Travelers Companies (NYSE:TRV) Shares Gap Down Following Weak Earnings

The Travelers Companies, Inc. (NYSE:TRV) gapped down prior to trading on Wednesday following a dissappointing 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.

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

Travelers Companies Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Shareholders of record on Monday, June 10th will be given a dividend of $1.05 per share. This represents a $4.20 dividend on an annualized basis and a yield of 1.96%. The ex-dividend date of this dividend is Monday, June 10th. This is a positive change from Travelers Companies’s previous quarterly dividend of $1.00. Travelers Companies’s payout ratio is 29.72%.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. UBS Group boosted their price target on Travelers Companies from $205.00 to $225.00 and gave the stock a “neutral” rating in a research report on Tuesday, January 23rd. StockNews.com lowered Travelers Companies from a “buy” rating to a “hold” rating in a research report on Thursday. Roth Mkm reissued a “buy” rating and issued a $240.00 price objective on shares of Travelers Companies in a research note on Thursday. Keefe, Bruyette & Woods dropped their price objective on Travelers Companies from $241.00 to $231.00 and set a “market perform” rating on the stock in a research note on Thursday. Finally, Oppenheimer reissued a “market perform” rating on shares of Travelers Companies in a research note on Friday, April 5th. Two investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating, five have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Travelers Companies currently has an average rating of “Hold” and an average target price of $220.78.

Insider Buying and Selling

In other Travelers Companies news, Vice Chairman William H. Heyman sold 26,633 shares of the company’s stock in a transaction that occurred on Tuesday, January 23rd. The stock was sold at an average price of $212.76, for a total value of $5,666,437.08. Following the completion of the transaction, the insider now owns 255,178 shares of the company’s stock, valued at approximately $54,291,671.28. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. In other news, Vice Chairman William H. Heyman sold 26,633 shares of the stock in a transaction that occurred on Tuesday, January 23rd. The stock was sold at an average price of $212.76, for a total value of $5,666,437.08. Following the completion of the transaction, the insider now directly owns 255,178 shares of the company’s stock, valued at approximately $54,291,671.28. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Paul E. Munson sold 2,121 shares of the stock in a transaction that occurred on Tuesday, January 23rd. The stock was sold at an average price of $212.86, for a total value of $451,476.06. Following the completion of the transaction, the senior vice president now directly owns 719 shares of the company’s stock, valued at $153,046.34. The disclosure for this sale can be found here. In the last 90 days, insiders sold 109,775 shares of company stock valued at $23,343,903. Insiders own 1.33% of the company’s stock.

Institutional Investors Weigh In On Travelers Companies

Large investors have recently bought and sold shares of the business. Mn Services Vermogensbeheer B.V. grew its position 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 worth $18,217,000 after acquiring an additional 1,600 shares during the last quarter. Dynamic Advisor Solutions LLC boosted its position in Travelers Companies by 124.9% in the 4th quarter. Dynamic Advisor Solutions LLC now owns 13,775 shares of the insurance provider’s stock valued at $2,660,000 after buying an additional 7,649 shares during the last quarter. Worth Asset Management LLC bought a new position in Travelers Companies in the 4th quarter valued at $2,201,000. Nordea Investment Management AB boosted its position in Travelers Companies by 7.2% in the 4th quarter. Nordea Investment Management AB now owns 246,837 shares of the insurance provider’s stock valued at $46,919,000 after buying an additional 16,580 shares during the last quarter. Finally, DNB Asset Management AS boosted its position in Travelers Companies by 53.5% in the 4th quarter. DNB Asset Management AS now owns 69,503 shares of the insurance provider’s stock valued at $13,240,000 after buying an additional 24,230 shares during the last quarter. 82.45% of the stock is currently owned by institutional investors.

Travelers Companies Price Performance

The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.34 and a current ratio of 0.34. The stock has a market capitalization of $49.05 billion, a P/E ratio of 15.90, a price-to-earnings-growth ratio of 1.08 and a beta of 0.58. The stock has a 50-day simple moving average of $221.80 and a 200 day simple moving average of $196.27.

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.