Travelers Companies (NYSE:TRV) Shares Gap Up After Earnings Beat

The Travelers Companies, Inc. (NYSE:TRV)’s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $242.95, but opened at $253.00. Travelers Companies shares last traded at $259.20, with a volume of 210,994 shares changing hands.

The insurance provider reported $5.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.79 by $1.45. The firm had revenue of $11.90 billion during the quarter, compared to the consensus estimate of $11.46 billion. Travelers Companies had a return on equity of 15.90% and a net margin of 8.37%. The company’s revenue for the quarter was up 11.9% on a year-over-year basis. During the same quarter last year, the company posted $1.95 EPS.

Travelers Companies Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 31st. Stockholders of record on Tuesday, December 10th will be issued a $1.05 dividend. This represents a $4.20 dividend on an annualized basis and a dividend yield of 1.58%. The ex-dividend date is Tuesday, December 10th. Travelers Companies’s payout ratio is currently 26.55%.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on TRV shares. Barclays began coverage on shares of Travelers Companies in a research note on Wednesday, September 4th. They issued an “overweight” rating and a $286.00 price objective for the company. StockNews.com upgraded shares of Travelers Companies from a “hold” rating to a “buy” rating in a research report on Tuesday. Bank of America lifted their price objective on Travelers Companies from $241.00 to $265.00 and gave the stock an “underperform” rating in a report on Thursday. Deutsche Bank Aktiengesellschaft increased their target price on Travelers Companies from $221.00 to $234.00 and gave the company a “hold” rating in a report on Wednesday, August 7th. Finally, Morgan Stanley decreased their price target on Travelers Companies from $220.00 to $210.00 and set an “equal weight” rating on the stock in a research note on Friday, July 19th. Four analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $235.42.

Insiders Place Their Bets

In related news, EVP Michael Frederick Klein sold 10,000 shares of Travelers Companies stock in a transaction that occurred on Thursday, July 25th. The stock was sold at an average price of $211.44, for a total transaction of $2,114,400.00. Following the sale, the executive vice president now directly owns 22,798 shares in the company, valued at $4,820,409.12. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 1.33% of the company’s stock.

Institutional Investors Weigh In On Travelers Companies

A number of institutional investors have recently modified their holdings of TRV. Y.D. More Investments Ltd purchased a new position in shares of Travelers Companies in the second quarter worth $25,000. Pathway Financial Advisers LLC purchased a new position in Travelers Companies in the 1st quarter worth about $35,000. Beacon Capital Management LLC grew its position in Travelers Companies by 74.2% in the 1st quarter. Beacon Capital Management LLC now owns 155 shares of the insurance provider’s stock worth $36,000 after purchasing an additional 66 shares during the period. Wolff Wiese Magana LLC raised its stake in Travelers Companies by 39.1% during the 3rd quarter. Wolff Wiese Magana LLC now owns 160 shares of the insurance provider’s stock valued at $37,000 after buying an additional 45 shares during the last quarter. Finally, Opal Wealth Advisors LLC purchased a new position in shares of Travelers Companies in the 1st quarter worth $42,000. 82.45% of the stock is owned by hedge funds and other institutional investors.

Travelers Companies Stock Up 0.2 %

The company has a market cap of $60.50 billion, a P/E ratio of 16.78, a price-to-earnings-growth ratio of 1.26 and a beta of 0.62. The company has a quick ratio of 0.33, a current ratio of 0.33 and a debt-to-equity ratio of 0.32. The company has a fifty day moving average of $231.88 and a 200 day moving average of $219.65.

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.