UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC Boosts Stock Position in Chubb Limited $CB

Key Points

• UBS AM increased its stake in Chubb Limited by 1.1% during the first quarter, bringing its total holdings to approximately $840.76 million.
• Chubb recently announced a quarterly dividend of $0.97 per share, expected to be paid on October 3rd, representing an annualized yield of 1.4%.
• A stock buyback program allowing Chubb to repurchase up to $5 billion in shares has been approved, indicating management's belief that the stock is undervalued.

UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Chubb Limited (NYSE:CB - Free Report) by 1.1% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,784,053 shares of the financial services provider's stock after buying an additional 30,334 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC owned about 0.69% of Chubb worth $840,756,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Legato Capital Management LLC boosted its position in Chubb by 120.9% during the first quarter. Legato Capital Management LLC now owns 10,200 shares of the financial services provider's stock valued at $3,080,000 after buying an additional 5,582 shares during the period. Jump Financial LLC boosted 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 buying an additional 7,065 shares during the period. Davis Rea LTD. purchased a new stake in Chubb during the first quarter valued at about $5,117,000. First Horizon Advisors Inc. boosted its position in Chubb by 3.3% during the first quarter. First Horizon Advisors Inc. now owns 43,280 shares of the financial services provider's stock valued at $13,070,000 after buying an additional 1,375 shares during the period. Finally, Golden State Wealth Management LLC boosted its position in Chubb by 9.1% during the first quarter. Golden State Wealth Management LLC now owns 549 shares of the financial services provider's stock valued at $166,000 after buying an additional 46 shares during the period. 83.81% of the stock is currently owned by hedge funds and other institutional investors.

Chubb Stock Up 2.1%

Shares of CB traded up $5.76 during trading hours on Thursday, hitting $283.21. The company had a trading volume of 1,656,983 shares, compared to its average volume of 1,591,194. The firm has a fifty day moving average price of $274.46 and a 200-day moving average price of $283.33. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.28 and a current ratio of 0.28. The stock has a market capitalization of $112.91 billion, a price-to-earnings ratio of 12.49, a P/E/G ratio of 3.13 and a beta of 0.56. 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 quarterly earnings results on Tuesday, July 22nd. The financial services provider reported $6.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.84 by $0.30. The firm had revenue of $14.20 billion during 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 quarterly revenue was up 6.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $5.38 EPS. On average, equities research analysts forecast that Chubb Limited will post 21.52 EPS for the current fiscal year.

Chubb Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 3rd. Investors of record on Friday, September 12th will be paid a dividend of $0.97 per share. 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 presently 17.12%.

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

Analyst Upgrades and Downgrades

CB has been the topic of a number of research analyst reports. UBS Group reduced their price target on Chubb from $304.00 to $292.00 and set a "neutral" rating on the stock in a report on Monday, July 28th. Cantor Fitzgerald raised shares of Chubb to a "hold" rating in a research report on Wednesday, August 13th. Evercore ISI set a $312.00 target price on shares of Chubb in a research report on Wednesday, July 23rd. Keefe, Bruyette & Woods upped their target price on shares of Chubb from $314.00 to $324.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 9th. Finally, Wells Fargo & Company reduced their target price on shares of Chubb from $285.00 to $267.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 24th. 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 company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $302.00.

Insider Transactions at Chubb

In other Chubb news, Director Michael Corbat bought 425 shares of Chubb stock in a transaction dated Friday, July 25th. The shares were purchased at an average cost of $269.80 per share, for a total transaction of $114,665.00. Following the acquisition, the director directly owned 2,450 shares in the company, valued at approximately $661,010. This represents a 20.99% increase in their position. The acquisition 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 dated 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 transaction, the insider directly owned 91,180 shares of the company's stock, valued at approximately $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.

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.