Fifth Third Bancorp has increased its stake in financial services provider Chubb Limited by 6.2% in a recent filing with the US Securities and Exchange Commission (SEC). The Ohio-based bank now owns more than 192,000 shares of Chubb, which were worth $42.4m as of the latest SEC report. The purchase comes in spite of a number of mixed reviews on the stock from analysis teams over recent weeks. While Royal Bank of Canada and Atlantic Securities have upped their price targets for Chubb, Citigroup lowered theirs and BMO Capital Markets gave the company a “market perform” rating.
Chubb’s stock value stood at $196.68 at market open on Tuesday, with a 50-day moving average of $206.10 and 200-day moving average of $207.30. With a market capitalisation of around $81bn, Chubb has experienced highs and lows over the past twelve months, ranging between $173.78 and $231.37.
Chubb Limited: Strong Growth Prospects Despite Shareholder Activity
Chubb Limited, a leading global provider of insurance for commercial and personal needs, has been making headlines in recent weeks. On the financial front, several large investors have purchased shares of the company, including Armstrong Advisory Group Inc., Fiduciary Alliance LLC, Arlington Partners LLC, My Personal CFO LLC, and Boyd Watterson Asset Management LLC OH. As a result, hedge funds and other institutional investors now own 87.12% of Chubb’s stock.
Meanwhile, insiders have been selling off some of their shares. COO John W. Keogh sold 23,871 shares on February 28th at an average price of $212.18 per share. Following the transaction, he now holds 272,062 shares worth over $57 million. Director Theodore Shasta also sold 1,000 shares on March 20th at an average price of $189.73 per share.
Despite these developments, analysts remain bullish on Chubb’s long-term growth prospects. Roth Capital reiterated its “buy” rating for the company in early February, while Citigroup lowered its target price from $236 to $229 but maintained a “neutral” rating.
Chubb last announced its quarterly earnings data on February 1st. While the company missed analysts’ consensus estimates for earnings per share ($4.05 compared to expectations of $4.22), it reported revenue of $11.43 billion for the quarter – slightly below estimates of $11.58 billion but still impressive given industry headwinds.
Looking forward into this fiscal year and beyond, experts predict that Chubb will continue to perform well both financially and within the wider insurance sector. The company recently declared a quarterly dividend of $0.83 per share to be paid on April 10th – evidence perhaps that management agrees with this optimistic outlook for shareholders.