Latest news with #TheTravelersCompanies
Yahoo
29-05-2025
- Business
- Yahoo
Keefe Bruyette Raises Target as Travelers Companies (TRV) Divests Canadian Businesses
On Tuesday, May 27, The Travelers Companies Inc. (NYSE:TRV) announced an agreement to divest its personal insurance segment and most of its commercial insurance operations in Canada to Definity Financial Corp., a Canadian financial services company. The sale is valued at approximately $2.4 billion, implying an adjusted price-to-book value of 1.8 times, according to company data. However, after this deal, which is expected to close in the first quarter of 2026, The Travelers Companies will retain its Canadian surety business. A close-up image of an insurance policy with hands standing firmly on top, conveying security. Of the total proceeds, the company plans to use around $700 million for share buybacks in 2026, which are expected to be EPS accretive. The remaining proceeds will be used for operational and corporate purposes. Following the deal announcement, an analyst from Keefe Bruyette increased his price target on The Travelers Companies to $303 from $290 and reiterated his Outperform rating. The analyst was positive on the deal and expects higher return ratios to lead to better valuation multiples for the company. The Travelers Companies Inc. (NYSE:TRV) is a U.S.-based provider of property casualty insurance for auto, home, and business. While we acknowledge the potential of TRV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TRV and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
07-05-2025
- Business
- Yahoo
Is The Travelers Companies, Inc. (TRV) the Best Dow Stock?
We recently published a list of The Best and Worst Dow Stocks. In this article, we are going to take a look at where The Travelers Companies, Inc. (NYSE:TRV) stands against other Dow stocks. The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well. It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends. We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year. Methodology In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest. We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Is The Travelers Companies, Inc. (TRV) the Best Dow Stock? A woman signing a policy document while a representative from the insurance company looks on. The Travelers Companies, Inc. (NYSE:TRV) Number of Hedge Fund Holders: 52 Short Interest as of Apr 30, 2025: 1.42% The Travelers Companies, Inc. (NYSE:TRV) is a personal and commercial property and casualty insurance services and products provider to associations, businesses, individuals, and government units. The company recently received back-to-back upgrades from analysts, making it a great start to the year. The insurance company first earned an upgrade from Piper Sandler right after the solid Q4 earnings. Analysts noted that the stock was inexpensive and upgraded it from Neutral to Overweight with a raised price target of $310. Analysts Paul Newsome and Cam Bianchi favorably viewed its faster-than-expected recovery of personal lines profitability and sustainable margins in commercial lines. Following the same optimistic sentiment, Keefe, Bruyette & Woods also upgraded the insurer from Market Perform to Outperform. The firm pointed out a potential $1.39 billion overestimation of its 2024 loss reserves. Additionally, KBW increased its 2025 reserve release estimates from $315 million to $392 million, which raises its EPS estimates as well.
Yahoo
10-04-2025
- Business
- Yahoo
Travelers Companies Insiders Sell US$17m Of Stock, Possibly Signalling Caution
The fact that multiple The Travelers Companies, Inc. (NYSE:TRV) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period. Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, Alan Schnitzer, sold US$13m worth of shares at a price of US$266 per share. So we know that an insider sold shares at around the present share price of US$248. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Insiders in Travelers Companies didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! Check out our latest analysis for Travelers Companies I will like Travelers Companies better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying. Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Travelers Companies insiders own 0.4% of the company, currently worth about US$230m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders. The fact that there have been no Travelers Companies insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Travelers Companies insiders selling. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future . If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
The Travelers Companies, Inc. (NYSE:TRV): Among the Best Insurance Stocks to Buy According to Hedge Funds
We recently published a list of the 10 Best Insurance Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where The Travelers Companies, Inc. (NYSE:TRV) stands against the other insurance stocks held by hedge funds. The insurance stocks have done better in 2025 despite the losses from wildfires earlier this year. The industry-leading ETFs, SPDR S&P Insurance ETF and iShares US Insurance ETF, have surged nearly 6% and 8.60% year-to-date, respectively. At the same time, the S&P 500 index, which tracks large-cap stocks, has plunged over 8%. Read More: 10 Most Undervalued Insurance Stocks to Buy Now Investors are holding back as the market feels uneasy due to the tariff policies. The Trump Administration has addressed to the market that it plans to reposition the U.S. economy as a leader. The government has imposed heavy tariffs to drive companies to invest in the domestic market. The U.S. Treasury Secretary Scott Bessent acknowledged that these policies may create short-term disruption, even if they turn out to be effective eventually. Apart from the market-changing conditions in the U.S., there are geopolitical conflicts in Europe and the Middle East. Once again, the economic data is warning of a potential recession, and U.S. consumers are financially quitting. The changing economic landspace in the U.S. could have significant implications for insurers, leading to potential supply chain changes and shifts in overall profitability. According to the Underwriting Director at Lloyd's Market Association, Elizabeth Wooliston, the effects of tariffs on insurers will differ as increased uncertainty and market volatility could raise business risks. 'There is no doubt we are living in unpredictable times, and even looking at a 12-month insurance contract could feel as if we are trying to predict a long way ahead,' Wooliston added. She further said, 'In the U.S., as the end price of goods is likely to rise, the most obvious and immediate concern for insurers will be managing their 'value at risk', with brokers paying close attention to avoid underinsureance for their customers.' Apart from underwriting for profitability, insurers also rely on investing their capital in various financial instruments. If market uncertainty increases in the long term, it can hurt the overall profitability of insurers. However, analysts at Keefe, Bruyette & Woods believe that insurers should be able to overcome the tariff challenges. Industry players will potentially have enough time to request rate increases, which state regulators are likely to approve. The analysts expect the tariffs to mainly impact personal insurance, along with auto damage, commercial property, surety, and marine lines. These segments will potentially be hit harder by tariffs due to increased claim costs. Despite the current market circumstances and losses from wildfire, the insurance industry in the U.S. remains steady. The U.S. has some of the largest insurance companies that drive the overall market. An auto insurance adjustor discussing details of an accident with a policy holder. Our Methodology We used a Finviz screener to shortlist insurance companies with a market capitalization of more than $1 billion. We then looked for the insurance stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Finally, the 10 best insurance stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). No. of Hedge Fund Holders: 52 The Travelers Companies, Inc. (NYSE:TRV) provides property casualty insurance for auto, home, and businesses. It is the second-largest writer of U.S. commercial property casualty insurance and the sixth-largest in personal insurance via independent agents. Meyer Shields from Keefe, Bruyette & Woods recently upgraded the rating on TRV shares from Market Perform to Outperform. The analyst increased the price target from $268 to $275, following strong fourth-quarter results. The company posted a record core income of nearly $2.1 billion in Q4 2024, up by 30% from a year ago. The core income for the full year reached $5 billion, a rise of 64% year-over-year. The earnings per share in 2024 were around $21.58, also growing by 64% compared to 2023. The Travelers Companies, Inc. (NYSE:TRV) ended the year with record operating cash flows of $9.07 billion, indicating a strong financial position. For 2025, Shields expects the company's EPS to be around $21.75, a slight downgrade from a previous estimate of $22 per share. The adjustment was made because of losses incurred from California wildfires earlier this year. However, the analyst raised the earnings estimate for 2026 from $24.35 to $24.60 per share. Overall, TRV ranks 9th among the 10 best insurance stocks to buy now. While we acknowledge the potential of insurance companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TRV but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
03-04-2025
- Business
- Yahoo
Travelers Companies (TRV) Surge as Insurance Stocks Roar – Jim Cramer Says ‘They Can Go Much Higher!'
We recently published a list of . In this article, we are going to take a look at where The Travelers Companies, Inc. (NYSE:TRV) stands against other stocks that Jim Cramer highlighted. On Monday, Jim Cramer, the host of Mad Money, discussed the current market and he identified opportunities for investors amid the volatility. 'Alright, there's always a bull market somewhere. I end the show with that tagline every night. I say it because it's true. Look at today, the market looked hideous this morning, right on the heels of some horrific overnight futures action. But after the S&P 500 reached a level where it was down 10% from its highs. where it held last time, we started snapping back.' READ ALSO: Jim Cramer Looked At These 23 Stocks Recently and Jim Cramer Put These 16 Stocks Under a Microscope Cramer suggested that the market's swift recovery might be a result of an overly negative sentiment among investors. He theorized that the S&P 500's brief drop to the 10% mark could have triggered some buying activity as traders took advantage of the lower prices, possibly fueled by end-of-quarter retirement contributions. The selling pressure, he pointed out, seemed to dissipate, which could have allowed for a bounce in the market. However, Cramer cautioned that the movement was not just coincidental. It appeared to challenge the narrative that the economy was heading toward a stagflation scenario due to tariff-induced inflation. Cramer suggested that investor exhaustion over the current administration's unpredictability is a significant factor in the market's volatility. Cramer remarked that many investors are uncertain about what actions the president might take next, which has created a climate of fear and hesitation in the market. He noted that the bears had dominated the quarter, with a gloomy outlook prevailing throughout, which leaves little room for optimism. Yet, Cramer hinted that it might be shifting. He wondered if the negativity had simply reached a tipping point, which resulted in a shift in market dynamics. Cramer highlighted the mixed economic signals contributing to the market's turbulence. While inflation was on the decline, the president's tariffs were adding inflationary pressure. Unemployment was at historically low levels, yet certain policies from the administration had caused uncertainty and disruption. Cramer noted how the market had been performing well last year before political instability introduced a level of uncertainty that he had not seen since the Carter administration. 'Bottom line: Maybe Wednesday is the liberation day. It's just the day when American investors may be finally liberated from the president's not-so-pro-business attitude once he gets the tariffs out of the way.' For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 31. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey's database of over 1,000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 52 Coming to insurance companies, Cramer took The Travelers Companies, Inc.'s (NYSE:TRV) name as he said: 'The health insurers are all roaring too. Why? Because they're domestic, very hard to tariff and they can go much higher… When you look at the regular insurance companies, think AIG, Travelers, and Chubb, they're all winning and Chubb just hit a new all-time high. Now I think premiums can go higher and the insurers seem like a target poor environment for the President's tariffs. The insurers, by the way, they're not anybody's friends that I know of. The White House doesn't seem to mind though, so maybe they're a buy.' Travelers (NYSE:TRV) offers property and casualty insurance products and services for both commercial and personal needs. Back in 2013, Cramer was bullish on the company as he said, 'I would buy more. They're the best. ' Since then, TRV stock gained over 153%. Overall, TRV ranks 5th on our list of stocks that Jim Cramer highlighted. While we acknowledge the potential of TRV, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TRV but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
