True North Advisors LLC Acquires New Shares in Chubb Limited (NYSE:CB)

Key Points

• True North Advisors LLC purchased a new stake in Chubb Limited during the first quarter, acquiring 1,439 shares valued at approximately $435,000.
• Chubb's latest earnings report revealed an earnings per share (EPS) of $6.14, surpassing expectations and showing a 6.3% year-over-year revenue increase.
• The company has authorized a share buyback plan worth $5 billion, indicating management's belief that its stock is undervalued.

True North Advisors LLC purchased a new stake in Chubb Limited (NYSE:CB - Free Report) in the 1st quarter, according to its most recent filing with the SEC. The institutional investor purchased 1,439 shares of the financial services provider's stock, valued at approximately $435,000.

Several other large investors have also recently added to or reduced their stakes in CB. Peoples Bank KS acquired a new stake in shares of Chubb during the first quarter valued at about $25,000. Opal Wealth Advisors LLC acquired a new stake in shares of Chubb during the first quarter valued at about $25,000. North Capital Inc. acquired a new stake in shares of Chubb during the first quarter valued at about $26,000. IMA Advisory Services Inc. acquired a new stake in shares of Chubb during the first quarter valued at about $31,000. Finally, Cherry Tree Wealth Management LLC lifted its position in shares of Chubb by 56.6% during the first quarter. Cherry Tree Wealth Management LLC now owns 119 shares of the financial services provider's stock worth $36,000 after purchasing an additional 43 shares during the last quarter. 83.81% of the stock is currently owned by institutional investors and hedge funds.

Chubb Stock Performance

Shares of CB traded up $0.76 during mid-day trading on Thursday, reaching $275.80. 1,054,090 shares of the company's stock traded hands, compared to its average volume of 2,194,648. The business's 50-day moving average price is $278.26 and its 200-day moving average price is $282.43. The stock has a market capitalization of $109.96 billion, a P/E ratio of 12.17, a price-to-earnings-growth ratio of 3.11 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 12 month low of $252.16 and a 12 month high of $306.91.

Chubb (NYSE:CB - Get Free Report) last released its quarterly earnings results on Tuesday, July 22nd. The financial services provider reported $6.14 earnings per share 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 for the quarter, compared to analysts' expectations of $12.53 billion. During the same quarter 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. Equities analysts predict that Chubb Limited will post 21.52 earnings per share for the current year.

Chubb announced that its board has initiated a stock repurchase 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 reacquire up to 4.3% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Chubb Dividend Announcement

The company also recently disclosed 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. This represents a $3.88 annualized dividend and a yield of 1.4%. Chubb's payout ratio is 17.12%.

Insiders Place Their Bets

In other Chubb news, COO John W. Keogh sold 85,083 shares of Chubb stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $290.24, for a total transaction of $24,694,489.92. Following the transaction, the chief operating officer directly owned 237,728 shares in the company, valued at approximately $68,998,174.72. The trade was a 26.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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 transaction, the insider owned 91,180 shares in the company, valued at approximately $26,447,670.80. The trade was a 5.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 100,390 shares of company stock worth $29,163,135. Corporate insiders own 0.77% of the company's stock.

Analyst Upgrades and Downgrades

CB has been the topic of several research reports. Morgan Stanley upped their price objective on Chubb from $280.00 to $300.00 and gave the company an "equal weight" rating in a research note on Monday, May 19th. Deutsche Bank Aktiengesellschaft cut Chubb from a "buy" rating to a "hold" rating and set a $303.00 price objective on the stock. in a research note on Tuesday, May 20th. Piper Sandler restated 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. Raymond James Financial restated a "strong-buy" rating on shares of Chubb in a research note on Thursday, April 24th. Finally, Barclays cut 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 research note on Monday, July 7th. One research analyst has rated the stock with a sell rating, eleven have assigned a hold rating, five have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Chubb currently has a consensus rating of "Hold" and an average target price of $302.31.

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.