Fintel reports that on October 2, 2023, JP Morgan downgraded their outlook for Chubb (NYSE:CB) from Overweight to Neutral.

Analyst Price Forecast Suggests 18.55% Upside

As of August 31, 2023, the average one-year price target for Chubb is 244.69. The forecasts range from a low of 193.92 to a high of $283.50. The average price target represents an increase of 18.55% from its latest reported closing price of 206.40.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Chubb is 42,328MM, a decrease of 8.97%. The projected annual non-GAAP EPS is 18.59.

Chubb Declares $0.86 Dividend

On August 10, 2023 the company declared a regular quarterly dividend of $0.86 per share ($3.44 annualized). Shareholders of record as of September 15, 2023 will receive the payment on October 6, 2023. Previously, the company paid $0.86 per share.

At the current share price of $206.40 / share, the stock’s dividend yield is 1.67%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.95%, the lowest has been 1.45%, and the highest has been 3.18%. The standard deviation of yields is 0.33 (n=236).

The current dividend yield is 0.85 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.24. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.10%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 2502 funds or institutions reporting positions in Chubb. This is a decrease of 19 owner(s) or 0.75% in the last quarter. Average portfolio weight of all funds dedicated to CB is 0.50%, a decrease of 3.60%. Total shares owned by institutions decreased in the last three months by 1.82% to 421,988K shares. The put/call ratio of CB is 1.06, indicating a bearish outlook.

What are Other Shareholders Doing?

Price T Rowe Associates holds 27,933K shares representing 6.80% ownership of the company. In it’s prior filing, the firm reported owning 28,822K shares, representing a decrease of 3.18%. The firm increased its portfolio allocation in CB by 101.83% over the last quarter.

Wellington Management Group Llp holds 18,384K shares representing 4.48% ownership of the company. In it’s prior filing, the firm reported owning 17,914K shares, representing an increase of 2.56%. The firm increased its portfolio allocation in CB by 589.77% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 12,901K shares representing 3.14% ownership of the company. In it’s prior filing, the firm reported owning 12,855K shares, representing an increase of 0.36%. The firm decreased its portfolio allocation in CB by 8.17% over the last quarter.

Massachusetts Financial Services holds 11,335K shares representing 2.76% ownership of the company. In it’s prior filing, the firm reported owning 11,202K shares, representing an increase of 1.18%. The firm decreased its portfolio allocation in CB by 3.36% over the last quarter.

Capital International Investors holds 11,313K shares representing 2.75% ownership of the company. In it’s prior filing, the firm reported owning 14,279K shares, representing a decrease of 26.22%. The firm decreased its portfolio allocation in CB by 26.33% over the last quarter.

Chubb Background Information
(This description is provided by the company.)

Chubb is the world’s largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs approximately 31,000 people worldwide

This article originally appeared on Fintel

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