Travelers Companies (NYSE:TRV) Sets New 12-Month High - Here's Why

Key Points

• Travelers shares hit a 52-week high, trading near $408 after rising 3.4% from the prior close.
• The insurer reported quarterly earnings of $9.18 per share, beating the $7.39 consensus estimate, and revenue of $12.41 billion versus forecasts of $11.36 billion.
• Analysts’ consensus rating was Hold, with a $366.37 average price target; Travelers also announced a $1.25 quarterly dividend, equal to a 1.2% yield.

The Travelers Companies, Inc. (NYSE:TRV - Get Free Report)'s stock price reached a new 52-week high on Wednesday. The stock traded as high as $407.95 and last traded at $408.0930, with a volume of 1,041,801 shares trading hands. The stock had previously closed at $395.41.

Analyst Ratings Changes

TRV has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods boosted their target price on Travelers Companies from $372.00 to $382.00 and gave the company a "market perform" rating in a research report on Tuesday, October 20th. BMO Capital Markets raised their price objective on Travelers Companies from $379.00 to $388.00 and gave the company a "market perform" rating in a research note on Tuesday, October 20th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of Travelers Companies in a research note on Monday, October 19th. Wells Fargo & Company upped their target price on Travelers Companies from $341.00 to $377.00 and gave the stock an "equal weight" rating in a research report on Monday, October 19th. Finally, Evercore cut Travelers Companies from an "outperform" rating to an "in-line" rating and set a $329.00 target price on the stock. in a report on Friday, July 10th. Three 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 issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $366.37.

Travelers Companies Trading Up 3.4%

The stock's fifty day simple moving average is $375.72 and its 200-day simple moving average is $330.78. The company has a debt-to-equity ratio of 0.34, a current ratio of 0.33 and a quick ratio of 0.33. The firm has a market cap of $83.80 billion, a PE ratio of 10.72, a PEG ratio of 2.76 and a beta of 0.40.

Travelers Companies (NYSE:TRV - Get Free Report) last issued its quarterly earnings data on Friday, October 16th. The insurance provider reported $9.18 earnings per share for the quarter, topping the consensus estimate of $7.39 by $1.79. Travelers Companies had a return on equity of 26.19% and a net margin of 17.03%. The company had revenue of $12.41 billion during the quarter, compared to analyst estimates of $11.36 billion. During the same period in the prior year, the business posted $8.14 earnings per share. The firm's revenue for the quarter was down .5% compared to the same quarter last year. On average, sell-side analysts forecast that The Travelers Companies, Inc. will post 36.27 earnings per share for the current year.

Travelers Companies Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Thursday, December 10th will be paid a $1.25 dividend. This represents a $5.00 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Thursday, December 10th. Travelers Companies's payout ratio is currently 13.11%.

Insider Buying and Selling

In related news, CEO Alan Schnitzer sold 88,900 shares of the business's stock in a transaction on Wednesday, October 21st. The stock was sold at an average price of $396.77, for a total value of $35,272,853.00. Following the sale, the chief executive officer owned 303,124 shares of the company's stock, valued at $120,270,509.48. The trade was a 22.68% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Maria Olivo sold 15,100 shares of the business's stock in a transaction that occurred on Wednesday, October 21st. The stock was sold at an average price of $398.44, for a total value of $6,016,444.00. Following the transaction, the executive vice president directly owned 103,642 shares in the company, valued at approximately $41,295,118.48. This trade represents a 12.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 180,287 shares of company stock valued at $71,713,050 in the last three months. Insiders own 1.39% of the company's stock.

Institutional Investors Weigh In On Travelers Companies

Hedge funds and other institutional investors have recently bought and sold shares of the company. Latitude Advisors LLC bought a new stake in shares of Travelers Companies during the third quarter worth $28,000. LifeSteps Financial Inc. acquired a new position in Travelers Companies during the 2nd quarter worth about $26,000. Kilter Group LLC acquired a new position in Travelers Companies during the 2nd quarter worth about $26,000. Whipplewood Advisors LLC bought a new stake in Travelers Companies during the 1st quarter worth about $26,000. Finally, Delos Wealth Advisors LLC bought a new stake in Travelers Companies during the 2nd quarter worth about $30,000. 82.45% of the stock is currently owned by institutional investors and hedge funds.

Travelers Companies Company Profile

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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