Zacks Research Issues Optimistic Forecast for Chubb Earnings

Key Points

• Zacks Research has increased its FY2025 earnings per share (EPS) estimate for Chubb to $21.27, noting a slight rise from the previous estimate of $21.13, while the current consensus estimate stands at $21.52.
• Chubb recently reported a quarterly earnings per share of $6.14, exceeding analysts' expectations by $0.30, with revenues reaching $14.20 billion.
• The company announced a quarterly dividend increase to $0.97 per share and initiated a $5 billion share repurchase plan, which indicates management's belief that its stock is undervalued.

Chubb Limited (NYSE:CB - Free Report) - Stock analysts at Zacks Research raised their FY2025 earnings estimates for Chubb in a report released on Tuesday, August 5th. Zacks Research analyst T. De now forecasts that the financial services provider will earn $21.27 per share for the year, up from their prior estimate of $21.13. The consensus estimate for Chubb's current full-year earnings is $21.52 per share. Zacks Research also issued estimates for Chubb's Q1 2026 earnings at $6.38 EPS, Q2 2026 earnings at $6.44 EPS, Q4 2026 earnings at $7.12 EPS, Q1 2027 earnings at $7.20 EPS and Q2 2027 earnings at $5.95 EPS.

Chubb (NYSE:CB - Get Free Report) last issued its earnings results on Tuesday, July 22nd. The financial services provider reported $6.14 EPS for the quarter, beating analysts' consensus estimates of $5.84 by $0.30. Chubb had a net margin of 16.08% and a return on equity of 12.34%. The business had revenue of $14.20 billion during the quarter, compared to analysts' expectations of $12.53 billion. During the same period in the prior year, the business earned $5.38 earnings per share. The company's quarterly revenue was up 6.3% compared to the same quarter last year.

Several other research analysts have also commented on the stock. Keefe, Bruyette & Woods raised their price objective on shares of Chubb from $314.00 to $324.00 and gave the company an "outperform" rating in a research note on Wednesday, July 9th. Evercore ISI set a $312.00 price objective on shares of Chubb in a research note on Wednesday, July 23rd. Piper Sandler reiterated a "neutral" rating and issued a $283.00 price objective (down previously from $335.00) on shares of Chubb in a research note on Thursday, July 24th. Wells Fargo & Company cut their target price on shares of Chubb from $285.00 to $267.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 24th. Finally, Hsbc Global Res downgraded shares of Chubb from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 1st. One analyst has rated the stock with a sell rating, ten have given a hold rating, four have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $301.50.

Chubb Trading Up 0.7%

CB stock traded up $1.99 during mid-day trading on Friday, hitting $271.30. 961,053 shares of the company were exchanged, compared to its average volume of 2,176,768. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.18. The firm has a market capitalization of $108.16 billion, a P/E ratio of 12.58, a PEG ratio of 3.07 and a beta of 0.53. The business has a fifty day simple moving average of $280.01 and a 200-day simple moving average of $282.42. Chubb has a 12-month low of $252.16 and a 12-month high of $306.91.

Institutional Investors Weigh In On Chubb

Several hedge funds have recently modified their holdings of CB. Cornerstone Advisors LLC boosted its position in shares of Chubb by 69.4% in the second quarter. Cornerstone Advisors LLC now owns 35,400 shares of the financial services provider's stock worth $10,256,000 after acquiring an additional 14,500 shares during the last quarter. Citizens Financial Group Inc. RI boosted its position in shares of Chubb by 14.8% in the second quarter. Citizens Financial Group Inc. RI now owns 19,053 shares of the financial services provider's stock worth $5,535,000 after acquiring an additional 2,461 shares during the last quarter. Ontario Teachers Pension Plan Board boosted its position in shares of Chubb by 183.0% in the second quarter. Ontario Teachers Pension Plan Board now owns 4,072 shares of the financial services provider's stock worth $1,180,000 after acquiring an additional 2,633 shares during the last quarter. Woodley Farra Manion Portfolio Management Inc. boosted its position in shares of Chubb by 1.9% in the second quarter. Woodley Farra Manion Portfolio Management Inc. now owns 143,630 shares of the financial services provider's stock worth $41,751,000 after acquiring an additional 2,693 shares during the last quarter. Finally, Westwood Holdings Group Inc. boosted its position in shares of Chubb by 101.4% in the second quarter. Westwood Holdings Group Inc. now owns 13,065 shares of the financial services provider's stock worth $3,785,000 after acquiring an additional 6,577 shares during the last quarter. 83.81% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other Chubb news, insider John J. Lupica sold 5,513 shares of the firm's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $290.06, for a total transaction of $1,599,100.78. Following the sale, the insider directly owned 91,180 shares of the company's stock, valued at $26,447,670.80. This trade represents a 5.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Michael Corbat purchased 425 shares of the firm's stock in a transaction on Friday, July 25th. The shares were purchased at an average cost of $269.80 per share, for a total transaction of $114,665.00. Following the completion of the purchase, the director directly owned 2,450 shares in the company, valued at $661,010. The trade was a 20.99% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders sold 100,390 shares of company stock worth $29,163,135 in the last 90 days. 0.86% of the stock is currently owned by corporate insiders.

Chubb Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, July 3rd. Stockholders of record on Friday, June 13th were issued a $0.97 dividend. The ex-dividend date was Friday, June 13th. This represents a $3.88 dividend on an annualized basis and a dividend yield of 1.4%. This is a boost from Chubb's previous quarterly dividend of $0.91. Chubb's payout ratio is 17.12%.

Chubb declared that its Board of Directors has authorized a share repurchase plan on Thursday, May 15th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the financial services provider to purchase up to 4.3% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

About Chubb

Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, and casualty; and group accident and health insurance to large, middle market, and small commercial businesses.