Travelers Companies (NYSE:TRV) Shares Gap Down After Earnings Miss

The Travelers Companies, Inc. (NYSE:TRV) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $223.12, but opened at $206.08. Travelers Companies shares last traded at $207.25, with a volume of 4,185,190 shares traded.

The insurance provider reported $4.69 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.75 by ($0.06). The company had revenue of $11.23 billion during the quarter, compared to analyst estimates of $10.62 billion. Travelers Companies had a net margin of 7.32% and a return on equity of 13.94%. Travelers Companies’s revenue was up 15.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.11 EPS.

Travelers Companies Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Monday, June 10th will be paid a $1.05 dividend. This is a boost from Travelers Companies’s previous quarterly dividend of $1.00. This represents a $4.20 annualized dividend and a dividend yield of 1.96%. The ex-dividend date is Monday, June 10th. Travelers Companies’s payout ratio is 29.72%.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. Oppenheimer reaffirmed a “market perform” rating on shares of Travelers Companies in a research report on Friday, April 5th. HSBC raised their target price on Travelers Companies from $218.00 to $240.00 and gave the stock a “hold” rating in a research report on Thursday, April 4th. Piper Sandler reaffirmed a “neutral” rating and set a $213.00 target price on shares of Travelers Companies in a research report on Monday, April 1st. JPMorgan Chase & Co. raised their target price on Travelers Companies from $194.00 to $213.00 and gave the stock an “underweight” rating in a research report on Monday, April 8th. Finally, Roth Mkm reissued a “buy” rating and issued a $240.00 price objective on shares of Travelers Companies in a research report on Thursday. Two equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, five have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, Travelers Companies has a consensus rating of “Hold” and an average target price of $220.78.

Insider Transactions at Travelers Companies

In related news, EVP Michael Frederick Klein sold 12,287 shares of Travelers Companies stock in a transaction that occurred on Tuesday, January 23rd. The shares were sold at an average price of $210.68, for a total value of $2,588,625.16. Following the sale, the executive vice president now owns 14,080 shares of the company’s stock, valued at approximately $2,966,374.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In related news, CFO Daniel S. Frey sold 38,000 shares of Travelers Companies stock in a transaction that occurred on Tuesday, February 6th. The shares were sold at an average price of $212.55, for a total value of $8,076,900.00. Following the sale, the chief financial officer now owns 14,810 shares of the company’s stock, valued at approximately $3,147,865.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Michael Frederick Klein sold 12,287 shares of Travelers Companies stock in a transaction that occurred on Tuesday, January 23rd. The stock was sold at an average price of $210.68, for a total transaction of $2,588,625.16. Following the completion of the sale, the executive vice president now directly owns 14,080 shares in the company, valued at approximately $2,966,374.40. The disclosure for this sale can be found here. Insiders have sold 109,775 shares of company stock worth $23,343,903 in the last 90 days. Insiders own 1.33% of the company’s stock.

Institutional Investors Weigh In On Travelers Companies

Hedge funds and other institutional investors have recently bought and sold shares of the business. Mn Services Vermogensbeheer B.V. raised its holdings in Travelers Companies by 1.5% during the 3rd quarter. Mn Services Vermogensbeheer B.V. now owns 111,547 shares of the insurance provider’s stock valued at $18,217,000 after acquiring an additional 1,600 shares during the period. Dynamic Advisor Solutions LLC increased its holdings in shares of Travelers Companies by 124.9% in the fourth quarter. Dynamic Advisor Solutions LLC now owns 13,775 shares of the insurance provider’s stock worth $2,660,000 after purchasing an additional 7,649 shares during the period. Worth Asset Management LLC bought a new position in shares of Travelers Companies in the fourth quarter worth $2,201,000. Nordea Investment Management AB increased its holdings in shares of Travelers Companies by 7.2% in the fourth quarter. Nordea Investment Management AB now owns 246,837 shares of the insurance provider’s stock worth $46,919,000 after purchasing an additional 16,580 shares during the period. Finally, DNB Asset Management AS increased its holdings in shares of Travelers Companies by 53.5% in the fourth quarter. DNB Asset Management AS now owns 69,503 shares of the insurance provider’s stock worth $13,240,000 after purchasing an additional 24,230 shares during the period. Institutional investors own 82.45% of the company’s stock.

Travelers Companies Trading Up 1.7 %

The stock has a market cap of $49.05 billion, a P/E ratio of 15.90, a PEG ratio of 1.08 and a beta of 0.58. The firm’s fifty day moving average price is $221.80 and its two-hundred day moving average price is $196.27. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.34 and a quick ratio of 0.34.

About Travelers Companies

The Travelers Companies, Inc, through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance.