Travelers (TRV, $130.43) disappoints on Q3 earnings
The Travelers Companies reported third quarter earnings which fell short of analysts’ expectations.
The insurance company’s third-quarter 2019 core earnings of $1.43 per share came in way lower than Zacks Consensus Estimate of $2.38.
Travelers’ total revenues increased + 4% from the year-ago quarter to $8 billion.
Net written premiums rose +7% year over year to a record $7.6 billion. This happened primarily due to increase in each of the business segments. Business and International Insurance net written premiums increased +7% year-over-year for the quarter, Bond & Specialty Insurance’s net written premiums grew +13%, and Personal Insurance had a +7% rise in net written premiums.
However, Travelers incurred underwriting loss of -$149 million, compared to underwriting income of $198 million in the year-ago period.
As for the different segment’s income in the quarter, Business Insurance’s was down - 60.2% year over year, Bond & Specialty Insurance’s fell -29.1%, and that of Personal Insurance dropped -14.4%.
Travelers repurchased 2.6 million shares worth $375 million in the quarter. The company now has $2.161 billion worth of shares remaining under its existing buyback authorization.
Also, the company’s board approved a quarterly dividend of 82 cents per share, which will be paid out on Dec 31, 2019 to shareholders of record at the close of business as of Dec 10, 2019
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
TRV's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for TRV turned positive on September 14, 2026. Looking at past instances where TRV's MACD turned positive, the stock continued to rise in 26 of 48 cases over the following month. The odds of a continued upward trend are 54%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 11, 2026. You may want to consider a long position or call options on TRV as a result. In 45 of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 54%.
Following a +0.40% 3-day Advance, the price is estimated to grow further. Considering data from situations where TRV advanced for three days, in 184 of 348 cases, the price rose further within the following month. The odds of a continued upward trend are 53%.
The Aroon Indicator entered an Uptrend today. In 163 of 323 cases where TRV Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 50%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 40 of 66 cases where TRV's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 61%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TRV declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 48%.
TRV broke above its upper Bollinger Band on September 11, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 1 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 55, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. TRV’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 60 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.359) is normal, around the industry mean (2.092). P/E Ratio (10.068) is within average values for comparable stocks, (15.053). Projected Growth (PEG Ratio) (2.360) is also within normal values, averaging (3.353). Dividend Yield (0.013) settles around the average of (0.018) among similar stocks. P/S Ratio (1.708) is also within normal values, averaging (1.594).
The Tickeron PE Growth Rating for this company is 63 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 97 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a provider of commercial, personal property and casualty insurance products
Industry PropertyCasualtyInsurance
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