Travelers Companies (NYSE:TRV) Sets New 1-Year High Following Analyst Upgrade

Key Points

• Travelers shares reached a new 52-week high of $399.71 after BMO Capital Markets raised its price target from $379 to $388, while maintaining a Market Perform rating.
• The insurer substantially beat quarterly expectations, reporting $9.18 in EPS versus a $7.39 estimate and $12.41 billion in revenue versus an $11.36 billion forecast. Analysts’ consensus rating remains Hold, with an average price target of $364.32.
• Travelers declared a quarterly dividend of $1.25 per share, equivalent to $5.00 annually and a 1.3% yield; meanwhile, insiders sold $6.6 million of shares over the past 90 days, while institutional investors own 82.45% of the stock.

The Travelers Companies, Inc. (NYSE:TRV - Get Free Report) shares hit a new 52-week high on Wednesday after BMO Capital Markets raised their price target on the stock from $379.00 to $388.00. BMO Capital Markets currently has a market perform rating on the stock. Travelers Companies traded as high as $399.71 and last traded at $398.8320, with a volume of 1,715,527 shares. The stock had previously closed at $395.73.

Several other brokerages also recently issued reports on TRV. UBS Group reiterated a "neutral" rating on shares of Travelers Companies in a report on Monday. Piper Sandler boosted their price objective on Travelers Companies to $340.00 and gave the stock an "overweight" rating in a research note on Monday, July 13th. Evercore set a $329.00 target price on Travelers Companies and gave the stock an "in-line" rating in a research report on Friday, July 10th. Citigroup reiterated a "neutral" rating on shares of Travelers Companies in a research note on Friday. Finally, Wells Fargo & Company raised their target price on Travelers Companies from $341.00 to $377.00 and gave the company an "equal weight" rating in a report on Monday. Three investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, thirteen have given a Hold rating and five have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $364.32.

Insider Activity

In related news, EVP Daniel Yin sold 7,153 shares of the business's stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $387.00, for a total value of $2,768,211.00. Following the transaction, the executive vice president owned 68,834 shares in the company, valued at approximately $26,638,758. The trade was a 9.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Diane Kurtzman sold 4,164 shares of the stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $386.71, for a total value of $1,610,260.44. Following the completion of the transaction, the executive vice president directly owned 5,298 shares of the company's stock, valued at $2,048,789.58. This represents a 44.01% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 17,317 shares of company stock worth $6,597,631 over the last ninety days. Corporate insiders own 1.39% of the company's stock.

More Travelers Companies News

Here are the key news stories impacting Travelers Companies this week:

• Positive Sentiment: Wells Fargo said Travelers’ stock is expected to rise, adding to the favorable analyst commentary following the company’s third-quarter earnings beat. Travelers Companies Stock Price Expected to Rise, Wells Fargo & Company Analyst Says
• Positive Sentiment: Truist Financial raised its price target for Travelers, providing another positive signal for the insurer’s valuation after its strong quarterly results. Travelers Companies Stock Gets Price Target Bump from Truist Financial
• Positive Sentiment: Travelers received a modest fair-value increase as analysts adjusted their estimates following the third-quarter report, which showed earnings and revenue well ahead of consensus expectations. Travelers Stock Sees Modest Fair Value Lift After Q3 Analyst Target Increases

Institutional Investors Weigh In On Travelers Companies

A number of institutional investors have recently made changes to their positions in TRV. BlackRock Inc. purchased a new position in Travelers Companies in the 2nd quarter worth approximately $6,915,909,000. Dimensional Fund Advisors LP lifted its position in Travelers Companies by 3.7% during the first quarter. Dimensional Fund Advisors LP now owns 3,484,676 shares of the insurance provider's stock worth $1,016,433,000 after buying an additional 123,564 shares in the last quarter. Bank of America Corp DE acquired a new position in Travelers Companies during the second quarter worth $932,142,000. GQG Partners LLC acquired a new position in Travelers Companies during the second quarter worth $789,024,000. Finally, First Trust Advisors LP grew its holdings in Travelers Companies by 7.2% in the 1st quarter. First Trust Advisors LP now owns 1,705,401 shares of the insurance provider's stock valued at $497,431,000 after buying an additional 115,276 shares in the last quarter. 82.45% of the stock is currently owned by institutional investors.

Travelers Companies Trading Up 0.8%

The company has a market capitalization of $83.19 billion, a PE ratio of 10.46, a PEG ratio of 2.94 and a beta of 0.43. The company has a fifty day simple moving average of $369.55 and a 200-day simple moving average of $339.21. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 0.34.

Travelers Companies (NYSE:TRV - Get Free Report) last posted its earnings results on Friday, October 16th. The insurance provider reported $9.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.39 by $1.79. The company had revenue of $12.41 billion during the quarter, compared to analysts' expectations of $11.36 billion. Travelers Companies had a return on equity of 26.19% and a net margin of 17.03%. The firm's quarterly revenue was down .5% compared to the same quarter last year. During the same quarter last year, the firm earned $8.14 earnings per share. Analysts predict that The Travelers Companies, Inc. will post 34.61 EPS for the current year.

Travelers Companies Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Thursday, December 10th will be issued a dividend of $1.25 per share. The ex-dividend date is Thursday, December 10th. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.3%. Travelers Companies's dividend payout ratio is currently 13.11%.

About Travelers Companies

Travelers Companies, Inc is a property and casualty insurance company that provides insurance products and related services to businesses, government entities and individuals. The company offers coverage for property damage, liability, workers' compensation, automobile accidents, cybersecurity risks and other exposures.

Travelers conducts its operations primarily through its Business Insurance, Bond & Specialty Insurance and Personal Insurance segments. Its products include commercial property and casualty policies, surety and fidelity bonds, homeowners insurance, personal automobile insurance and umbrella coverage.

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