Travelers Companies (NYSE:TRV) Shares Gap Down After Earnings Miss

The Travelers Companies, Inc. (NYSE:TRV) shares gapped down before the market opened 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 trading hands.

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

Travelers Companies Increases Dividend

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

Analysts Set New Price Targets

A number of analysts have issued reports on TRV shares. Royal Bank of Canada reduced their price target on shares of Travelers Companies from $230.00 to $225.00 and set a “sector perform” rating on the stock in a report on Thursday. Raymond James lifted their price target on shares of Travelers Companies from $220.00 to $245.00 and gave the company a “strong-buy” rating in a report on Monday, January 22nd. Evercore ISI reduced their price target on shares of Travelers Companies from $253.00 to $250.00 and set an “outperform” rating on the stock in a report on Thursday. TD Cowen began coverage on shares of Travelers Companies in a research note on Wednesday, January 10th. They issued an “outperform” rating and a $247.00 price objective for the company. Finally, StockNews.com cut shares of Travelers Companies from a “buy” rating to a “hold” rating in a research note on Thursday. Two investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $220.78.

Insider Buying and Selling

In other Travelers Companies news, CFO Daniel S. Frey sold 38,000 shares of the business’s stock in a transaction dated Tuesday, February 6th. The shares were sold at an average price of $212.55, for a total value of $8,076,900.00. Following the completion of the sale, the chief financial officer now directly owns 14,810 shares of the company’s stock, valued at approximately $3,147,865.50. The transaction was disclosed in a filing with the SEC, which is available through this link. In other news, Vice Chairman William H. Heyman sold 4,500 shares of the business’s stock in a transaction dated Friday, February 2nd. The shares were sold at an average price of $215.06, for a total value of $967,770.00. Following the completion of the sale, the insider now owns 255,178 shares in the company, valued at approximately $54,878,580.68. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Daniel S. Frey sold 38,000 shares of the business’s stock in a transaction dated Tuesday, February 6th. The shares were sold at an average price of $212.55, for a total transaction of $8,076,900.00. Following the completion of the sale, the chief financial officer now owns 14,810 shares of the company’s stock, valued at approximately $3,147,865.50. The disclosure for this sale can be found here. In the last ninety days, insiders sold 109,775 shares of company stock valued at $23,343,903. Company insiders own 1.33% of the company’s stock.

Institutional Investors Weigh In On Travelers Companies

Several large investors have recently modified their holdings of TRV. Price T Rowe Associates Inc. MD raised its holdings in shares of Travelers Companies by 56.4% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 6,766,079 shares of the insurance provider’s stock valued at $1,288,871,000 after purchasing an additional 2,440,650 shares in the last quarter. Norges Bank bought a new stake in shares of Travelers Companies in the 4th quarter valued at about $282,593,000. Barclays PLC raised its holdings in shares of Travelers Companies by 215.5% in the 2nd quarter. Barclays PLC now owns 917,756 shares of the insurance provider’s stock valued at $159,378,000 after purchasing an additional 626,837 shares in the last quarter. Clearbridge Investments LLC raised its stake in shares of Travelers Companies by 15.8% during the 3rd quarter. Clearbridge Investments LLC now owns 4,575,759 shares of the insurance provider’s stock worth $747,267,000 after acquiring an additional 623,974 shares in the last quarter. Finally, Morgan Stanley raised its stake in shares of Travelers Companies by 19.6% during the 4th quarter. Morgan Stanley now owns 3,284,693 shares of the insurance provider’s stock worth $615,847,000 after acquiring an additional 539,294 shares in the last quarter. Institutional investors own 82.45% of the company’s stock.

Travelers Companies Stock 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 cap 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 firm’s 50 day moving average is $221.80 and its 200 day moving average is $196.27.

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.