Chubb Limited (NYSE:CB) Sees Significant Decrease in Short Interest

Chubb Limited (NYSE:CB) was the target of a significant drop in short interest in August. As of August 31st, there was short interest totalling 1,570,000 shares, a drop of 18.2% from the August 15th total of 1,920,000 shares. Based on an average trading volume of 1,790,000 shares, the short-interest ratio is currently 0.9 days. Approximately 0.4% of the shares of the stock are sold short.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on CB shares. Citigroup lifted their target price on Chubb from $229.00 to $235.00 in a report on Thursday, July 27th. Royal Bank of Canada restated an “outperform” rating and issued a $245.00 price target on shares of Chubb in a research report on Tuesday, August 29th. Morgan Stanley lifted their price objective on shares of Chubb from $192.00 to $209.00 and gave the stock an “equal weight” rating in a research report on Tuesday, August 1st. BMO Capital Markets raised their target price on Chubb from $200.00 to $210.00 in a research report on Thursday, July 27th. Finally, Piper Sandler decreased their price objective on Chubb from $248.00 to $237.00 in a research report on Thursday, July 6th. Three analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $242.79.

Chubb Stock Performance

CB opened at $214.10 on Tuesday. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.34 and a current ratio of 0.34. The company has a market cap of $87.94 billion, a PE ratio of 15.38, a price-to-earnings-growth ratio of 1.17 and a beta of 0.65. The stock has a 50-day moving average of $200.96 and a 200-day moving average of $197.36. Chubb has a 52-week low of $173.78 and a 52-week high of $231.37.

Chubb (NYSE:CB) last announced its quarterly earnings results on Tuesday, July 25th. The financial services provider reported $4.92 EPS for the quarter, beating the consensus estimate of $4.41 by $0.51. Chubb had a return on equity of 13.56% and a net margin of 12.47%. The company had revenue of $10.68 billion for the quarter, compared to the consensus estimate of $11.24 billion. During the same quarter last year, the company posted $4.20 earnings per share. The company’s revenue for the quarter was up 9.8% compared to the same quarter last year. As a group, equities research analysts forecast that Chubb will post 18.18 earnings per share for the current fiscal year.

Chubb declared that its board has authorized a stock repurchase program on Monday, June 12th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the financial services provider to reacquire up to 6.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.

Chubb Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 6th. Shareholders of record on Friday, September 15th will be issued a dividend of $0.86 per share. This represents a $3.44 dividend on an annualized basis and a yield of 1.61%. The ex-dividend date is Thursday, September 14th. Chubb’s dividend payout ratio (DPR) is 24.71%.

Insider Activity

In other Chubb news, insider John J. Lupica sold 8,398 shares of the company’s stock in a transaction that occurred on Thursday, July 27th. The stock was sold at an average price of $211.74, for a total value of $1,778,192.52. Following the completion of the sale, the insider now directly owns 154,049 shares in the company, valued at $32,618,335.26. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, CAO Annmarie T. Hagan sold 1,187 shares of the business’s stock in a transaction that occurred on Thursday, July 27th. The shares were sold at an average price of $211.81, for a total value of $251,418.47. Following the sale, the chief accounting officer now directly owns 13,234 shares in the company, valued at approximately $2,803,093.54. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider John J. Lupica sold 8,398 shares of the firm’s stock in a transaction that occurred on Thursday, July 27th. The stock was sold at an average price of $211.74, for a total transaction of $1,778,192.52. Following the sale, the insider now owns 154,049 shares of the company’s stock, valued at $32,618,335.26. The disclosure for this sale can be found here. Insiders sold 22,534 shares of company stock worth $4,645,275 over the last three months. Corporate insiders own 0.37% of the company’s stock.

Institutional Trading of Chubb

Several hedge funds have recently added to or reduced their stakes in CB. Exeter Financial LLC grew its holdings in shares of Chubb by 0.9% during the second quarter. Exeter Financial LLC now owns 5,873 shares of the financial services provider’s stock valued at $1,128,000 after buying an additional 50 shares during the last quarter. Carolinas Wealth Consulting LLC grew its holdings in Chubb by 10.1% during the first quarter. Carolinas Wealth Consulting LLC now owns 555 shares of the financial services provider’s stock worth $119,000 after buying an additional 51 shares in the last quarter. Eagle Bluffs Wealth Management LLC raised its position in Chubb by 2.7% in the 2nd quarter. Eagle Bluffs Wealth Management LLC now owns 2,001 shares of the financial services provider’s stock valued at $385,000 after buying an additional 52 shares during the last quarter. Monte Financial Group LLC lifted its stake in Chubb by 1.1% during the 2nd quarter. Monte Financial Group LLC now owns 4,985 shares of the financial services provider’s stock valued at $960,000 after acquiring an additional 52 shares in the last quarter. Finally, Wealthcare Advisory Partners LLC lifted its stake in Chubb by 3.1% during the 2nd quarter. Wealthcare Advisory Partners LLC now owns 1,772 shares of the financial services provider’s stock valued at $341,000 after acquiring an additional 53 shares in the last quarter. Institutional investors own 86.30% 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, cyber risk, surety, and excess casualty; and group accident and health insurance to large, middle market, and small commercial businesses.