Zacks Research Issues Pessimistic Outlook for Chubb Earnings

Key Points

• Zacks Research lowered its Q3 2025 EPS estimate for Chubb from $5.38 to $5.07, signaling a pessimistic outlook for the financial services provider.
• Multiple analysts have decreased their price targets for Chubb, with Wells Fargo reducing it from $285.00 to $267.00, indicating a general trend of cautious sentiment around the stock.
• Chubb is implementing a $5 billion stock repurchase program and has recently increased its quarterly dividend, demonstrating confidence in its financial stability despite the negative forecasts.

Chubb Limited (NYSE:CB - Free Report) - Equities research analysts at Zacks Research dropped their Q3 2025 earnings per share (EPS) estimates for shares of Chubb in a research report issued on Tuesday, August 5th. Zacks Research analyst T. De now forecasts that the financial services provider will post earnings per share of $5.07 for the quarter, down from their prior estimate of $5.38. The consensus estimate for Chubb's current full-year earnings is $21.52 per share. Zacks Research also issued estimates for Chubb's Q4 2025 earnings at $6.37 EPS, Q3 2026 earnings at $5.21 EPS, FY2026 earnings at $25.15 EPS and FY2027 earnings at $27.58 EPS.

Other equities analysts have also issued reports about the company. Wells Fargo & Company dropped their price target on Chubb from $285.00 to $267.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 24th. UBS Group dropped their price target on Chubb from $304.00 to $292.00 and set a "neutral" rating on the stock in a research note on Monday, July 28th. Evercore ISI set a $312.00 price objective on Chubb in a report on Wednesday, July 23rd. Piper Sandler restated a "neutral" rating and set a $283.00 price objective (down previously from $335.00) on shares of Chubb in a report on Thursday, July 24th. Finally, HSBC downgraded Chubb from a "buy" rating to a "hold" rating and decreased their price objective for the company from $317.00 to $300.00 in a report on Friday, August 1st. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $301.50.

Chubb Price Performance

Chubb stock opened at $269.62 on Thursday. The stock's 50 day moving average is $281.03 and its 200 day moving average is $282.31. The company has a debt-to-equity ratio of 0.18, a current ratio of 0.28 and a quick ratio of 0.28. The firm has a market cap of $107.49 billion, a P/E ratio of 11.89, a P/E/G ratio of 3.03 and a beta of 0.53. Chubb has a one year low of $252.16 and a one year high of $306.91.

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

Chubb Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 3rd. Stockholders of record on Friday, June 13th were given a $0.97 dividend. The ex-dividend date was Friday, June 13th. This is a positive change from Chubb's previous quarterly dividend of $0.91. This represents a $3.88 annualized dividend and a dividend yield of 1.4%. Chubb's dividend payout ratio (DPR) is presently 17.12%.

Chubb announced that its Board of Directors has authorized a stock repurchase program on Thursday, May 15th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to repurchase up to 4.3% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its shares are undervalued.

Insider Activity

In related news, COO John W. Keogh sold 85,083 shares of the business's stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $290.24, for a total value of $24,694,489.92. Following the sale, the chief operating officer directly owned 237,728 shares in the company, valued at approximately $68,998,174.72. The trade was a 26.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Michael Corbat bought 425 shares of the firm's stock in a transaction that occurred on Friday, July 25th. The stock was purchased at an average price of $269.80 per share, for a total transaction of $114,665.00. Following the completion of the transaction, the director directly owned 2,450 shares of the company's stock, valued at $661,010. This represents a 20.99% increase in their position. The disclosure for this purchase can be found here. Insiders have sold 100,390 shares of company stock worth $29,163,135 over the last ninety days. Corporate insiders own 0.77% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of CB. Peoples Bank KS purchased a new position in Chubb in the 1st quarter worth $25,000. Opal Wealth Advisors LLC purchased a new position in Chubb in the 1st quarter worth $25,000. North Capital Inc. purchased a new position in Chubb in the 1st quarter worth $26,000. IMA Advisory Services Inc. purchased a new position in Chubb in the 1st quarter worth $31,000. Finally, 1248 Management LLC purchased a new position in Chubb in the 1st quarter worth $31,000. Institutional investors own 83.81% of the company's stock.

Chubb Company Profile

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.

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