Zacks Investment Research upgraded shares of Travelers Companies (NYSE:TRV) from a sell rating to a hold rating in a research note released on Friday morning.
According to Zacks, “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 using it to boost shareholders’ value and pursue growth initiatives. Solid retention and positive renewal rate change are the positives. With the rising interest rate environment, Travelers expects $20-$25 million higher after-tax net investment income on a quarterly basis in 2019. However, exposure to catastrophe loss remains headwind for underwriting results. Shares of Travelers have underperformed the industry year to date. Also, the Zacks Consensus estimate for 2018 moved south by one cent in the last seven days. Travelers is set to report third-quarter results on Oct 18. A Zacks Rank #3 and Earnings ESP of -2.12% makes positive surprise prediction difficult.”
Several other equities analysts also recently weighed in on TRV. ValuEngine downgraded shares of Travelers Companies from a hold rating to a sell rating in a research note on Monday, June 18th. Barclays reduced their target price on shares of Travelers Companies from $140.00 to $135.00 and set an equal weight rating on the stock in a research note on Monday, July 9th. Citigroup set a $144.00 target price on shares of Travelers Companies and gave the stock a buy rating in a research note on Thursday, July 12th. Sandler O’Neill reaffirmed a hold rating and set a $130.00 target price on shares of Travelers Companies in a research note on Friday, July 13th. Finally, Wells Fargo & Co reaffirmed a hold rating and set a $142.00 target price on shares of Travelers Companies in a research note on Thursday, July 19th. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating and five have given a buy rating to the company. The company has a consensus rating of Hold and a consensus price target of $137.93.
Shares of NYSE:TRV traded down $0.66 during midday trading on Friday, hitting $123.65. The company’s stock had a trading volume of 2,283,058 shares, compared to its average volume of 1,583,230. The company has a current ratio of 0.38, a quick ratio of 0.38 and a debt-to-equity ratio of 0.29. The company has a market cap of $34.72 billion, a P/E ratio of 16.98, a P/E/G ratio of 1.03 and a beta of 1.25. Travelers Companies has a 12-month low of $120.74 and a 12-month high of $150.55.
Travelers Companies (NYSE:TRV) last posted its quarterly earnings results on Thursday, July 19th. The insurance provider reported $1.81 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $2.43 by ($0.62). The business had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.35 billion. Travelers Companies had a return on equity of 8.84% and a net margin of 6.89%. On average, analysts expect that Travelers Companies will post 9.95 earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 28th. Shareholders of record on Monday, September 10th were paid a dividend of $0.77 per share. This represents a $3.08 dividend on an annualized basis and a yield of 2.49%. The ex-dividend date was Friday, September 7th. Travelers Companies’s dividend payout ratio (DPR) is presently 42.31%.
In other news, Vice Chairman Jay S. Benet sold 8,876 shares of the business’s stock in a transaction that occurred on Tuesday, August 21st. The shares were sold at an average price of $132.00, for a total value of $1,171,632.00. Following the sale, the insider now directly owns 94,176 shares of the company’s stock, valued at approximately $12,431,232. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Andy F. Bessette sold 8,892 shares of the business’s stock in a transaction that occurred on Friday, August 17th. The shares were sold at an average price of $130.78, for a total transaction of $1,162,895.76. Following the completion of the sale, the executive vice president now directly owns 10,551 shares in the company, valued at $1,379,859.78. The disclosure for this sale can be found here. 0.80% of the stock is owned by insiders.
Several institutional investors have recently added to or reduced their stakes in TRV. Bank of Montreal Can raised its stake in shares of Travelers Companies by 106.7% in the 3rd quarter. Bank of Montreal Can now owns 1,024,894 shares of the insurance provider’s stock valued at $132,939,000 after acquiring an additional 529,067 shares during the period. Millennium Management LLC raised its stake in shares of Travelers Companies by 655.9% in the 2nd quarter. Millennium Management LLC now owns 600,893 shares of the insurance provider’s stock valued at $73,513,000 after acquiring an additional 521,397 shares during the period. Rothschild Asset Management Inc. purchased a new stake in shares of Travelers Companies in the 2nd quarter valued at approximately $42,766,000. Bank of Nova Scotia raised its stake in shares of Travelers Companies by 489.9% in the 2nd quarter. Bank of Nova Scotia now owns 385,534 shares of the insurance provider’s stock valued at $47,166,000 after acquiring an additional 320,180 shares during the period. Finally, Altman Advisors Inc. purchased a new stake in shares of Travelers Companies in the 2nd quarter valued at approximately $1,808,000. 79.02% of the stock is currently owned by institutional investors and hedge funds.
Travelers Companies Company Profile
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.
Further Reading: Short Selling Stocks, A Beginner’s Guide
Get a free copy of the Zacks research report on Travelers Companies (TRV)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Travelers Companies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Travelers Companies and related companies with MarketBeat.com's FREE daily email newsletter.