Key Points
- Director sale: Hanover Insurance director Francisco Aristeguieta sold 1,000 shares on May 21 for about $195,370, reducing his stake by 19.79% to 4,053 shares.
- Strong quarterly results: The company reported EPS of $5.25 versus the $4.14 consensus estimate and revenue of $1.70 billion, both ahead of expectations. Quarterly revenue rose 6.1% year over year.
- Capital return and analyst outlook: Hanover authorized a $700 million stock buyback covering up to 10.6% of shares outstanding, while analysts currently rate the stock Moderate Buy with an average target price of $207.
The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) Director Francisco Aristeguieta sold 1,000 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $195.37, for a total transaction of $195,370.00. Following the completion of the sale, the director directly owned 4,053 shares of the company's stock, valued at $791,834.61. The trade was a 19.79% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.
The Hanover Insurance Group Price Performance
The Hanover Insurance Group stock opened at $195.97 on Wednesday. The Hanover Insurance Group, Inc. has a 52-week low of $160.70 and a 52-week high of $199.59. The firm has a fifty day moving average of $181.19 and a 200-day moving average of $179.18. The firm has a market capitalization of $6.86 billion, a P/E ratio of 9.86 and a beta of 0.31. 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 (NYSE:THG - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.14 by $1.11. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%. The company had revenue of $1.70 billion during the quarter, compared to analyst estimates of $1.58 billion. During the same quarter in the prior year, the business earned $3.87 earnings per share. The business's quarterly revenue was up 6.1% compared to the same quarter last year. As a group, analysts predict that The Hanover Insurance Group, Inc. will post 18.45 EPS for the current year.
The Hanover Insurance Group announced that its board has initiated a stock repurchase program on Wednesday, May 13th that allows the company to repurchase $700.00 million in shares. This repurchase authorization allows the insurance provider to reacquire up to 10.6% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's leadership believes its shares are undervalued.
Analysts Set New Price Targets
Several research firms have recently issued reports on THG. BMO Capital Markets lowered shares of The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and increased their price objective for the stock from $194.00 to $203.00 in a research report on Tuesday, May 19th. Royal Bank Of Canada increased their price objective on shares of The Hanover Insurance Group from $190.00 to $195.00 and gave the stock a "sector perform" rating in a research report on Friday, May 1st. Weiss Ratings raised shares of The Hanover Insurance Group from a "buy (b+)" rating to a "buy (a-)" rating in a report on Friday. Citizens Jmp raised their price target on shares of 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. Finally, Piper Sandler raised their price target on shares of The Hanover Insurance Group from $212.00 to $220.00 and gave the company an "overweight" rating in a report on Tuesday. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $207.00.
View Our Latest Analysis on The Hanover Insurance Group
Institutional Investors Weigh In On The Hanover Insurance Group
Large investors have recently added to or reduced their stakes in the company. AlphaQuest LLC grew its holdings in The Hanover Insurance Group by 563.1% during the 3rd quarter. AlphaQuest LLC now owns 13,296 shares of the insurance provider's stock valued at $2,415,000 after purchasing an additional 11,291 shares in the last quarter. ProShare Advisors LLC grew its holdings in The Hanover Insurance Group by 5.6% during the 3rd quarter. ProShare Advisors LLC now owns 213,676 shares of the insurance provider's stock valued at $38,810,000 after purchasing an additional 11,415 shares in the last quarter. First Trust Advisors LP grew its holdings in The Hanover Insurance Group by 28.5% during the 3rd quarter. First Trust Advisors LP now owns 639,264 shares of the insurance provider's stock valued at $116,110,000 after purchasing an additional 141,835 shares in the last quarter. Channing Capital Management LLC grew its holdings in The Hanover Insurance Group by 73.6% during the 3rd quarter. Channing Capital Management LLC now owns 68,641 shares of the insurance provider's stock worth $12,467,000 after acquiring an additional 29,106 shares in the last quarter. Finally, Capula Management Ltd acquired a new position in The Hanover Insurance Group during the 3rd quarter worth $1,877,000. 86.61% of the stock is owned by institutional investors and hedge funds.
The Hanover Insurance Group Company Profile
(
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.
Further Reading
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