Zacks Investment Research upgraded shares of Travelers Companies (NYSE:TRV) from a hold rating to a buy rating in a research note issued to investors on Friday morning. Zacks Investment Research currently has $148.00 target price on the insurance provider’s stock.
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 research analysts have also issued reports on the stock. ValuEngine lowered shares of Travelers Companies from a buy rating to a hold rating in a research note on Wednesday, January 3rd. Royal Bank of Canada reiterated a buy rating and issued a $148.00 price target on shares of Travelers Companies in a research note on Friday, December 8th. Keefe, Bruyette & Woods reiterated a buy rating and issued a $152.00 price target on shares of Travelers Companies in a research note on Wednesday, December 6th. Goldman Sachs Group assumed coverage on shares of Travelers Companies in a research note on Monday, December 4th. They issued a sell rating and a $124.00 price target for the company. Finally, Wells Fargo & Co set a $125.00 price target on shares of Travelers Companies and gave the stock a hold rating in a research note on Tuesday, November 14th. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and nine have assigned a buy rating to the company. Travelers Companies presently has a consensus rating of Hold and a consensus target price of $134.38.
Travelers Companies (NYSE:TRV) last issued its quarterly earnings results on Thursday, October 19th. The insurance provider reported $0.91 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $2.10 by ($1.19). The business had revenue of $6.66 billion during the quarter, compared to the consensus estimate of $6.46 billion. Travelers Companies had a return on equity of 9.87% and a net margin of 8.56%. The firm’s revenue was up 4.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.40 earnings per share. equities research analysts expect that Travelers Companies will post 6.64 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, December 29th. Shareholders of record on Monday, December 11th were paid a dividend of $0.72 per share. The ex-dividend date of this dividend was Friday, December 8th. This represents a $2.88 dividend on an annualized basis and a yield of 2.19%. Travelers Companies’s dividend payout ratio is currently 33.33%.
Travelers Companies announced that its board has authorized a share repurchase plan on Monday, September 11th that permits the company to buyback shares. This buyback authorization permits the insurance provider to purchase shares of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.
In other news, EVP Michael Frederick Klein sold 20,077 shares of the firm’s stock in a transaction dated Tuesday, November 21st. The shares were sold at an average price of $130.68, for a total transaction of $2,623,662.36. Following the sale, the executive vice president now owns 21,619 shares of the company’s stock, valued at approximately $2,825,170.92. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Maria Olivo sold 33,225 shares of the firm’s stock in a transaction dated Wednesday, November 29th. The shares were sold at an average price of $134.18, for a total transaction of $4,458,130.50. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 55,302 shares of company stock valued at $7,347,753. 0.82% of the stock is owned by company insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the company. Fieldpoint Private Securities LLC purchased a new stake in shares of Travelers Companies during the 3rd quarter valued at about $106,000. Valeo Financial Advisors LLC purchased a new stake in shares of Travelers Companies during the 3rd quarter valued at about $108,000. Intellectus Partners LLC boosted its holdings in shares of Travelers Companies by 4.6% during the 2nd quarter. Intellectus Partners LLC now owns 933 shares of the insurance provider’s stock valued at $118,000 after acquiring an additional 41 shares during the last quarter. Thompson Siegel & Walmsley LLC boosted its holdings in shares of Travelers Companies by 3.6% during the 2nd quarter. Thompson Siegel & Walmsley LLC now owns 995 shares of the insurance provider’s stock valued at $126,000 after acquiring an additional 35 shares during the last quarter. Finally, Omnia Family Wealth LLC boosted its holdings in shares of Travelers Companies by 4.7% during the 2nd quarter. Omnia Family Wealth LLC now owns 1,015 shares of the insurance provider’s stock valued at $128,000 after acquiring an additional 46 shares during the last quarter. 78.49% of the stock is currently owned by hedge funds and other institutional investors.
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Travelers Companies Company Profile
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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