United Services Automobile Association Invests $2.54 Million in Chubb Limited $CB

Key Points

• United Services Automobile Association acquired a new stake in Chubb Limited, purchasing 8,574 shares valued at approximately $2.54 million in the first quarter of 2023.
• Chubb's recent earnings report revealed an EPS of $6.14, exceeding the consensus estimate by $0.30, with a revenue of $14.20 billion compared to analyst expectations of $12.53 billion.
• The company announced a $5 billion stock buyback plan, signaling management's belief that its shares are undervalued, alongside a declared quarterly dividend of $0.97 per share.

United Services Automobile Association acquired a new position in Chubb Limited (NYSE:CB - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund acquired 8,574 shares of the financial services provider's stock, valued at approximately $2,542,000.

Several other large investors have also recently modified their holdings of CB. Brighton Jones LLC increased its holdings in shares of Chubb by 12.8% in the fourth quarter. Brighton Jones LLC now owns 1,945 shares of the financial services provider's stock worth $537,000 after buying an additional 221 shares during the period. Revolve Wealth Partners LLC purchased a new position in shares of Chubb in the fourth quarter worth about $205,000. Bank Pictet & Cie Europe AG purchased a new position in shares of Chubb in the fourth quarter worth about $1,320,000. Focus Partners Wealth increased its holdings in shares of Chubb by 72.1% in the fourth quarter. Focus Partners Wealth now owns 29,165 shares of the financial services provider's stock worth $8,127,000 after buying an additional 12,219 shares during the period. Finally, Gotham Asset Management LLC increased its holdings in shares of Chubb by 27.2% in the fourth quarter. Gotham Asset Management LLC now owns 50,989 shares of the financial services provider's stock worth $14,088,000 after buying an additional 10,889 shares during the period. Hedge funds and other institutional investors own 83.81% of the company's stock.

Insider Transactions at Chubb

In other news, Director Michael Corbat purchased 425 shares of the company's stock in a transaction that occurred on Friday, July 25th. The stock was purchased at an average cost of $269.80 per share, with a total value of $114,665.00. Following the purchase, the director owned 2,450 shares in the company, valued at approximately $661,010. This trade represents a 20.99% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 transaction of $1,599,100.78. Following the transaction, the insider directly owned 91,180 shares of the company's stock, valued at approximately $26,447,670.80. This represents a 5.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.77% of the company's stock.

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. HSBC cut Chubb from a "buy" rating to a "hold" rating and dropped their price target for the stock from $317.00 to $300.00 in a research report on Friday, August 1st. Keefe, Bruyette & Woods boosted their price target on Chubb from $314.00 to $324.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 9th. 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. Finally, Deutsche Bank Aktiengesellschaft lowered shares of Chubb from a "buy" rating to a "hold" rating and set a $303.00 price objective for the company. in a report on Tuesday, May 20th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Chubb presently has a consensus rating of "Hold" and an average target price of $302.00.

Chubb Price Performance

CB traded up $5.76 during trading on Thursday, reaching $283.21. 1,656,983 shares of the company traded hands, compared to its average volume of 1,780,706. 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 company has a market cap of $112.91 billion, a P/E ratio of 12.49, a PEG ratio of 3.12 and a beta of 0.56. The firm has a fifty day simple moving average of $274.43 and a 200 day simple moving average of $283.27. 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 announced its quarterly earnings results on Tuesday, July 22nd. The financial services provider reported $6.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.84 by $0.30. The company had revenue of $14.20 billion for the quarter, compared to the consensus estimate of $12.53 billion. Chubb had a net margin of 16.08% and a return on equity of 12.34%. Chubb's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $5.38 EPS. On average, equities analysts forecast that Chubb Limited will post 21.52 EPS for the current year.

Chubb announced that its Board of Directors has authorized a stock repurchase program 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 programs are often a sign that the company's board believes its shares are undervalued.

Chubb Announces Dividend

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

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.