Travelers Companies (NYSE:TRV) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Friday. The brokerage presently has a $148.00 price target on the insurance provider’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 11.78% from the stock’s previous close.
According to Zacks, “Shares of Travelers have outperformed the industry in the last three months. Travelers boasts a strong market position as one of the leading writers of auto and homeowners’ insurance and commercial U.S. property-casualty insurance with impressive inorganic growth story. It has been generating sufficient capital and prudently uses to boost shareholders’ value and pursue growth initiatives. Solid retention and positive renewal rate change are positives. But, exposure to catastrophe losses pose headwind for underwriting results. It estimates cat losses from California wildfires in $340–$440 million range for the fourth quarter. Still low interest rate environment restricts desired improvement in investment results and expects $15–$20 million lower after-tax net investment income on a quarterly basis. A Zacks Rank #2 and an Earnings ESP of -15.30% makes surprise prediction difficult for fourth quarter.”
Several other analysts also recently weighed in on TRV. Buckingham Research assumed coverage on Travelers Companies in a research note on Monday, September 11th. They set a “buy” rating and a $136.00 target price for the company. Credit Suisse Group cut their price target on Travelers Companies from $128.00 to $125.00 and set a “neutral” rating for the company in a report on Tuesday, September 12th. Wells Fargo & Co reaffirmed a “hold” rating and issued a $125.00 price target on shares of Travelers Companies in a report on Tuesday, September 12th. UBS Group cut their price target on Travelers Companies from $126.00 to $125.00 and set a “neutral” rating for the company in a report on Tuesday, September 19th. Finally, Citigroup cut their price target on Travelers Companies from $142.00 to $140.00 and set a “buy” rating for the company in a report on Monday, October 2nd. Four analysts have rated the stock with a sell rating, nine have issued a hold rating and eight have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $132.95.
Travelers Companies (NYSE:TRV) last announced its earnings results on Thursday, October 19th. The insurance provider reported $0.91 earnings per share for the quarter, missing the consensus estimate of $2.10 by ($1.19). Travelers Companies had a net margin of 8.56% and a return on equity of 9.87%. The business had revenue of $6.66 billion for the quarter, compared to the consensus estimate of $6.46 billion. During the same quarter in the previous year, the company earned $2.40 EPS. Travelers Companies’s revenue for the quarter was up 4.2% compared to the same quarter last year. sell-side analysts anticipate that Travelers Companies will post 6.74 EPS for the current fiscal year.
Travelers Companies declared that its Board of Directors has initiated a share buyback program on Monday, September 11th that authorizes the company to repurchase shares. This repurchase authorization authorizes the insurance provider to purchase shares of its stock through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its stock is undervalued.
In other news, EVP Maria Olivo sold 33,225 shares of the stock in a transaction that occurred on Wednesday, November 29th. The stock was sold at an average price of $134.18, for a total value of $4,458,130.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Michael Frederick Klein sold 20,077 shares of the stock in a transaction that occurred on Tuesday, November 21st. The stock was sold at an average price of $130.68, for a total value of $2,623,662.36. Following the completion of the transaction, the executive vice president now directly owns 21,619 shares of the company’s stock, valued at $2,825,170.92. The disclosure for this sale can be found here. Over the last three months, insiders sold 55,302 shares of company stock valued at $7,347,753. 0.82% of the stock is currently owned by insiders.
Hedge funds have recently added to or reduced their stakes in the stock. Carnick & Kubik Group LLC acquired a new stake in Travelers Companies during the 3rd quarter valued at $758,000. Robeco Institutional Asset Management B.V. acquired a new stake in Travelers Companies during the 3rd quarter valued at $78,058,000. Point72 Asset Management L.P. acquired a new stake in Travelers Companies during the 3rd quarter valued at $8,254,000. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. increased its holdings in Travelers Companies by 4.6% during the 3rd quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 58,457 shares of the insurance provider’s stock valued at $7,162,000 after purchasing an additional 2,567 shares in the last quarter. Finally, Vaughan David Investments Inc. IL increased its holdings in Travelers Companies by 1,454.3% during the 3rd quarter. Vaughan David Investments Inc. IL now owns 219,728 shares of the insurance provider’s stock valued at $26,387,000 after purchasing an additional 205,591 shares in the last quarter. 78.49% of the stock is owned by hedge funds and other institutional investors.
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About Travelers Companies
The Travelers Companies, Inc is a holding company. The Company’s segments include Business and International Insurance; Bond & Specialty Insurance, and Personal Insurance. Through its subsidiaries, it provides commercial and personal property and casualty insurance products and services. The Business and International Insurance segment offers property and casualty insurance and insurance related services to its clients, in the United States and in Canada, as well as in the United Kingdom, the Republic of Ireland, Brazil and throughout other parts of the world.
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