Travelers Companies Sees Unusually High Options Volume (NYSE:TRV)

Key Points

• Unusually heavy options activity hit Travelers Companies, with investors buying 15,094 call options on Monday — about 2,292% above its normal daily volume.
• The company reported strong quarterly results, topping expectations with $7.71 EPS versus $6.80 estimated and $11.92 billion in revenue versus $11.11 billion expected.
• Travelers also raised its quarterly dividend to $1.25 from $1.10, implying a $5.00 annualized payout and a 1.6% yield.

The Travelers Companies, Inc. (NYSE:TRV - Get Free Report) saw unusually large options trading on Monday. Stock investors bought 15,094 call options on the company. This represents an increase of approximately 2,292% compared to the typical daily volume of 631 call options.

Insider Activity at Travelers Companies

In other Travelers Companies news, Vice Chairman William H. Heyman sold 1,557 shares of the business's 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 transaction, the insider owned 259,590 shares in the company, valued at $80,639,037.60. The trade was a 0.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Jeffrey P. Klenk sold 6,414 shares of the business's 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 transaction, the executive vice president owned 6,075 shares in the company, valued at approximately $1,853,239.50. This represents a 51.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 37,573 shares of company stock valued at $11,504,146 over the last 90 days. Corporate insiders own 1.39% of the company's stock.

Hedge Funds Weigh In On Travelers Companies

Institutional investors have recently made changes to their positions in the stock. HHM Wealth Advisors LLC grew its holdings in shares of Travelers Companies by 145.7% during the first quarter. HHM Wealth Advisors LLC now owns 86 shares of the insurance provider's stock valued at $25,000 after purchasing an additional 51 shares during the last quarter. Whipplewood Advisors LLC bought a new position in shares of Travelers Companies during the first quarter valued at approximately $26,000. Kemnay Advisory Services Inc. bought a new position in shares of Travelers Companies during the fourth quarter valued at approximately $26,000. Osterweis Capital Management Inc. grew its holdings in shares of Travelers Companies by 1,820.0% during the second quarter. Osterweis Capital Management Inc. now owns 96 shares of the insurance provider's stock valued at $26,000 after purchasing an additional 91 shares during the last quarter. Finally, Kohmann Bosshard Financial Services LLC bought a new position in shares of Travelers Companies during the fourth quarter valued at approximately $28,000. 82.45% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. Weiss Ratings reaffirmed a "buy (a-)" rating on shares of Travelers Companies in a research report on Friday, May 8th. Bank of America dropped their target price on Travelers Companies from $259.00 to $257.00 and set an "underperform" rating on the stock in a research report on Tuesday, April 14th. Keefe, Bruyette & Woods lifted their target price on Travelers Companies from $340.00 to $342.00 and gave the stock an "outperform" rating in a research report on Monday, April 20th. Seaport Research Partners set a $322.00 target price on Travelers Companies in a research report on Tuesday, May 26th. Finally, JPMorgan Chase & Co. raised Travelers Companies from an "underweight" rating to a "neutral" rating and lifted their target price for the stock from $316.00 to $322.00 in a research report on Tuesday, May 26th. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, Travelers Companies presently has an average rating of "Hold" and a consensus target price of $309.07.

Travelers Companies Stock Up 0.5%

Travelers Companies stock traded up $1.52 during midday trading on Monday, hitting $305.98. The stock had a trading volume of 1,070,989 shares, compared to its average volume of 1,540,754. The company has a current ratio of 0.35, a quick ratio of 0.35 and a debt-to-equity ratio of 0.29. The stock has a market cap of $65.07 billion, a P/E ratio of 9.10, a P/E/G ratio of 2.75 and a beta of 0.48. Travelers Companies has a 12 month low of $249.19 and a 12 month high of $313.12. The business has a fifty day moving average price of $300.22 and a 200 day moving average price of $294.54.

Travelers Companies (NYSE:TRV - Get Free Report) last announced its quarterly earnings data 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 firm had revenue of $11.92 billion during the quarter, compared to analyst estimates of $11.11 billion. Travelers Companies had a return on equity of 24.06% and a net margin of 15.54%.Travelers Companies's quarterly revenue was down 1.7% on a year-over-year basis. During the same period in the previous year, the company earned $1.91 earnings per share. Research analysts predict that Travelers Companies will post 28 EPS for the current year.

Travelers Companies Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Wednesday, June 10th will be issued a $1.25 dividend. This is an increase from Travelers Companies's previous quarterly dividend of $1.10. This represents a $5.00 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Wednesday, June 10th. Travelers Companies's dividend payout ratio is presently 14.88%.

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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