Chubb Stock Jumps After Buffett's Berkshire Reveals $6.7B StakeChubb shares ( NYSE:CB ) jumped over 8% in late trade on Wednesday after Warren Buffett's Berkshire Hathaway revealed a $6.7 billion stake in the Zurich-based insurer. Buffett recently told shareholders that property-casualty insurance provides the core of Berkshire's well-being and growth. Berkshire had been building its position in Chubb since 2023, but had not previously disclosed the stake after the SEC granted it permission to keep the holding confidential.
Berkshire's stake of nearly 26 million shares in Chubb ( NYSE:CB ), one of the world's largest publicly traded property-casualty insurers, had a market value of around $6.7 billion as of March 31, making it the conglomerate's nineth largest holding. The investment is driven by Berkshire's heavy footprint in the insurance industry, which Buffett recently told shareholders that "property-casualty insurance" provides the core of Berkshire's well-being and growth.
The stock has continued to track higher since bottoming out in June last year, with the trend gathering momentum after the 50-day moving average crossed above the 200-day MA to form a bullish golden cross signal. Recently, the stock has traded within an ascending triangle, indicating a continuation of the longer-term uptrend.
Moreover, Chubb ( NYSE:CB ) has a Relative Strength Index (RSI) of 71.75 which is overbought hence, a trend reversal might lurk in the corners.
Chubblimited
CB is a good buy stock for long term investors For the investors who look for long-run performance, this is for you.
Chubb Limited, incorporated in Zürich, Switzerland, is a global provider of insurance products covering property and casualty, accident and health, reinsurance, and life insurance and the largest publicly traded property and casualty company in the world.
The insurance sector is the best opportunity for long-term investing especially for a global company like Chubb.
By reviewing the company profile we noticed:
The net income for the last 3 years was :
(8,816B for 2021) ( 3,533B for 2020) (4,454B for 2019) ( 3,962B for 2018)
Year over year ratio YOY %:
+149.53% for 2021
-20.68% for 2020
+12.42% for 2019
EBIT:
(10,515 B for 2021) ( 4,678 B in 2020 ) ( 5,801 B in 2019) (5,298 B in 2018)
Year over year ratio YOY % :
+124.77% in 2021
-19.36% in 2020
+9.49 % in 2019
Free Cash Flow 11,093B for 2021
9,785B for 2020
6,342B for 2019
5,480B for 2018
Cash Flow incresing rate
13.36% in 2021
54.28% in 2020
15.73% in 2019
for the assets
Total assets & Debt
199,054 B for 2021 with 15,131 B (Debt)
190,774 B for 2020 with 15,256 B (Debt)
176,943 B for 2019 with 13,867 B (Debt)
167,771 B for 2018 with 12,395 B (Debt)
Debt-to-assets ratio %:
7.60% for 2020
8.00% for 2020
7.84% for 2020
7.39% for 2020
Top Institutional Holders
Holder ---------------------Shares------------- Date Reported ---------% Out -------------Value
Vanguard Group, Inc. (The) : 35,555,260 Sep 29, 2021 7.90% 6,168,126,504
Wellington Management Group, LLP: 28,179,660 Sep 29, 2021 6.26% 4,888,607,416
Blackrock Inc ^ : 27,411,957 Sep 29, 2021 6.09% 4,755,426,300
Capital International Investors ^:22,357,084 Sep 29, 2021 4.97% 3,878,506,932
State Street Corporation ^ :22,003,925 Sep 29, 2021 4.89% 3,817,240,909
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Final view
The net income is increasing annually with a high ratio
EBIT is increasing with a high ratio
The cash flow increasing ratio is high
Asset value increased over the years
The debt ratio is low which is a good sign
Chubb Limited is a good buy stock for long term investors
For the position:
Buy limit on 190$ -185$ area
Buy limit at 157$ -163$ area
buy limit at 140 $ -143 $ area in case the price makes a strong move against our position
Targets:
Take profit every 50% profit
We expect to see a continuous increase in CB stock
Chubb has been oversold on news. Buy This Dip?I have changed up how to best display projected movement. In the case of CB, 1 of my algorithms signaled a BUY on March 22, 2021. Equities nearly always obey the signal and move up, but sometimes it may continue to move down first.
I have placed two red boxes and two green boxes on the chart. The larger red box depicts all of the historical movement, from a percentage standpoint, that this stock has moved on the 3 Hour chart after a BUY signal occurred. Therefore, this box represents 100% of previous movement downward before the stock finally moved upward. The smaller red box represents 50% of all historical movement downward, before the stock moved upward. The smaller box is more of a precise target for the potential bottom in this instance.
The green boxes represent the same thing. In this instance, the smaller green box would be my projected target for the final top.
The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement.
As always, the stock could rise the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never rise (and the green boxes may never come into play).
All statistics and the full analysis are available for free as always at the site below.