Citizens Jmp Forecasts Strong Price Appreciation for The Hanover Insurance Group (NYSE:THG) Stock

Key Points

• Citizens Jmp raised its price target for The Hanover Insurance Group from $240 to $250 while maintaining a “market outperform” rating, implying 6.85% upside. Analysts overall assign the stock a “Moderate Buy” consensus rating with an average target of $232.86.
• THG reported quarterly earnings of $5.15 per share, beating the $4.62 consensus estimate, although revenue of $1.74 billion fell short of expectations. Shares traded near $233.98, close to their 12-month high of $240.97.
• Insurance fundamentals were broadly positive, with a 92.3% combined ratio, 3.1% growth in net premiums written and a 12.7% increase in net investment income. However, catastrophe losses totaled $109.7 million, insiders sold shares recently, and analysts noted the stock’s strong prior rally could limit further upside.

The Hanover Insurance Group (NYSE:THG - Get Free Report) had its target price raised by Citizens Jmp from $240.00 to $250.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has a "market outperform" rating on the insurance provider's stock. Citizens Jmp's target price would suggest a potential upside of 6.85% from the stock's previous close.

Other equities analysts have also issued reports about the stock. Oppenheimer reissued an "outperform" rating and set a $260.00 price target on shares of The Hanover Insurance Group in a research report on Tuesday, October 13th. Royal Bank Of Canada upped their price target on shares of The Hanover Insurance Group from $215.00 to $235.00 and gave the stock a "sector perform" rating in a research report on Thursday, July 30th. Weiss Ratings raised shares of The Hanover Insurance Group from a "buy (a)" rating to a "buy (a+)" rating in a research note on Thursday, October 8th. Piper Sandler cut shares of The Hanover Insurance Group from an "overweight" rating to a "neutral" rating and set a $220.00 target price for the company. in a research report on Wednesday, July 15th. Finally, Citigroup restated a "market outperform" rating on shares of The Hanover Insurance Group in a research report on Thursday. Two analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, The Hanover Insurance Group presently has a consensus rating of "Moderate Buy" and an average price target of $232.86.

The Hanover Insurance Group Trading Up 0.3%

Shares of THG traded up $0.72 during mid-day trading on Thursday, reaching $233.98. 106,574 shares of the company's stock traded hands, compared to its average volume of 315,819. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.38 and a quick ratio of 0.38. The stock has a market cap of $8.15 billion, a P/E ratio of 11.16 and a beta of 0.23. The stock's 50-day moving average is $225.75 and its two-hundred day moving average is $199.40. The Hanover Insurance Group has a 12 month low of $166.54 and a 12 month high of $240.97.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The insurance provider reported $5.15 earnings per share for the quarter, beating the consensus estimate of $4.62 by $0.53. The Hanover Insurance Group had a return on equity of 21.72% and a net margin of 11.17%. The firm had revenue of $1.74 billion during the quarter, compared to the consensus estimate of $1.81 billion. During the same period in the previous year, the company posted $5.09 earnings per share. Research analysts forecast that The Hanover Insurance Group will post 20.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Dennis Kerrigan sold 2,104 shares of the company's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $222.41, for a total value of $467,950.64. Following the transaction, the executive vice president directly owned 12,003 shares in the company, valued at approximately $2,669,587.23. This represents a 14.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Jane Carlin sold 1,000 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $231.50, for a total value of $231,500.00. Following the completion of the transaction, the director owned 2,270 shares of the company's stock, valued at $525,505. The trade was a 30.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 9,655 shares of company stock valued at $2,145,846 in the last 90 days. Insiders own 2.80% of the company's stock.

Institutional Investors Weigh In On The Hanover Insurance Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Hsbc Holdings PLC raised its stake in shares of The Hanover Insurance Group by 96.6% in the fourth quarter. Hsbc Holdings PLC now owns 29,787 shares of the insurance provider's stock valued at $5,470,000 after acquiring an additional 14,633 shares in the last quarter. The Manufacturers Life Insurance Company purchased a new position in The Hanover Insurance Group in the second quarter worth approximately $5,393,000. Bank of America Corp DE acquired a new position in The Hanover Insurance Group during the 2nd quarter worth approximately $47,734,000. Assenagon Asset Management S.A. acquired a new position in The Hanover Insurance Group during the 2nd quarter worth approximately $7,374,000. Finally, Sei Investments Co. increased its position in shares of The Hanover Insurance Group by 28.8% in the 1st quarter. Sei Investments Co. now owns 93,736 shares of the insurance provider's stock valued at $16,249,000 after purchasing an additional 20,933 shares during the last quarter. Hedge funds and other institutional investors own 86.61% of the company's stock.

Key The Hanover Insurance Group News

Here are the key news stories impacting The Hanover Insurance Group this week:

• Positive Sentiment: Hanover reported third-quarter operating earnings of $5.15 per diluted share, above the roughly $4.59–$4.62 analyst consensus and slightly ahead of $5.09 a year earlier. The earnings beat is the primary catalyst supporting the stock. Hanover Insurance Group Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Underlying insurance performance was solid: the combined ratio was 92.3%, improving to 85.5% excluding catastrophe losses, while the current accident-year loss and LAE ratio excluding catastrophes improved 1.9 points year over year. Net premiums written rose 3.1%, supported by renewal price increases across Personal Lines, Core Commercial and Specialty. The Hanover Reports Third Quarter Results
• Positive Sentiment: Net investment income increased 12.7% year over year to $131.9 million, helping support profitability. Strong recent share-price momentum and the earnings surprise history are also attracting style-focused investors. Why Hanover Insurance Group Is a Strong Momentum Stock
• Neutral Sentiment: Management reported net income of $172.6 million, or $4.86 per share, compared with $178.7 million, or $4.90 per share, in the prior-year quarter. Return on equity remained healthy at 19.4% on a net basis and 18.7% operationally.
• Negative Sentiment: Revenue of approximately $1.74 billion fell short of the roughly $1.81 billion analyst estimate, limiting the upside from the earnings beat. Hanover Reports Sales Below Estimates
• Negative Sentiment: Catastrophe losses totaled $109.7 million, or 6.8 points of the combined ratio, and book value per share declined 5.4% from June 30. Analysts have also questioned whether THG’s roughly 115% recent rally leaves the shares stretched.

About The Hanover Insurance Group

The Hanover Insurance Group, Inc is a holding company that provides property and casualty insurance products and services through a network of independent agents. Its principal operating subsidiary is The Hanover Insurance Company, which traces its roots to 1852 and is headquartered in Worcester, Massachusetts.

The company offers personal insurance products such as automobile, homeowners, condominium, renters and umbrella coverage. Its commercial insurance business serves small and midsize businesses with products that include commercial property, general liability, commercial automobile, workers' compensation and other specialized coverages.

The Hanover also provides specialty insurance solutions for select industries and risks, including professional liability, management liability, marine and other niche commercial exposures.

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