Chubb (NYSE:CB) Hits New 12-Month High - Should You Buy?

Key Points

• Chubb reached a new 52-week high, trading as high as $369 and recently up 1.1%. The stock has a $141.24 billion market capitalization and trades at a P/E ratio of 12.76.
• Analysts remain cautious overall, with a consensus “Hold” rating and an average price target of $362.78, although individual targets range from $333 to $387.
• Chubb exceeded quarterly expectations, reporting $7.66 in EPS versus the $6.77 consensus and $16.20 billion in revenue. The company also pays a quarterly dividend of $1.02, equivalent to a 1.1% yield.

Chubb Limited (NYSE:CB - Get Free Report) hit a new 52-week high on Friday. The company traded as high as $369.00 and last traded at $365.7810, with a volume of 92,716 shares changing hands. The stock had previously closed at $362.28.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on CB. UBS Group reaffirmed a "neutral" rating and set a $380.00 target price on shares of Chubb in a report on Monday. Wells Fargo & Company increased their price objective on Chubb from $343.00 to $366.00 and gave the stock an "equal weight" rating in a report on Thursday, October 22nd. Keefe, Bruyette & Woods decreased their price target on Chubb from $389.00 to $387.00 and set an "outperform" rating for the company in a research note on Monday, October 12th. Cantor Fitzgerald reiterated a "neutral" rating and set a $333.00 price target on shares of Chubb in a report on Wednesday, October 21st. Finally, Mizuho boosted their price objective on shares of Chubb from $336.00 to $350.00 and gave the stock a "neutral" rating in a research note on Thursday, October 22nd. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $362.78.

Chubb Trading Up 1.1%

The firm has a market cap of $141.24 billion, a P/E ratio of 12.76, a price-to-earnings-growth ratio of 1.65 and a beta of 0.36. The company's fifty day moving average price is $342.91 and its two-hundred day moving average price is $333.47. The company has a current ratio of 0.35, a quick ratio of 0.29 and a debt-to-equity ratio of 0.22.

Chubb (NYSE:CB - Get Free Report) last announced its earnings results on Tuesday, October 20th. The financial services provider reported $7.66 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.77 by $0.89. The company had revenue of $16.20 billion for the quarter, compared to analyst estimates of $15.66 billion. Chubb had a net margin of 18.15% and a return on equity of 14.41%. During the same period in the prior year, the business earned $7.49 earnings per share. As a group, sell-side analysts predict that Chubb Limited will post 28.67 EPS for the current fiscal year.

Chubb Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 2nd. Investors of record on Friday, September 11th were paid a $1.02 dividend. The ex-dividend date of this dividend was Friday, September 11th. This represents a $4.08 annualized dividend and a yield of 1.1%. Chubb's dividend payout ratio is presently 14.28%.

Insider Activity at Chubb

In related news, EVP Timothy Boroughs sold 13,596 shares of the firm's stock in a transaction on Monday, October 26th. The stock was sold at an average price of $356.77, for a total transaction of $4,850,644.92. Following the completion of the transaction, the executive vice president directly owned 5,588 shares of the company's stock, valued at $1,993,630.76. This trade represents a 70.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Michael Connors sold 5,500 shares of the firm's stock in a transaction dated 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 transaction, the director owned 12,803 shares of the company's stock, valued at approximately $4,417,035. This represents a 30.05% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.37% of the company's stock.

Institutional Investors Weigh In On Chubb

Institutional investors and hedge funds have recently made changes to their positions in the company. Dunhill Financial LLC purchased a new stake in Chubb in the second quarter worth $25,000. IMG Wealth Management Inc. acquired a new stake in Chubb during the 2nd quarter valued at approximately $25,000. Parvin Asset Management LLC purchased a new position in Chubb during the second quarter valued at approximately $26,000. Highland Investment Advisors LLC purchased a new stake in shares of Chubb in the second quarter valued at approximately $26,000. Finally, Frazier Financial Advisors LLC lifted its stake in shares of Chubb by 86.4% in the first quarter. Frazier Financial Advisors LLC now owns 82 shares of the financial services provider's stock worth $27,000 after buying an additional 38 shares in the last quarter. Institutional investors own 83.81% of the company's stock.

About Chubb

Chubb Limited is a global insurance company that provides property and casualty, accident and health, life, and reinsurance products and services. Its offerings include commercial and personal property and casualty insurance, liability coverage, workers' compensation, specialty insurance, travel insurance, and coverage for high-net-worth individuals.

The company serves businesses, individuals, and institutional customers through a network spanning North America, Latin America, Europe, Asia-Pacific, and other international markets.

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