Travelers Companies (NYSE:TRV) Hits New 1-Year High - Time to Buy?

Key Points

• Travelers Companies (NYSE:TRV) hit a new 52-week high, trading as high as $329.92, reflecting strong recent stock momentum.
• The company delivered a solid quarterly beat, reporting $7.71 EPS versus the $6.80 estimate and revenue of $11.92 billion, while also raising its quarterly dividend to $1.25 per share.
• Analyst sentiment is mixed: several firms maintain buy or outperform ratings, but Barclays downgraded the stock to underweight; the current consensus rating is Hold with a $309.07 price target.

The Travelers Companies, Inc. (NYSE:TRV - Get Free Report)'s share price reached a new 52-week high on Monday . The stock traded as high as $329.92 and last traded at $329.58, with a volume of 135729 shares trading hands. The stock had previously closed at $327.37.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Keefe, Bruyette & Woods lifted their price target on shares of Travelers Companies from $340.00 to $342.00 and gave the company an "outperform" rating in a research report on Monday, April 20th. Roth Mkm reissued a "buy" rating on shares of Travelers Companies in a research note on Monday, April 20th. Weiss Ratings restated a "buy (a-)" rating on shares of Travelers Companies in a research report on Friday, May 8th. Evercore reaffirmed an "outperform" rating on shares of Travelers Companies in a research note on Friday, April 17th. Finally, Barclays cut Travelers Companies from an "equal weight" rating to an "underweight" rating and lowered their price target for the stock from $331.00 to $295.00 in a report on Friday, June 12th. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $309.07.

Travelers Companies Price Performance

The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.35 and a current ratio of 0.35. The stock's 50-day moving average is $303.24 and its two-hundred day moving average is $296.28. The stock has a market cap of $70.01 billion, a PE ratio of 9.80, a PEG ratio of 2.95 and a beta of 0.48.

Travelers Companies (NYSE:TRV - Get Free Report) last announced its earnings results on Thursday, April 16th. The insurance provider reported $7.71 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.80 by $0.91. Travelers Companies had a return on equity of 24.06% and a net margin of 15.54%.The company had revenue of $11.92 billion for the quarter, compared to analyst estimates of $11.11 billion. During the same quarter in the previous year, the company earned $1.91 earnings per share. The firm's quarterly revenue was down 1.7% compared to the same quarter last year. On average, equities analysts predict that The Travelers Companies, Inc. will post 28 earnings per share for the current year.

Travelers Companies Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Wednesday, June 10th will be issued a dividend of $1.25 per share. This is a positive change from Travelers Companies's previous quarterly dividend of $1.10. The ex-dividend date is Wednesday, June 10th. This represents a $5.00 dividend on an annualized basis and a yield of 1.5%. Travelers Companies's dividend payout ratio (DPR) is 14.88%.

Insider Activity at Travelers Companies

In other Travelers Companies news, EVP Jeffrey P. Klenk sold 6,414 shares of Travelers Companies stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $305.06, for a total value of $1,956,654.84. Following the completion of the transaction, the executive vice president directly owned 6,075 shares of the company's stock, valued at $1,853,239.50. The trade was a 51.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Vice Chairman William H. Heyman sold 1,557 shares of the stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $310.64, for a total transaction of $483,666.48. Following the sale, the insider directly owned 259,590 shares in the company, valued at $80,639,037.60. This represents a 0.60% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 37,573 shares of company stock worth $11,504,146 over the last ninety days. Company insiders own 1.39% of the company's stock.

Institutional Investors Weigh In On Travelers Companies

A number of hedge funds have recently added to or reduced their stakes in TRV. Spinnaker Trust increased its position in shares of Travelers Companies by 1.7% during the first quarter. Spinnaker Trust now owns 1,938 shares of the insurance provider's stock worth $565,000 after acquiring an additional 33 shares during the period. Cim LLC boosted its holdings in Travelers Companies by 0.4% in the fourth quarter. Cim LLC now owns 8,145 shares of the insurance provider's stock valued at $2,363,000 after purchasing an additional 34 shares during the period. Avalon Trust Co grew its stake in Travelers Companies by 0.4% during the 1st quarter. Avalon Trust Co now owns 8,784 shares of the insurance provider's stock worth $2,562,000 after purchasing an additional 35 shares in the last quarter. Haverford Trust Co grew its stake in Travelers Companies by 0.7% during the 4th quarter. Haverford Trust Co now owns 5,210 shares of the insurance provider's stock worth $1,511,000 after purchasing an additional 35 shares in the last quarter. Finally, Sumitomo Life Insurance Co. increased its holdings in Travelers Companies by 0.7% during the 4th quarter. Sumitomo Life Insurance Co. now owns 5,236 shares of the insurance provider's stock worth $1,519,000 after purchasing an additional 35 shares during the period. 82.45% of the stock is currently owned by institutional investors and hedge funds.

Travelers Companies Company Profile

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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