Travelers Companies (NYSE:TRV) Given New $342.00 Price Target at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods raised its price target on Travelers to $342 from $340 and kept an "outperform" rating, implying roughly a 13.5% upside from the stock's recent price.
• Quarterly results topped estimates: Travelers reported $7.71 EPS versus a $6.80 consensus and $11.92 billion in revenue (vs. $11.11 billion), with a 15.54% net margin and 24.06% return on equity.
• Board authorized a $5.0 billion share repurchase, allowing the company to buy back up to about 8.3% of outstanding shares — a move typically viewed as a signal the stock may be undervalued.

Travelers Companies (NYSE:TRV - Get Free Report) had its price target hoisted by analysts at Keefe, Bruyette & Woods from $340.00 to $342.00 in a research note issued on Monday,Benzinga reports. The brokerage currently has an "outperform" rating on the insurance provider's stock. Keefe, Bruyette & Woods' price target would indicate a potential upside of 13.51% from the company's current price.

Other analysts also recently issued research reports about the stock. Cantor Fitzgerald boosted their price objective on shares of Travelers Companies from $316.00 to $319.00 and gave the stock an "overweight" rating in a report on Monday, February 2nd. Zacks Research downgraded shares of Travelers Companies from a "strong-buy" rating to a "hold" rating in a report on Monday, December 22nd. Barclays boosted their price objective on shares of Travelers Companies from $312.00 to $331.00 and gave the stock an "equal weight" rating in a report on Wednesday, April 8th. JPMorgan Chase & Co. boosted their price objective on shares of Travelers Companies from $302.00 to $305.00 and gave the stock an "underweight" rating in a report on Wednesday, January 7th. Finally, Mizuho decreased their price objective on shares of Travelers Companies from $315.00 to $304.00 and set a "neutral" rating on the stock in a report on Thursday, January 22nd. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Travelers Companies has a consensus rating of "Hold" and an average price target of $308.79.

Travelers Companies Stock Up 0.2%

Shares of NYSE:TRV opened at $301.29 on Monday. The company has a market cap of $64.07 billion, a price-to-earnings ratio of 8.96, a PEG ratio of 2.78 and a beta of 0.51. The firm's 50-day simple moving average is $299.50 and its 200-day simple moving average is $288.11. The company has a quick ratio of 0.35, a current ratio of 0.35 and a debt-to-equity ratio of 0.29. Travelers Companies has a fifty-two week low of $247.81 and a fifty-two week high of $313.12.

Travelers Companies (NYSE:TRV - Get Free Report) last issued its earnings results on Thursday, April 16th. The insurance provider reported $7.71 earnings per share for the quarter, beating the consensus estimate of $6.80 by $0.91. The business had revenue of $11.92 billion for the quarter, compared to the consensus estimate of $11.11 billion. Travelers Companies had a net margin of 15.54% and a return on equity of 24.06%. The business's quarterly revenue was down 1.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.91 earnings per share. As a group, equities research analysts predict that Travelers Companies will post 17.02 earnings per share for the current year.

Travelers Companies declared that its board has authorized a share repurchase plan on Wednesday, January 21st that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the insurance provider to reacquire up to 8.3% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board of directors believes its stock is undervalued.

Insider Activity

In related news, EVP Jeffrey P. Klenk sold 16,712 shares of the company's stock in a transaction that occurred on Friday, January 23rd. The shares were sold at an average price of $279.77, for a total transaction of $4,675,516.24. Following the completion of the transaction, the executive vice president owned 6,075 shares of the company's stock, valued at approximately $1,699,602.75. This represents a 73.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Maria Olivo sold 10,400 shares of the company's stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $300.75, for a total transaction of $3,127,800.00. Following the transaction, the executive vice president directly owned 117,596 shares of the company's stock, valued at $35,366,997. This trade represents a 8.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 92,845 shares of company stock worth $27,239,631. Corporate insiders own 1.46% of the company's stock.

Hedge Funds Weigh In On Travelers Companies

Institutional investors and hedge funds have recently bought and sold shares of the stock. HHM Wealth Advisors LLC grew its stake in Travelers Companies by 145.7% during the first quarter. HHM Wealth Advisors LLC now owns 86 shares of the insurance provider's stock worth $25,000 after buying an additional 51 shares during the period. Kemnay Advisory Services Inc. purchased a new stake in Travelers Companies during the fourth quarter worth approximately $26,000. Osterweis Capital Management Inc. grew its stake in Travelers Companies by 1,820.0% during the second quarter. Osterweis Capital Management Inc. now owns 96 shares of the insurance provider's stock worth $26,000 after buying an additional 91 shares during the period. Barnes Dennig Private Wealth Management LLC grew its stake in Travelers Companies by 134.1% during the third quarter. Barnes Dennig Private Wealth Management LLC now owns 96 shares of the insurance provider's stock worth $27,000 after buying an additional 55 shares during the period. Finally, Clayton Financial Group LLC purchased a new position in shares of Travelers Companies in the third quarter valued at $28,000. Institutional investors and hedge funds own 82.45% of the company's stock.

About Travelers Companies

The Travelers Companies, Inc NYSE: TRV is a leading provider of property and casualty insurance products and services. The company underwrites a broad range of commercial and personal insurance lines, offering coverage designed to protect individuals, small and midsize businesses, and large corporate clients against property loss, liability, and other operational risks. Travelers is known for combining underwriting, claims management and risk control services to help clients prevent losses and recover when incidents occur.

On the commercial side, Travelers writes primary and specialty coverages including property, general liability, commercial auto, workers' compensation, professional and management liability, surety and inland marine.

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