The Travelers Companies, Inc. (TRV) Upgraded to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of The Travelers Companies, Inc. (NYSE:TRV) from a sell rating to a hold rating in a research report report published on Thursday.

According to Zacks, “Travelers’ third-quarter 2017 results outperformed the Zacks Consensus Estimate but deteriorated significantly year over year, mainly due to massive cat losses. Travelers boasts a strong market position as one of the leading writers of auto and homeowners’ insurance and commercial U.S. property-casualty insurance. Its inorganic growth story remains impressive. It has been generating sufficient capital, which it prudently deploys to enhance shareholders’ value. Solid retention and a positive renewal rate change are positives. However, a still low interest rate environment and adverse foreign currency movements continue to weigh on written premiums, while exposure to catastrophe losses pose headwind for underwriting results. Also, it estimates $15–$20 million lower after-tax net investment income on a quarterly basis. Shares of Travelers have underperformed the industry since the release of its third-quarter results.”

A number of other equities analysts also recently commented on the stock. Argus upped their target price on shares of The Travelers Companies from $139.00 to $145.00 and gave the stock a positive rating in a research note on Monday. They noted that the move was a valuation call. Royal Bank Of Canada upped their target price on shares of The Travelers Companies to $140.00 and gave the stock an outperform rating in a research note on Friday, October 20th. Citigroup Inc. upped their target price on shares of The Travelers Companies from $143.00 to $151.00 and gave the stock a buy rating in a research note on Friday, October 20th. Morgan Stanley upped their target price on shares of The Travelers Companies from $119.00 to $124.00 and gave the stock an underweight rating in a research note on Friday, October 20th. Finally, Wells Fargo & Company set a $125.00 target price on shares of The Travelers Companies and gave the stock a hold rating in a research note on Thursday, October 19th. Five equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and nine have given a buy rating to the company’s stock. The company has a consensus rating of Hold and an average price target of $127.71.

The Travelers Companies (TRV) traded down 0.67% during mid-day trading on Thursday, hitting $131.06. The company had a trading volume of 1,602,413 shares. The stock has a 50 day moving average price of $124.52 and a 200-day moving average price of $124.62. The stock has a market capitalization of $36.17 billion, a PE ratio of 13.05 and a beta of 1.20. The Travelers Companies has a 1-year low of $103.45 and a 1-year high of $134.47.

The Travelers Companies (NYSE:TRV) last issued its earnings results on Thursday, October 19th. The insurance provider reported $0.91 EPS for the quarter, missing the Zacks’ consensus estimate of $2.10 by ($1.19). The company had revenue of $6.66 billion during the quarter, compared to the consensus estimate of $6.46 billion. The Travelers Companies had a return on equity of 9.87% and a net margin of 8.56%. The Travelers Companies’s revenue was up 4.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.40 earnings per share. On average, analysts forecast that The Travelers Companies will post $7.51 earnings per share for the current year.

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The company also recently announced a quarterly dividend, which will be paid on Friday, December 29th. Shareholders of record on Monday, December 11th will be paid a $0.72 dividend. The ex-dividend date is Friday, December 8th. This represents a $2.88 annualized dividend and a yield of 2.20%. The Travelers Companies’s dividend payout ratio (DPR) is 33.45%.

The Travelers Companies announced that its Board of Directors has authorized a stock buyback plan on Monday, September 11th that permits the company to repurchase shares. This repurchase authorization permits the insurance provider to repurchase shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

In other The Travelers Companies news, Vice Chairman Jay S. Benet sold 5,518 shares of the firm’s stock in a transaction that occurred on Monday, July 31st. The shares were sold at an average price of $127.77, for a total value of $705,034.86. Following the completion of the sale, the insider now directly owns 82,824 shares in the company, valued at $10,582,422.48. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Andy F. Bessette sold 3,300 shares of the firm’s stock in a transaction that occurred on Tuesday, August 1st. The shares were sold at an average price of $128.50, for a total transaction of $424,050.00. Following the completion of the sale, the executive vice president now owns 10,000 shares of the company’s stock, valued at $1,285,000. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 74,754 shares of company stock valued at $9,661,690. 0.82% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Tradewinds Capital Management LLC raised its holdings in shares of The Travelers Companies by 1.1% in the second quarter. Tradewinds Capital Management LLC now owns 905 shares of the insurance provider’s stock worth $115,000 after buying an additional 10 shares during the last quarter. Community Bank N.A. raised its holdings in shares of The Travelers Companies by 0.7% in the second quarter. Community Bank N.A. now owns 1,435 shares of the insurance provider’s stock worth $181,000 after buying an additional 10 shares during the last quarter. First Business Financial Services Inc. raised its holdings in shares of The Travelers Companies by 0.5% in the second quarter. First Business Financial Services Inc. now owns 4,362 shares of the insurance provider’s stock worth $552,000 after buying an additional 20 shares during the last quarter. Northern Oak Wealth Management Inc. raised its holdings in shares of The Travelers Companies by 0.5% in the first quarter. Northern Oak Wealth Management Inc. now owns 4,873 shares of the insurance provider’s stock worth $587,000 after buying an additional 23 shares during the last quarter. Finally, Lee Danner & Bass Inc. raised its holdings in shares of The Travelers Companies by 0.4% in the second quarter. Lee Danner & Bass Inc. now owns 6,574 shares of the insurance provider’s stock worth $832,000 after buying an additional 24 shares during the last quarter. 77.30% of the stock is owned by institutional investors and hedge funds.

The 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.

Analyst Recommendations for The Travelers Companies (NYSE:TRV)

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