Chubb (NYSE:CB) Issues Quarterly Earnings Results, Beats Expectations By $0.89 EPS

Chubb (NYSE:CB) posted its quarterly earnings data on Tuesday. The financial services provider reported $7.66 EPS for the quarter, beating analysts’ consensus estimates of $6.77 by $0.89, Zacks reports. The firm had revenue of $16.20 billion for the quarter, compared to the consensus estimate of $15.71 billion. Chubb had a net margin of 18.15% and a return on equity of 14.33%. During the same period in the prior year, the firm posted $7.49 EPS.

Chubb Price Performance

Shares of NYSE:CB opened at $354.81 on Thursday. Chubb has a 52 week low of $272.20 and a 52 week high of $365.91. The firm’s 50 day moving average is $341.06 and its two-hundred day moving average is $337.07. The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 0.22. The firm has a market capitalization of $136.89 billion, a P/E ratio of 12.41, a PEG ratio of 1.57 and a beta of 0.36.

Chubb Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 2nd. Shareholders of record on Friday, September 11th were given a $1.02 dividend. The ex-dividend date was Friday, September 11th. This represents a $4.08 annualized dividend and a yield of 1.1%. Chubb’s dividend payout ratio is 14.43%.

More Chubb News

Here are the key news stories impacting Chubb this week:

• Positive Sentiment: Chubb reported third-quarter earnings of $7.66 per share, well above the $6.77 consensus estimate, while revenue of $16.20 billion also exceeded expectations. Earnings increased from $7.49 per share a year earlier. Chubb third-quarter earnings report
• Positive Sentiment: Core operating income reached approximately $2.98 billion. Record investment income, higher life-insurance income, strong underwriting results and 6.7% growth in Overseas General property-and-casualty premiums supported the quarter. Chubb Q3 earnings beat estimates
• Positive Sentiment: Zacks upgraded CB to a Rank #2, or Buy, citing improving earnings prospects. That upgrade may provide near-term support for the shares. Chubb upgraded to Buy
• Neutral Sentiment: The consensus analyst price target is $358.36, only modestly above the current trading level, suggesting much of the positive earnings performance may already be reflected in the valuation. Chubb consensus price target
• Negative Sentiment: Catastrophe losses continued to pressure underwriting, while Cantor Fitzgerald reaffirmed a Neutral rating with a $333 price target—well below the current price. Analysts have also questioned whether Chubb’s strong results are fully reflected in its valuation. Chubb valuation analysis

Insider Buying and Selling

In other news, Director Michael Connors sold 5,500 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $345.00, for a total value of $1,897,500.00. Following the completion of the transaction, the director directly owned 12,803 shares in the company, valued at $4,417,035. This trade represents a 30.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Joseph F. Wayland sold 8,502 shares of the stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $364.54, for a total value of $3,099,319.08. Following the transaction, the executive vice president directly owned 33,749 shares of the company’s stock, valued at approximately $12,302,860.46. The trade was a 20.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.37% of the company’s stock.

Analyst Upgrades and Downgrades

CB has been the topic of a number of recent analyst reports. Piper Sandler upped their target price on shares of Chubb from $340.00 to $374.00 and gave the company a “neutral” rating in a research note on Wednesday, July 15th. JPMorgan Chase & Co. decreased their price target on Chubb from $374.00 to $371.00 and set a “neutral” rating for the company in a research note on Friday, October 9th. Weiss Ratings raised Chubb from a “buy (b)” rating to a “buy (a)” rating in a report on Friday, October 16th. Evercore reissued an “outperform” rating and issued a $374.00 price objective on shares of Chubb in a report on Friday, July 10th. Finally, Morgan Stanley cut their price objective on Chubb from $360.00 to $350.00 and set an “equal weight” rating on the stock in a research note on Tuesday, October 6th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Chubb has an average rating of “Hold” and an average target price of $359.00.

About Chubb

Chubb Limited is a global insurance company that provides property and casualty, accident and health, life, and reinsurance products and services. Its offerings include commercial and personal property and casualty insurance, liability coverage, workers’ compensation, specialty insurance, travel insurance, and coverage for high-net-worth individuals.

The company serves businesses, individuals, and institutional customers through a network spanning North America, Latin America, Europe, Asia-Pacific, and other international markets.