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

The Travelers Companies, Inc. (NYSE:TRV)’s stock price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. 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 analysts’ consensus estimates of $4.75 by ($0.06). Travelers Companies had a return on equity of 13.94% and a net margin of 7.32%. The company had revenue of $11.23 billion during the quarter, compared to the consensus estimate of $10.62 billion. During the same quarter in the prior year, the firm earned $4.11 earnings per share. The business’s revenue was up 15.7% compared to the same quarter last year.

Travelers Companies Increases Dividend

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

Analyst Upgrades and Downgrades

TRV has been the topic of a number of research reports. Piper Sandler reissued a “neutral” rating and issued a $213.00 price objective on shares of Travelers Companies in a report on Monday, April 1st. TD Cowen initiated coverage on shares of Travelers Companies in a report on Wednesday, January 10th. They issued an “outperform” rating and a $247.00 price objective on the stock. Raymond James raised their price objective on shares of Travelers Companies from $220.00 to $245.00 and gave the stock a “strong-buy” rating in a report on Monday, January 22nd. Roth Mkm reissued a “buy” rating and issued a $240.00 price objective on shares of Travelers Companies in a report on Thursday. Finally, Evercore ISI dropped their price objective on shares of Travelers Companies from $253.00 to $250.00 and set an “outperform” rating on the stock in a report 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 stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $220.78.

Insider Buying and Selling

In related news, CFO Daniel S. Frey sold 38,000 shares of the business’s stock in a transaction on 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 sale, the chief financial officer now owns 14,810 shares in the company, valued at $3,147,865.50. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In other news, EVP Michael Frederick Klein sold 12,287 shares of the company’s stock in a transaction dated Tuesday, January 23rd. The shares were sold at an average price of $210.68, for a total value of $2,588,625.16. Following the transaction, the executive vice president now directly owns 14,080 shares in the company, valued at $2,966,374.40. 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 company’s stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $212.55, for a total transaction of $8,076,900.00. Following the completion of the transaction, the chief financial officer now owns 14,810 shares in the company, valued at $3,147,865.50. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 109,775 shares of company stock worth $23,343,903. Insiders own 1.33% of the company’s stock.

Institutional Trading of Travelers Companies

A number of hedge funds have recently added to or reduced their stakes in the business. Wealth Quarterback LLC lifted its stake in Travelers Companies by 1.1% in the fourth quarter. Wealth Quarterback LLC now owns 4,333 shares of the insurance provider’s stock worth $825,000 after acquiring an additional 49 shares during the period. Kapitalo Investimentos Ltda lifted its position in shares of Travelers Companies by 24.1% during the fourth quarter. Kapitalo Investimentos Ltda now owns 252 shares of the insurance provider’s stock valued at $48,000 after buying an additional 49 shares during the last quarter. Massmutual Trust Co. FSB ADV lifted its position in shares of Travelers Companies by 9.8% during the first quarter. Massmutual Trust Co. FSB ADV now owns 561 shares of the insurance provider’s stock valued at $129,000 after buying an additional 50 shares during the last quarter. Norwood Financial Corp lifted its position in shares of Travelers Companies by 16.1% during the first quarter. Norwood Financial Corp now owns 360 shares of the insurance provider’s stock valued at $83,000 after buying an additional 50 shares during the last quarter. Finally, Grimes & Company Inc. lifted its position in shares of Travelers Companies by 2.2% during the fourth quarter. Grimes & Company Inc. now owns 2,420 shares of the insurance provider’s stock valued at $461,000 after buying an additional 53 shares during the last quarter. 82.45% of the stock is owned by hedge funds and other institutional investors.

Travelers Companies Trading Up 1.7 %

The firm has a market capitalization of $49.05 billion, a PE ratio of 15.90, a price-to-earnings-growth ratio of 1.08 and a beta of 0.58. The company’s 50-day simple moving average is $221.80 and its 200 day simple moving average is $196.27. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 0.32.

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.