Chubb Limited (NYSE: CB) stock fell -2.72% on Friday to $182.47 against a previous-day closing price of $187.58. With 1.33 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.6 million shares. During the session, the Insurance – Property & Casualty company that operates in wider Financial sector, reached to the highest price of $188.88 whereas the lowest price it dropped to was $182.40. The 52-week range on CB shows that it touched its highest point at $218.99 and its lowest point at $171.96 during that stretch. It currently has a 1-year price target of $230.63. With its current market cap of 77.38 billion, CB has annualized dividend of $3.32 while the current yield stands at 1.82%. Beta for the stock currently stands at 0.67.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CB was down-trending over the past week, with a drop of -5.58%, but this was down by -7.39% over a month. Three-month performance dropped to -3.73% while six-month performance fell -14.59%. The stock gained 3.79% in the past year, while it has lost -5.61% so far this year. A look at the trailing 12-month EPS for CB yields 16.57 with Next year EPS estimates of 17.55. For the next quarter, that number is 3.77. This implies an EPS growth rate of 147.30% for this year and 10.28% for next year. EPS is expected to grow by 14.32% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 16.80%.
Float and Shares Shorts:
At present, 421.62 million CB shares are outstanding with a float of 415.72 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.33 million, which was 0.55% higher than short shares on Jun 14, 2022. In addition to Mr. Evan G. Greenberg as the firm’s Exec. Chairman & CEO, Mr. John W. Keogh serves as its Pres & COO.
Through their ownership of 92.21% of CB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.57% of CB, in contrast to 34.91% held by mutual funds. Shares owned by individuals account for 0.73%. As the largest shareholder in CB with 8.65% of the stake, The Vanguard Group, Inc. holds 36,103,208 shares worth 36,103,208. A second-largest stockholder of CB, Wellington Management Co. LLP, holds 23,954,656 shares, controlling over 5.74% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in CB, holding 23,436,219 shares or 5.61% stake. With a 2.85% stake in CB, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 11,906,062 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.26% of CB stock, is the second-largest Mutual Fund holder. It holds 9,456,325 shares valued at 1.79 billion. Washington Mutual Investors Fund holds 1.81% of the stake in CB, owning 7,570,451 shares worth 1.43 billion.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. It generated $1.22B net income for the quarter, which came to $7.16B over the last twelve months.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CB since 24 analysts follow the stock currently. There are 14 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CB analysts setting a high price target of $260.00 and a low target of $165.00, the average target price over the next 12 months is $230.63. Based on these targets, CB could surge 42.49% to reach the target high and fall by -9.57% to reach the target low. Reaching the average price target will result in a growth of 26.39% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CB will report FY 2022 earnings on 01/31/2023. Analysts have provided yearly estimates in a range of $16.55 being high and $15.00 being low. For CB, this leads to a yearly average estimate of $15.92. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Chubb Limited surprised analysts by $0.58 when it reported $4.20 EPS against a consensus estimate of $3.62. The surprise factor in the prior quarter was $0.34. Based on analyst estimates, the high estimate for the next quarter is $4.29 and the low estimate is $3.20. The average estimate for the next quarter is thus $3.78.
Summary of Insider Activity:
Insiders traded CB stock several times over the past three months with 2 Buys and 1 Sells. In these transactions, 2,212 shares were bought while 667 shares were sold. The number of buy transactions has increased to 55 while that of sell transactions has risen to 83 over the past year. The total number of shares bought during that period was 448,782 while 502,787 shares were sold.