Time To Be Bearish Or Bullish On Chubb Limited (NYSE:CB) Stock?

Stock analysts at Citigroup, assumed coverage of shares of Chubb Limited (NYSE:CB) with Neutral recommendation, according to their opinion released on January 21. Credit Suisse analysts bumped their recommendation on CB stock from prior rating of Underperform to Outperform in a separate flash note to investors on November 05.

Let’s take a glimpse at some insider activity at Chubb Limited (NYSE:CB) and observe the pattern. The earliest insider trade happened on 12/18/2019. Keogh John W parted with a total of 26.07 thousand shares of the firm at average share price of $155.41. The total amount for the sale was set at $4.05 million. On completing this exchange, the Executive Vice Chairman* account balance was 264.73 thousand shares. The stock grew 5.19 percent from that insider sale. On 12/17/2019, BOROUGHS TIMOTHY ALAN, Executive Vice President*, did a sale of 1.7 thousand shares at a price of $155.39 per share. This got rid of 264.16 thousand shares from the insider’s fortune and the stock experienced a 5.21 percent rally in price since the news became public. This exchange saw 171.23 thousand shares get out from the Executive Vice President* account. On 12/12/2019, Chairman & CEO GREENBERG EVAN G recorded a sale transaction valued at $24.23 million. The sale at $153.49 a share has eliminated 157.84 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 6.51 percent increase since the transaction reporting date. The company insider is left with 1.09 million shares remaining in the account. KRUMP PAUL J, who works as Executive Vice President* at the company, performed a sale of 15.56 thousand shares in a transaction worth $2.37 million. The disposal recorded on 11/14/2019 was priced at $152.07 per share. The stock price soared 7.5 percent since the transaction. KRUMP PAUL J currently holds a stake of 114.3 thousand in CB stock which is worth $18.67 million after the insider selling.

Chubb Limited (CB) is most likely going to rise -0.32 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $180 as 12-month high price target. This represents a whopping 10.19 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $164, which means a return possibility of 0.39 percent in comparison with the closing price of the stock of $163.36 in recent trading session. The lowest price set for the stock is $135 which is just above -17.36 percent from CB share’s price at the end of session.

The stock is lingering around the initial support level of $153.73. After this, the following support is at the zone of $153.15. Up until the time the CB stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 72.43 on the daily chart, and this may be a cause for concern. In case the price goes below $153.15 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $155.3 level may cause a pull-back move approaching $156.29 mark.

In the recent trading session, Chubb Limited (NYSE:CB) shares gained 5.87% or 9.06 points to reach at $163.36 with a thin trading volume of 1.541 million shares. It opened the trading session at $154.61, the shares rose to $155.72 and dropped to $154.15, the range by which the price of stock traded the whole session. The company now has a market cap of $70.9 billion and currently has 459.61 million outstanding shares. Chubb Limited (CB) stock has plunged -0.95 percent of market value in 21 trading days.

CB stock’s trailing 3-year beta is 0.65, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $7.85 share in the trailing 52 weeks. The stock’s value fallen -0.87 percent year to date (YTD) compared to a rise of 15.21 percent in 52 week’s period. The firm’s shares are still trading 0.57 percent below its 1-year high of $162.44 and 27.05 percent up from 52-week low of $128.58. The average consensus ranking on the company is 2.7, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Chubb Limited (CB) shares are trading at a P/E ratio of 19.37 times earnings posted in the trailing 12 months. The industry CB deals with has an average P/E of 21.2. Its P/B ratio is standing at 1.31X compared to the 2.18 industry average. It is additionally sporting a 2.21 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.16.

Past records have indicated that shares in Chubb Limited rose on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of CB’s Q1 earnings on April 21. Analysts are predicting revenue to climb 3.8 percent to $7.12B in the financial first quarter, while EPS will soar by about 7.48 percent to $2.73 per share. In the last quarter, it’s earnings of $2.6 per share came better than the $2.56059, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $8.01B, topping the $7.82B analysts had expected. Earnings are seen to rise by 16.5 percent this year, 10.71 percent in the coming year and the trend continues by 5.97 percent every year in the next 5 years.