The Travelers Companies Inc. (TRV) can make a big difference with a little luck

The Travelers Companies Inc. (NYSE: TRV) stock fell -2.42% on Friday to $157.06 against a previous-day closing price of $160.95. With 1.04 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.19 million shares. During the session, the Insurance – Property & Casualty company that operates in wider Financial sector, reached to the highest price of $161.79 whereas the lowest price it dropped to was $157.04. The 52-week range on TRV shows that it touched its highest point at $187.98 and its lowest point at $145.40 during that stretch. It currently has a 1-year price target of $175.12. With its current market cap of 37.69 billion, TRV has annualized dividend of $3.72 while the current yield stands at 2.37%. Beta for the stock currently stands at 0.61.

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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 TRV was down-trending over the past week, with a drop of -3.79%, but this was down by -7.14% over a month. Three-month performance dropped to -3.73% while six-month performance fell -14.03%. The stock gained 2.67% in the past year, while it has gained 0.40% so far this year. A look at the trailing 12-month EPS for TRV yields 14.42 with Next year EPS estimates of 14.78. For the next quarter, that number is 2.34. This implies an EPS growth rate of 37.80% for this year and 10.61% for next year. EPS is expected to grow by 3.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 7.10%.

Float and Shares Shorts:

At present, 238.40 million TRV shares are outstanding with a float of 236.81 million shares on hand for trading. On Aug 30, 2022, short shares totaled 4.14 million, which was 1.74% higher than short shares on Jul 28, 2022. In addition to Mr. Alan David Schnitzer as the firm’s Chairman & CEO, Mr. Daniel Stephen Frey serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 84.65% of TRV’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.67% of TRV, in contrast to 30.86% held by mutual funds. Shares owned by individuals account for 1.30%. As the largest shareholder in TRV with 8.77% of the stake, The Vanguard Group, Inc. holds 20,814,004 shares worth 20,814,004. A second-largest stockholder of TRV, Fidelity Management & Research Co, holds 18,062,334 shares, controlling over 7.61% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in TRV, holding 16,547,530 shares or 6.97% stake. With a 2.99% stake in TRV, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 7,103,945 shares are owned by the mutual fund manager. The SPDR Dow Jones Industrial Average, which owns about 2.42% of TRV stock, is the second-largest Mutual Fund holder. It holds 5,735,859 shares valued at 927.14 million. Vanguard 500 Index Fund holds 2.26% of the stake in TRV, owning 5,355,329 shares worth 865.64 million.

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 $551.00M net income for the quarter, which came to $3.56B over the last twelve months.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TRV since 24 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 16 believe that the stock is worth HOLDING, 1 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 TRV analysts setting a high price target of $190.00 and a low target of $156.00, the average target price over the next 12 months is $174.06. Based on these targets, TRV could surge 20.97% to reach the target high and fall by -0.67% to reach the target low. Reaching the average price target will result in a growth of 10.82% 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. TRV will report FY 2022 earnings on 01/24/2023. Analysts have provided yearly estimates in a range of $15.05 being high and $12.34 being low. For TRV, this leads to a yearly average estimate of $13.42. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The Travelers Companies Inc. surprised analysts by $0.60 when it reported $2.57 EPS against a consensus estimate of $1.97. The surprise factor in the prior quarter was $0.61. Based on analyst estimates, the high estimate for the next quarter is $3.63 and the low estimate is $1.15. The average estimate for the next quarter is thus $2.32.

Summary of Insider Activity:

Insiders traded TRV stock several times over the past three months with 2 Buys and 2 Sells. In these transactions, 11,692 shares were bought while 12,478 shares were sold. The number of buy transactions has increased to 62 while that of sell transactions has risen to 60 over the past year. The total number of shares bought during that period was 479,698 while 405,510 shares were sold.

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