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Jonathan M. Tisch, Director Emeritus of Loews Corp (NYSE:L), has recently sold a significant portion of the company’s stock, according to a filing with the Securities and Exchange Commission. The sale comes as Loews, with its $18 billion market capitalization, trades at a P/E ratio of 13.2 and has delivered a 10.6% return over the past year. Over a series of transactions from March 11 to March 13, Tisch disposed of 100,000 shares of Loews Corp common stock. These transactions were executed at prices ranging from $84.52 to $84.88 per share, resulting in a total sale value of approximately $8.48 million. According to InvestingPro, the stock currently trades near its 52-week high of $88.29, with analysis suggesting the shares may be undervalued.
Following these transactions, Tisch now holds 6,705,529 shares directly, with additional shares held indirectly by trusts and by his spouse. The sales were conducted as part of a series of planned transactions, with no indication of any strategic shift in Tisch’s investment approach toward Loews Corp. Notably, InvestingPro data reveals the company has maintained dividend payments for 55 consecutive years, demonstrating long-term financial stability. Get access to more detailed insights and 12+ additional ProTips by subscribing to InvestingPro.
In other recent news, Loews Corporation reported a decline in its fourth-quarter earnings, primarily due to higher catastrophe and investment losses at its insurance subsidiary, CNA Financial. The company posted a net income of $187 million, or $0.86 per share, down from $446 million, or $1.99 per share, in the same quarter last year. However, revenue increased to $4.55 billion from $4.26 billion year-over-year. The results included a $265 million after-tax pension settlement charge at CNA Financial, which significantly impacted earnings. Excluding this charge, net income would have been $452 million.
In other developments, Loews Corporation announced changes in executive compensation following a leadership transition with Benjamin J. Tisch assuming the role of President and CEO. The new compensation structure includes a base salary of $1 million and special stock appreciation rights (SARs) awards for key executives. These SARs are intended to incentivize and retain executives, with a grant date fair value of $4,093,500 for the Tisch brothers and $3,070,125 for CFO Jane Wang. Additionally, Loews repurchased 4.2 million shares of its common stock for $349 million during the quarter, contributing to a total of 7.7 million shares bought back for $611 million in 2024.
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