Investors Buy Large Volume of Put Options on Chubb (NYSE:CB)

Key Points

• Chubb saw unusually heavy put-option activity: Investors purchased 6,019 put options, roughly 333% above the typical daily volume of 1,389, signaling increased hedging or bearish interest.
• Analyst sentiment remains mixed, with Chubb carrying an overall “Hold” rating and an average price target of $360.77. Recent targets ranged from $347 to $386.
• Chubb reported quarterly earnings of $7.26 per share, beating estimates of $6.77, and announced a quarterly dividend of $1.02, equivalent to a 1.2% annual yield.

Chubb Limited (NYSE:CB - Get Free Report) was the recipient of unusually large options trading on Wednesday. Stock investors acquired 6,019 put options on the company. This is an increase of approximately 333% compared to the typical daily volume of 1,389 put options.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on CB shares. Morgan Stanley lifted their price target on Chubb from $340.00 to $360.00 and gave the company an "equal weight" rating in a report on Wednesday, August 19th. Weiss Ratings upgraded Chubb from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Friday. Mizuho reduced their price target on shares of Chubb from $352.00 to $347.00 and set a "neutral" rating for the company in a report on Wednesday. The Goldman Sachs Group boosted their price target on Chubb from $362.00 to $386.00 and gave the company a "buy" rating in a research note on Wednesday, July 1st. Finally, UBS Group raised their target price on Chubb from $340.00 to $369.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 8th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Chubb presently has an average rating of "Hold" and an average price target of $360.77.

Insider Activity

In other news, Director Michael P. Connors sold 5,500 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $345.00, for a total value of $1,897,500.00. Following the completion of the sale, the director owned 12,803 shares in the company, valued at $4,417,035. This represents a 30.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Joseph Wayland sold 8,502 shares of the firm's stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $364.54, for a total value of $3,099,319.08. Following the sale, the executive vice president owned 33,749 shares of the company's stock, valued at $12,302,860.46. The trade was a 20.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.37% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Chubb

Several large investors have recently made changes to their positions in CB. Anchor Investment Management LLC boosted its position in shares of Chubb by 1,702.5% during the second quarter. Anchor Investment Management LLC now owns 4,957 shares of the financial services provider's stock worth $1,689,000 after buying an additional 4,682 shares during the period. Cidel Asset Management Inc. increased its stake in shares of Chubb by 3.2% during the 2nd quarter. Cidel Asset Management Inc. now owns 2,368 shares of the financial services provider's stock worth $807,000 after purchasing an additional 74 shares during the last quarter. Capital Analysts LLC lifted its stake in Chubb by 4.0% in the 2nd quarter. Capital Analysts LLC now owns 1,233 shares of the financial services provider's stock valued at $420,000 after purchasing an additional 47 shares during the last quarter. Pinnacle Wealth Management Advisory Group LLC boosted its stake in shares of Chubb by 3.6% during the 2nd quarter. Pinnacle Wealth Management Advisory Group LLC now owns 4,040 shares of the financial services provider's stock worth $1,377,000 after acquiring an additional 141 shares during the period. Finally, Integrated Wealth Concepts LLC boosted its position in Chubb by 19.5% during the second quarter. Integrated Wealth Concepts LLC now owns 23,589 shares of the financial services provider's stock worth $8,038,000 after purchasing an additional 3,846 shares during the period. Institutional investors own 83.81% of the company's stock.

Chubb Price Performance

CB traded up $0.39 during midday trading on Wednesday, hitting $342.25. The company had a trading volume of 348,397 shares, compared to its average volume of 1,715,453. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.29 and a current ratio of 0.29. The firm's 50-day simple moving average is $346.35 and its 200-day simple moving average is $334.87. Chubb has a twelve month low of $265.30 and a twelve month high of $365.91. The company has a market capitalization of $132.04 billion, a PE ratio of 12.11, a P/E/G ratio of 1.63 and a beta of 0.37.

Chubb (NYSE:CB - Get Free Report) last released its earnings results on Tuesday, July 21st. The financial services provider reported $7.26 earnings per share for the quarter, topping analysts' consensus estimates of $6.77 by $0.49. The company had revenue of $11.97 billion during the quarter, compared to the consensus estimate of $15.07 billion. Chubb had a return on equity of 14.47% and a net margin of 18.10%.The firm's quarterly revenue was up 3.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $6.14 earnings per share. Equities research analysts predict that Chubb will post 27.35 EPS for the current fiscal year.

Chubb Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Shareholders of record on Friday, September 11th will be issued a $1.02 dividend. The ex-dividend date is Friday, September 11th. This represents a $4.08 annualized dividend and a yield of 1.2%. Chubb's dividend payout ratio (DPR) is 14.43%.

About Chubb

Chubb Limited is a global insurance company that provides property and casualty, accident and health, life, and reinsurance products and services. The company serves businesses, individuals, and institutional clients, offering coverage for commercial property, liability, marine, cyber risk, workers' compensation, professional lines, personal assets, and other specialty risks.

Chubb distributes its products through brokers, agents, banks, and other business partners. Its commercial insurance operations serve companies ranging from small businesses to multinational corporations, while its personal insurance business provides coverage for homes, automobiles, valuable possessions, and other personal risks.

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