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Based in New York, The Travelers Companies, Inc. (TRV) is a leading provider of property casualty insurance for auto, home and business. Valued at $47.75 billion by market cap, the company provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and TRV perfectly fits into that category, signifying its substantial size, stability, and dominance in its industry.
The leading insurer has fallen 8.9% from its 52-week high of $232.75, which it hit on Apr. 4. Shares of TRV are down 5.8% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 8.3% gains over the same time frame.
Longer term, TRV shares have risen 20.7% over the past year, and in 2024, the stock is up 11.3%. By contrast, the NASX is up 18.1% on a YTD basis and 29.7% over the past 52 weeks.
The stock has been trading below its 50-day moving average since mid-April but above its 200-day moving average since mid-November 2023.
On May 20, TRV shares closed down more than 1% after a federal appeals court ruled that TRV’s insurance unit should pay Dexon Computer’s legal fees in an underlying trademark dispute.
On Apr. 17, TRV shares closed down more than 7% after the company reported its Q1 results. Its core EPS came in at $4.69, falling short of the consensus estimate of $4.90.
Rival American Financial Group, Inc. (AFG) has underperformed TRV. AFG stock has gained 10.6% in the past 52 weeks and is up 7.3% on a YTD basis.
Despite its recent underperformance compared to the NASX, analysts are optimistic about TRV’s prospects. The stock has a consensus rating of “Moderate Buy” from the 23 analysts covering it, and the mean price target of $228.65 is a 7.9% premium to current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
