Psagot Value Holdings Sells Majority Stake in The Travelers Companies
Date: September 14, 2023
Psagot Value Holdings Ltd. Israel has recently reduced its ownership in The Travelers Companies, Inc. (NYSE:TRV) by 72.7% during the first quarter of the fiscal year as stated in its latest 13F filing with the Securities & Exchange Commission. The firm’s holdings were down to 900 shares after selling 2,400 shares, amounting to a total value of $152,000 according to their most recent SEC filing.
On July 20th, Travelers Companies reported its earnings results for the quarter and missed analysts’ consensus estimates by a significant margin. The insurance provider recorded an EPS (Earnings Per Share) of $0.06, falling short of the estimated $2.05 by ($1.99). While it still maintained a net margin of 5.77% and a return on equity of 10.75%, the revenue for the period was $10.10 billion compared to expectations of $9.97 billion. However, when comparing with the previous year, there was a positive growth rate of 10.5% in quarterly revenue.
Market analysts have recently released reports discussing TRV’s performance. StockNews.com initiated coverage on Travelers Companies with a “hold” rating on August 17th, while Piper Sandler reduced their price target from $208 to $176 on July 6th in their research note about TRV stocks.
Another research report published by Jefferies Financial Group on July 25th saw them lower their price objective from $183 to $180 and maintain a “hold” rating for the company.
Morgan Stanley also reiterated that Travelers Companies is rated as an “equal weight” stock and set a target price of $185 on July 21st.
JPMorgan Chase & Co., on the other hand, increased their price target from $185 to $194 on July 6th.
In total, eight equities research analysts have rated Travelers Companies as “hold,” five have given it a “buy” rating, and one analyst has assigned a strong buy rating. As per Bloomberg.com data, the company currently holds a consensus rating of “Moderate Buy” and an average price target of $196.08.
Despite the recent decrease in holdings by Psagot Value Holdings Ltd. Israel and disappointing earnings results for the quarter, Travelers Companies continues to be assessed with cautious optimism by market analysts. Investors are advised to monitor these developments closely as they consider their investment strategies moving forward.
Changes in Ownership and Analyst Ratings Impact Travelers Companies (TRV) Stock
Travelers Companies, Inc. (TRV) has seen some changes in its ownership as several institutional investors have modified their holdings of the stock. EP Wealth Advisors LLC acquired a new position in Travelers Companies during the first quarter, purchasing shares worth approximately $4,962,000. Golden State Equity Partners and Macquarie Group Ltd. also acquired new positions, with the former buying shares valued at $248,000 and the latter increasing its stake by 5.6% to own 163,655 shares worth $28,053,000.
Additionally, Fortis Group Advisors LLC purchased a new stake in Travelers Companies for around $369,000 during the first quarter, while ProShare Advisors LLC acquired a new stake valued at approximately $38,191,000. These institutional investors and hedge funds now collectively own 81.12% of the company’s stock.
On September 14, 2023, TRV stock opened at $163.13. The insurance provider has a current ratio and quick ratio of 0.33 each and a debt-to-equity ratio of 0.37. With a market capitalization of $37.35 billion and a P/E ratio of 17.37, the company appears to be underperforming compared to its peers.
The business has been experiencing volatility in its stock price over the past year due to several factors including changing analyst reports and executive-level transactions. StockNews.com initiated coverage on Travelers Companies with a “hold” rating on August 17th this year.
Piper Sandler reduced their price target on TRV from $208.00 to $176.00 on July 6th while Jefferies Financial Group lowered theirs from $183.00 to $180 on July 25th along with reiterating their “hold” rating for the company.
Morgan Stanley reaffirmed an “equal weight” rating with a target price of $185.00, while JPMorgan Chase & Co. increased their target price from $185.00 to $194.00 on July 6th. In total, eight equities research analysts have given a hold rating, five have assigned a buy rating, and one recommends a strong buy.
On the dividend front, Travelers Companies recently announced its quarterly dividend to be paid on September 29th. Shareholders of record as of September 8th will receive a $1.00 dividend, representing an annualized yield of 2.45%. The company’s dividend payout ratio (DPR) is 42.60%, indicating that it distributes a significant portion of its earnings to shareholders.
In terms of executive transactions, EVP Michael Frederick Klein sold 10,000 shares of TRV stock at an average price of $175.05 per share on July 24th. Following the sale, Klein now owns 14,080 shares valued at approximately $2,464,704.
TRV has experienced noteworthy changes in its ownership by institutional investors and hedge funds in recent times. These modifications could potentially influence the company’s performance and indicate certain sentiments about its future prospects.
Disclaimer: The information provided does not constitute financial advice or recommendations for investment decisions as it is purely for informational purposes only. Investors are encouraged to conduct their own research and consult with financial professionals before making any investment decisions based on this article’s content or the information provided herein