83.81% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on CB shares. Wells Fargo & Company decreased their price objective on shares of Chubb from $285.00 to $267.00 and set an "equal weight" rating for the company in a report on Thursday, July 24th. Hsbc Global Res lowered shares of Chubb from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 1st. Deutsche Bank Aktiengesellschaft lowered shares of Chubb from a "buy" rating to a "hold" rating and set a $303.00 target price for the company. in a research note on Tuesday, May 20th. Morgan Stanley decreased their target price on shares of Chubb from $300.00 to $295.00 and set an "equal weight" rating for the company in a research note on Monday, August 18th. Finally, UBS Group decreased their target price on shares of Chubb from $304.00 to $292.00 and set a "neutral" rating for the company in a research note on Monday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Chubb currently has an average rating of "Hold" and a consensus target price of $302.00.

Insider Transactions at Chubb

In other news, Director Michael Corbat bought 425 shares of the stock in a transaction 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 purchase, the director directly owned 2,450 shares in the company, valued at approximately $661,010. The trade was a 20.99% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider John J. Lupica sold 5,513 shares of the firm's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $290.06, for a total transaction of $1,599,100.78. Following the completion of the sale, the insider owned 91,180 shares of the company's stock, 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. Corporate insiders own 0.77% of the company's stock.

Chubb Stock Up 0.1%

CB opened at $277.37 on Thursday. The firm has a 50-day simple moving average of $274.43 and a two-hundred day simple moving average of $283.27. Chubb Limited has a 52 week low of $252.16 and a 52 week high of $306.91. The company has a market capitalization of $110.58 billion, a PE ratio of 12.23, a price-to-earnings-growth ratio of 3.12 and a beta of 0.56. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.18.

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

Chubb Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 3rd. Investors of record on Friday, September 12th will be given a $0.97 dividend. This represents a $3.88 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Friday, September 12th. Chubb's dividend payout ratio is 17.12%.

Chubb declared that its board has authorized a share repurchase program on Thursday, May 15th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 4.3% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

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.

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