WBH Advisory Reduces Chubb Holdings, Analysts Adjust Ratings

WBH Advisory Inc. has reduced its stake in Chubb Limited (NYSE: CB) by 4.2% during the second quarter of 2023. According to its recent filing with the Securities and Exchange Commission (SEC), the institutional investor sold 167 shares, leaving it with a total of 3,766 shares valued at approximately $1,091,000 at the end of June.

The adjustment in WBH Advisory’s holdings comes amidst a broader trend among institutional investors modifying their positions in Chubb. E Fund Management Co. Ltd. increased its stake by 3.9% in the first quarter, now owning 964 shares valued at $291,000 after acquiring an additional 36 shares. Similarly, Rise Advisors LLC raised its position by 4.6%, holding 841 shares valued at $254,000, following an acquisition of 37 shares.

Avantax Planning Partners Inc. and Sky Investment Group LLC also increased their stakes in Chubb. Avantax’s holdings rose by 5.1% to 783 shares, while Sky Investment Group boosted its holdings by 1.6% to 2,397 shares valued at $694,000. Lincoln Capital LLC similarly raised its position by 0.6%, now owning 6,962 shares valued at $2,022,000. Institutional investors collectively own 83.81% of Chubb’s shares.

Analysts Adjust Ratings and Price Targets

Recent reports from several equities research analysts indicate a mix of ratings and revised price targets for Chubb. On October 8, Wells Fargo & Company raised its target price for Chubb from $267.00 to $277.00, maintaining an “equal weight” rating. In contrast, HSBC Global Research downgraded Chubb from a “strong buy” to a “hold” rating on August 1.

Other analysts provided more optimistic projections. Keefe, Bruyette & Woods increased their price target from $324.00 to $333.00, awarding Chubb an “outperform” rating. JPMorgan Chase & Co. also elevated its target from $321.00 to $327.00, giving the stock a “neutral” rating. Additionally, Evercore ISI adjusted its target from $312.00 to $315.00 while maintaining an “outperform” rating.

Currently, two analysts have rated Chubb with a “strong buy,” six with a “buy,” twelve with a “hold,” and one with a “sell.” The consensus rating for the stock stands at “hold,” with a consensus price target of $305.28, according to MarketBeat.com.

Chubb’s Recent Performance and Future Outlook

As of October 10, Chubb’s stock opened at $268.16, showing a stable performance with a current ratio and quick ratio both at 0.28. The company’s debt-to-equity ratio is 0.18, and it boasts a market capitalization of $106.91 billion. Chubb’s price-to-earnings ratio is 11.83, with a one-year low of $252.16 and a high of $306.91. The 50-day and 200-day simple moving averages are $277.34 and $280.85, respectively.

Chubb reported impressive quarterly earnings on July 22, 2023, revealing an earnings per share (EPS) of $6.14, surpassing the consensus estimate of $5.84 by $0.30. The company generated revenue of $14.20 billion for that quarter, significantly exceeding the expected $12.53 billion. A year-over-year comparison shows a 6.3% increase in revenue, with a return on equity of 12.34% and a net margin of 16.08%.

Analysts forecast that Chubb Limited will achieve an EPS of 21.52 for the current year, indicating a positive outlook for the company’s performance.

Chubb also declared a quarterly dividend of $0.97 per share, paid on October 3, 2023, to stockholders of record as of September 12. This annualizes to a dividend of $3.88, yielding approximately 1.4%. The company has a dividend payout ratio of 17.12%.

In insider trading news, Director Michael Corbat purchased 425 shares on July 25, at an average price of $269.80 per share, totaling $114,665. This transaction increased his holdings to 2,450 shares, valued at $661,010.

Chubb Limited continues to be a key player in the insurance and reinsurance market, offering a wide range of products worldwide across various sectors.