Travelers Companies Stock Target Price and Analyst Consensus

TRV
 Stock
  

USD 171.56  2.75  1.63%   

The current analyst and expert consensus on Travelers Companies is Sell with 6 hold recommendations. The current projected Travelers Companies target price consensus is 166.7 with 10 analyst opinions. One of the most common ways The Travelers Companies analysts use to provide buy-or-sell recommendation to the public are conference calls analysis and financial statements evaluations. Some experts can also talk to Travelers Companies vendors, executives, and/or customers. Travelers Companies recommendation module provides expert sentiment on the projected The Travelers Companies target price to derive its highest and lowest estimates based on target price standard deviation of 11.055. Additionally, take a look at Macroaxis Advice on Travelers Companies to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.
  
Profit Margin is likely to climb to 11.43 in 2022, whereas Gross Profit is likely to drop slightly above 10.2 B in 2022. Travelers Companies Cash and Equivalents is fairly stable at the moment as compared to the past year. Travelers Companies reported Cash and Equivalents of 761 Million in 2021. Deferred Revenue is likely to climb to about 4.5 B in 2022, whereas Accumulated Other Comprehensive Income is likely to drop (891.1 M) in 2022.

Travelers Companies Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Travelers target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts performance other than comparing it to the past results via a very sophisticated attribution analysis. Travelers target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
Number of Opinions11
Lowered Outlook0
Raized Outlook0
Sell
Most Travelers analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand Travelers stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of The Travelers Companies, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Travelers Companies Target Price Projection

Travelers Companies' current and average target prices are 171.56 and 166.70, respectively. The current price of Travelers Companies is the price at which The Travelers Companies is currently trading. On the other hand, Travelers Companies' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Travelers Companies Market Quote on 12th of August 2022

Low Price169.33Odds
High Price171.62Odds

171.56

Target Price

Analyst Consensus On Travelers Companies Target Price

Low Estimate152.0Odds
High Estimate185.0Odds
Number of Analysts10
Standard Deviation11.055

166.7

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on The Travelers Companies and the information provided on this page.

Travelers Companies Analyst Ratings

Travelers Companies' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Travelers Companies stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Travelers Companies' financials, market performance, and future outlook by experienced professionals. Travelers Companies' historical ratings below, therefore, can serve as a valuable tool for investors.

Analyst Consensus Breakdown

Average Consensus Estimates

About Travelers Companies Target Price Projections

Travelers Companies's target price is an analyst's projection of its future price. Price targets can be assigned to all types of securities, from complex investment products to stocks such as The Travelers Companies and even bonds. If the target price is unavailable, it is most likely because there were not enough analyst opinions to come up with a consensus estimate. When setting a price target estimate, an analyst is trying to determine what the Stock is worth and where the price will be in a year from now. Generally, the target price of Travelers depends on its intrinsic valuation, beta (i.e., risk over market), and overall volatility. Most analysts publish their price targets in research reports on specific companies, along with their buy, hold, or sell recommendations. Stock price targets are often quoted in the financial news media. Macroaxis uses multiple feeds to provide overall target price projection for The Travelers Companies including analysis of its current option contracts.
Travelers Companies' latest option contracts expiring on 2022-08-19 are carrying combined implied volatility of 26.88 with a put-to-call open interest ratio of 1.09 over 58 outstanding agreements suggesting investors are buying slightly more puts than calls on contracts expiring on 2022-08-19. The current put volume is at 305, with calls trading at the volume of 154. This yields a 1.98 put-to-call volume ratio. The Travelers Companies option chain provides detailed quote and price information for the current The Travelers Companies option contracts. It shows all of Travelers Companies' listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-08-19 Option Contracts

Travelers Companies option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Travelers Companies' lending market. For example, when Travelers Companies' puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Travelers Companies, he or she must hedge the risk by shorting Travelers Companies stock over its option's life.
The chart above shows Travelers Companies' distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Travelers Companies' open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Travelers Companies' option, there is no secondary market available for investors to trade.

Travelers Companies Maximum Pain Price across 2022-08-19 Option Contracts

Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of particular securities such as Travelers Companies close to expiration to expire worthless. According to most research, approximately 10% to 15% of all stock options are exercised, while about 35% expire worthlessly, with roughly 50% traded out before the expiration date. So, Max pain occurs when market makers reach a net positive position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthless.
Travelers Companies' stock options are financial instruments that give investors the right to buy or sell shares of The Travelers Companies common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Travelers stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Travelers Companies' stock price goes up or down, the stock options follow.
Additionally, take a look at Macroaxis Advice on Travelers Companies to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.

The Travelers Companies In The Money Call Balance

When Travelers Companies' strike price is surpassing the current stock price, the option contract against The Travelers Companies stock is said to be in the money. When it comes to buying Travelers Companies' options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' option contracts written on The Travelers Companies are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.

Travelers Current Options Market Mood

Travelers Companies' open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Travelers Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.

Put-to-Call Open Interest

Put-to-Call Volume

Most options investors, including buyers and sellers of Travelers Companies' calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Travelers Companies' option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction. Using current Travelers Companies' option volume and open interest to make an investment decision is considered a contrarian-sentiment measure that can be utilized in many timing strategies in both derivative and spot marketplace.

Additional Travelers Companies Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Travelers Companies is a key component of Travelers Companies valuation and have some predictive power on the future returns of a Travelers Companies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Travelers Companies' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Travelers Companies in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
169.94171.54173.14
Details
Intrinsic
Valuation
LowReal ValueHigh
160.67162.27188.72
Details
Naive
Forecast
LowNext ValueHigh
175.77177.37178.97
Details
Earnings
Estimates (8)
LowProjected EPSHigh
12.1012.5813.25
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Travelers Companies. Your research has to be compared to or analyzed against Travelers Companies' peers to derive any actionable benefits. When done correctly, Travelers Companies' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in The Travelers Companies.

Additional Travelers Companies Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Travelers Companies is a key component of Travelers Companies valuation and have some predictive power on the future returns of a Travelers Companies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Travelers Companies' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Travelers Companies in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
169.94171.54173.14
Details
Intrinsic
Valuation
LowReal ValueHigh
160.67162.27188.72
Details
Naive
Forecast
LowNext ValueHigh
175.77177.37178.97
Details
Earnings
Estimates (8)
LowProjected EPSHigh
12.1012.5813.25
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Travelers Companies. Your research has to be compared to or analyzed against Travelers Companies' peers to derive any actionable benefits. When done correctly, Travelers Companies' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in The Travelers Companies.

Trending Themes

If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment.
Macroaxis Index
Invested less than 1 share
Additionally, take a look at Macroaxis Advice on Travelers Companies to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon. Note that the The Travelers Companies information on this page should be used as a complementary analysis to other Travelers Companies' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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The data published in Travelers Companies' official financial statements usually reflect Travelers Companies' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of The Travelers Companies. For example, before you start analyzing numbers published by Travelers accountants, it's critical to develop an understanding of what Travelers Companies' liquidity, profitability, and earnings quality are in the context of the Financial Services space in which it operates.
Please note, the presentation of Travelers Companies' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Travelers Companies' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Travelers Companies' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of The Travelers Companies. Please utilize our Beneish M Score to check the likelihood of Travelers Companies' management to manipulate its earnings.