Key Points
- Hanover Insurance EVP Dennis Francis Kerrigan sold 6,262 shares on May 20 for about $1.21 million at an average price of $192.99, reducing his direct stake by 34.31%.
- The company beat first-quarter expectations, reporting EPS of $5.25 versus $4.14 expected and revenue of $1.70 billion versus $1.58 billion, with revenue up 6.1% year over year.
- The Hanover board authorized a $700 million share repurchase plan and the company recently paid a quarterly dividend of $0.95 per share, implying a 1.9% annualized yield.
The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) EVP Dennis Francis Kerrigan sold 6,262 shares of The Hanover Insurance Group stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $192.99, for a total value of $1,208,503.38. Following the sale, the executive vice president directly owned 11,988 shares of the company's stock, valued at $2,313,564.12. This trade represents a 34.31% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.
The Hanover Insurance Group Trading Up 0.6%
The Hanover Insurance Group stock opened at $195.65 on Friday. The company has a quick ratio of 0.37, a current ratio of 0.37 and a debt-to-equity ratio of 0.22. The Hanover Insurance Group, Inc. has a 52 week low of $160.70 and a 52 week high of $199.59. The company has a market capitalization of $6.85 billion, a price-to-earnings ratio of 9.85 and a beta of 0.31. The stock has a 50-day moving average price of $179.88 and a 200 day moving average price of $178.73.
The Hanover Insurance Group (NYSE:THG - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share for the quarter, topping the consensus estimate of $4.14 by $1.11. The company had revenue of $1.70 billion for the quarter, compared to the consensus estimate of $1.58 billion. The Hanover Insurance Group had a return on equity of 21.55% and a net margin of 10.77%.The firm's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period last year, the firm earned $3.87 EPS. Sell-side analysts anticipate that The Hanover Insurance Group, Inc. will post 18.45 EPS for the current year.
The Hanover Insurance Group declared that its board has initiated a stock repurchase plan on Wednesday, May 13th that permits the company to repurchase $700.00 million in shares. This repurchase authorization permits the insurance provider to repurchase up to 10.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.
The Hanover Insurance Group Announces Dividend
The company also recently announced a quarterly dividend, which was paid on Friday, March 27th. Investors of record on Friday, March 13th were paid a $0.95 dividend. This represents a $3.80 annualized dividend and a dividend yield of 1.9%. The ex-dividend date was Friday, March 13th. The Hanover Insurance Group's payout ratio is currently 19.12%.
Institutional Inflows and Outflows
A number of large investors have recently added to or reduced their stakes in THG. Norges Bank purchased a new stake in The Hanover Insurance Group during the 4th quarter worth approximately $83,817,000. Alliancebernstein L.P. raised its position in shares of The Hanover Insurance Group by 36.1% during the 2nd quarter. Alliancebernstein L.P. now owns 1,280,418 shares of the insurance provider's stock worth $217,505,000 after acquiring an additional 339,896 shares in the last quarter. AQR Capital Management LLC raised its position in shares of The Hanover Insurance Group by 37.8% during the 3rd quarter. AQR Capital Management LLC now owns 763,431 shares of the insurance provider's stock worth $137,967,000 after acquiring an additional 209,616 shares in the last quarter. Invesco Ltd. raised its position in shares of The Hanover Insurance Group by 44.1% during the 4th quarter. Invesco Ltd. now owns 646,910 shares of the insurance provider's stock worth $118,236,000 after acquiring an additional 197,930 shares in the last quarter. Finally, Balyasny Asset Management L.P. raised its position in shares of The Hanover Insurance Group by 206.0% during the 3rd quarter. Balyasny Asset Management L.P. now owns 292,121 shares of the insurance provider's stock worth $53,058,000 after acquiring an additional 196,655 shares in the last quarter. 86.61% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth
Several analysts have commented on the company. Citigroup reissued an "outperform" rating on shares of The Hanover Insurance Group in a report on Thursday, April 30th. Oppenheimer increased their price target on The Hanover Insurance Group from $205.00 to $220.00 and gave the company an "outperform" rating in a report on Thursday. Royal Bank Of Canada increased their price target on The Hanover Insurance Group from $190.00 to $195.00 and gave the company a "sector perform" rating in a report on Friday, May 1st. BMO Capital Markets cut The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and increased their price target for the company from $194.00 to $203.00 in a report on Tuesday. Finally, Citizens Jmp increased their price target on The Hanover Insurance Group from $200.00 to $205.00 and gave the company a "market outperform" rating in a report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $205.86.
Read Our Latest Research Report on THG
About The Hanover Insurance Group
(
Get Free Report)
The Hanover Insurance Group, Inc (NYSE: THG) is a property and casualty insurance company that provides a range of commercial and personal insurance products. Through its subsidiary companies, Hanover offers coverage for businesses of all sizes, including workers' compensation, general liability, commercial auto, and professional liability. On the personal lines side, the company underwrites homeowners, personal auto, flood, and umbrella policies designed to meet the needs of individuals and families.
In addition to its core commercial and personal insurance offerings, Hanover maintains a specialty arm that focuses on niche markets through tailored product solutions.
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