Travelers Companies Is Likely ‘Overearning,’ Says Bearish Analyst

Travelers Companies Inc (NYSE: TRV) is facing scrutiny from BofA Securities, which maintains an Underperform rating and a price target of $333, citing concerns that the company is 'overearning' despite recent large earnings beats. Analyst Joshua Shanker noted that while profits in auto and home insurance have reached record highs, the company is losing market share, with policy counts declining by 3.1% and 4.0% respectively over the past year. Additionally, Travelers' shares fell 0.93% to $385.90, and the analyst highlighted that the company’s historical earnings growth through stock buybacks is becoming less effective due to high stock prices.