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
The Stochastic Oscillator for TRV moved into overbought territory on November 08, 2024. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
The 10-day RSI Indicator for TRV moved out of overbought territory on October 23, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for TRV turned negative on October 29, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 of 62 cases within the following month. The odds of a continued downward trend are .
TRV broke above its upper Bollinger Band on October 17, 2024. 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.
The Momentum Indicator moved above the 0 level on November 08, 2024. You may want to consider a long position or call options on TRV as a result. In of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TRV advanced for three days, in of 355 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 54, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 (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 (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 (2.098) is normal, around the industry mean (2.168). P/E Ratio (17.839) is within average values for comparable stocks, (31.462). Projected Growth (PEG Ratio) (0.704) is also within normal values, averaging (1.023). Dividend Yield (0.018) settles around the average of (0.031) among similar stocks. P/S Ratio (1.281) is also within normal values, averaging (1.421).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than 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 (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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of commercial, personal property and casualty insurance products
Industry PropertyCasualtyInsurance