Travelers Stock Brushes Off Dismal Quarterly Report

The company expects coronavirus to have lasting effects

Deputy Editor
Apr 21, 2020 at 10:44 AM
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Shares of Travelers Companies Inc (NYSE:TRV) are up 2.6% to trade at $104.46 this morning, despite the company reporting a first-quarter earnings miss. The company reported profits of $2.62 per share and revenue of $7.35 billion, lower than Wall Street's anticipated $2.85 per share and $7.42 billion. CEO Alan Schnitzer says the industry will be impacted by lower premium levels as the economy contracts, and coronavirus will have lasting effects on the property and casualty insurance company for the remainder of 2020 and beyond. 

Rising on the charts since hitting a seven-year low on March 18, the recent resistance at the 40-day moving average has kept a cap on a breakout past the $110 region. Though up 13.7% in the last month, the equity is still down 25.7% year-to-date. 

Coming into today, 11 of the 17 analysts sport a tepid "hold" with the remaining six split between three considering a "strong buy" and three a "strong sell." Meanwhile, the 12-month consensus price target of $117.73 is 15.7% premium to current levels. 

 

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