Short Interest in Chubb Limited (NYSE:CB) Expands By 20.9%

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Chubb Limited (NYSE:CB) was the target of a significant increase in short interest during the month of October. As of October 30th, there was short interest totalling 2,840,000 shares, an increase of 20.9% from the October 15th total of 2,350,000 shares. Approximately 0.6% of the company’s stock are short sold. Based on an average daily volume of 1,890,000 shares, the days-to-cover ratio is presently 1.5 days.

Several analysts have commented on CB shares. Credit Suisse Group lifted their price objective on shares of Chubb from $144.00 to $152.00 and gave the stock an “outperform” rating in a research report on Tuesday, November 3rd. Bank of America raised shares of Chubb from an “underperform” rating to a “neutral” rating and lifted their price objective for the stock from $123.00 to $132.00 in a research report on Thursday, October 29th. They noted that the move was a valuation call. JPMorgan Chase & Co. raised shares of Chubb from a “neutral” rating to an “overweight” rating and set a $152.00 price objective on the stock in a research report on Monday, October 12th. Barclays started coverage on shares of Chubb in a research report on Tuesday, November 17th. They issued an “overweight” rating and a $171.00 price objective on the stock. Finally, Zacks Investment Research lowered shares of Chubb from a “hold” rating to a “strong sell” rating and set a $97.00 price objective on the stock. in a research report on Wednesday, September 30th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and eleven have given a buy rating to the company’s stock. Chubb currently has a consensus rating of “Buy” and an average price target of $146.82.

In related news, Director Theodore Shasta sold 948 shares of the business’s stock in a transaction dated Monday, November 16th. The shares were sold at an average price of $151.87, for a total transaction of $143,972.76. Following the transaction, the director now directly owns 15,738 shares in the company, valued at $2,390,130.06. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Evan G. Greenberg sold 132,504 shares of the business’s stock in a transaction dated Tuesday, November 10th. The stock was sold at an average price of $148.86, for a total transaction of $19,724,545.44. Following the transaction, the chief executive officer now owns 814,578 shares in the company, valued at $121,258,081.08. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 146,031 shares of company stock worth $21,697,079. 0.37% of the stock is owned by corporate insiders.

A number of hedge funds have recently added to or reduced their stakes in the business. Oakworth Capital Inc. grew its stake in Chubb by 9.2% in the 3rd quarter. Oakworth Capital Inc. now owns 893 shares of the financial services provider’s stock worth $104,000 after buying an additional 75 shares in the last quarter. BBVA USA Bancshares Inc. boosted its stake in shares of Chubb by 2.6% in the 2nd quarter. BBVA USA Bancshares Inc. now owns 3,257 shares of the financial services provider’s stock valued at $412,000 after purchasing an additional 84 shares in the last quarter. Point View Wealth Management Inc. boosted its stake in shares of Chubb by 1.2% in the 2nd quarter. Point View Wealth Management Inc. now owns 7,037 shares of the financial services provider’s stock valued at $891,000 after purchasing an additional 86 shares in the last quarter. Winslow Evans & Crocker Inc. boosted its stake in shares of Chubb by 8.7% in the 3rd quarter. Winslow Evans & Crocker Inc. now owns 1,100 shares of the financial services provider’s stock valued at $128,000 after purchasing an additional 88 shares in the last quarter. Finally, Pacifica Partners Inc. boosted its stake in shares of Chubb by 18.0% in the 3rd quarter. Pacifica Partners Inc. now owns 590 shares of the financial services provider’s stock valued at $69,000 after purchasing an additional 90 shares in the last quarter. 76.80% of the stock is owned by institutional investors and hedge funds.

NYSE:CB traded up $1.51 during mid-day trading on Friday, hitting $148.88. 2,042,176 shares of the stock traded hands, compared to its average volume of 2,332,575. The business’s 50-day moving average price is $130.26 and its 200 day moving average price is $124.83. The company has a market cap of $67.20 billion, a PE ratio of 29.66, a price-to-earnings-growth ratio of 2.16 and a beta of 0.59. Chubb has a 12-month low of $87.35 and a 12-month high of $167.74. The company has a quick ratio of 0.32, a current ratio of 0.32 and a debt-to-equity ratio of 0.26.

Chubb (NYSE:CB) last issued its quarterly earnings data on Sunday, November 1st. The financial services provider reported $2.00 EPS for the quarter, missing the consensus estimate of $2.19 by ($0.19). The firm had revenue of $10.09 billion for the quarter, compared to analysts’ expectations of $9.54 billion. Chubb had a net margin of 6.24% and a return on equity of 5.33%. During the same period in the prior year, the firm posted $2.70 EPS. Analysts anticipate that Chubb will post 7 earnings per share for the current fiscal year.

Chubb declared that its board has approved a share buyback program on Thursday, November 19th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 2.3% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s board of directors believes its shares are undervalued.

The business also recently declared a quarterly dividend, which will be paid on Friday, January 8th. Shareholders of record on Friday, December 18th will be paid a $0.78 dividend. The ex-dividend date of this dividend is Thursday, December 17th. This represents a $3.12 dividend on an annualized basis and a yield of 2.10%. Chubb’s dividend payout ratio is presently 30.86%.

Chubb Company Profile

Chubb Limited, through its subsidiaries, provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, marine, casualty, workers' compensation, package policies, risk management, professional 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 in the United States, Canada, and Bermuda.

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