Chubb (NYSE:CB) Releases Quarterly Earnings Results, Beats Expectations By $0.49 EPS

Chubb (NYSE:CB) issued its quarterly earnings results on Tuesday. The financial services provider reported $7.26 earnings per share for the quarter, beating analysts’ consensus estimates of $6.77 by $0.49, Zacks reports. Chubb had a return on equity of 14.30% and a net margin of 18.58%.

Chubb Trading Up 0.7%

NYSE CB traded up $2.51 during mid-day trading on Tuesday, reaching $355.04. 2,342,462 shares of the stock were exchanged, compared to its average volume of 1,724,515. Chubb has a one year low of $264.10 and a one year high of $365.29. The stock has a market cap of $137.71 billion, a P/E ratio of 12.54, a P/E/G ratio of 1.82 and a beta of 0.40. The stock has a 50 day simple moving average of $332.98 and a 200-day simple moving average of $326.03. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.28 and a quick ratio of 0.28.

Chubb Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Friday, June 12th were issued a dividend of $1.02 per share. This represents a $4.08 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Friday, June 12th. This is a boost from Chubb’s previous quarterly dividend of $0.97. Chubb’s dividend payout ratio (DPR) is presently 14.41%.

Key Stories Impacting Chubb

Here are the key news stories impacting Chubb this week:

• Positive Sentiment: Chubb reported strong Q2 results, with core operating income per share up 18.2% to $7.26, consolidated net premiums written up 3.6% to $14.7 billion, and a solid P&C combined ratio of 83.8%, signaling healthy underwriting profitability. Article Title
• Positive Sentiment: Management also highlighted continued growth in P&C premiums, with P&C net premiums written rising 3.0% year over year, or 6.3% excluding large-account and E&S property business, which may reassure investors about underlying demand. Article Title
• Positive Sentiment: Chubb had already been viewed favorably ahead of earnings, with analysts expecting higher Q2 results and the company recently announcing a raised dividend and a $7.5 billion buyback plan, both of which support the stock’s appeal to income investors. Article Title
• Neutral Sentiment: Chubb also announced leadership changes at Tempest Re, appointing James Wixtead as Executive Chairman and Michael O’Donnell as President, a move that appears operational rather than a major stock-moving catalyst. Article Title
• Neutral Sentiment: Barclays kept a Hold rating on Chubb, which suggests some analysts still see limited near-term upside even after the earnings beat. Article Title

Insider Buying and Selling at Chubb

In related news, COO John W. Keogh sold 23,000 shares of the stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $321.51, for a total transaction of $7,394,730.00. Following the completion of the sale, the chief operating officer directly owned 203,322 shares of the company’s stock, valued at approximately $65,370,056.22. This trade represents a 10.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.37% of the stock is owned by corporate insiders.

Institutional Trading of Chubb

Hedge funds and other institutional investors have recently made changes to their positions in the stock. JPL Wealth Management LLC purchased a new position in Chubb during the third quarter worth about $46,000. Kemnay Advisory Services Inc. purchased a new stake in Chubb in the fourth quarter valued at approximately $66,000. Prosperity Bancshares Inc bought a new stake in Chubb during the fourth quarter valued at approximately $71,000. Rossby Financial LCC grew its stake in Chubb by 262.7% in the 4th quarter. Rossby Financial LCC now owns 272 shares of the financial services provider’s stock worth $85,000 after buying an additional 197 shares in the last quarter. Finally, Imprint Wealth LLC purchased a new position in Chubb in the 3rd quarter worth approximately $99,000. 83.81% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

CB has been the subject of several analyst reports. Weiss Ratings upgraded Chubb from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Monday, June 29th. JPMorgan Chase & Co. increased their price objective on Chubb from $340.00 to $370.00 and gave the company a “neutral” rating in a research report on Monday. Morgan Stanley increased their price objective on shares of Chubb from $330.00 to $340.00 and gave the company an “equal weight” rating in a report on Monday, July 6th. Bank of America lowered their price target on Chubb from $286.00 to $271.00 and set an “underperform” rating for the company in a research note on Tuesday, April 14th. Finally, Piper Sandler lifted their target price on Chubb from $340.00 to $374.00 and gave the stock a “neutral” rating in a report on Wednesday, July 15th. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Chubb presently has an average rating of “Hold” and an average price target of $359.09.

Chubb Company Profile

Chubb is a global property and casualty insurance company that underwrites a broad range of commercial and personal insurance products and related services. Its offerings include commercial property and casualty coverage, specialty liability, professional and management liability, cyber and technology insurance, marine and energy, surety, accident and health solutions, and high-net-worth personal lines such as homeowners, auto and valuables protection. Chubb serves businesses, individuals and institutions with tailored underwriting and risk-transfer solutions across multiple industry sectors.

In addition to core underwriting, Chubb provides risk engineering, loss control, claims management and risk consulting services intended to reduce loss severity and help clients manage exposures.