The Hanover Insurance Group (NYSE:THG) Stock Gets Price Target Increase from Morgan Stanley

Key Points

• Morgan Stanley raised its price target for The Hanover Insurance Group from $230 to $235 while maintaining an “equal weight” rating, implying approximately 2.7% downside from the stock’s reported $241.53 price.
• Analyst sentiment remains generally positive, with MarketBeat reporting a consensus “Moderate Buy” rating and a $235 consensus price target. Recent recommendations range from Piper Sandler’s “neutral” view to Oppenheimer’s “outperform” rating with a $260 target.
• The Hanover exceeded quarterly EPS expectations, reporting $5.15 versus the $4.62 consensus estimate, although revenue of $1.74 billion fell short of the $1.81 billion forecast. Shares reached a reported 12-month high of $241.85, while insiders sold roughly $2.15 million of stock over the past three months.

The Hanover Insurance Group (NYSE:THG - Get Free Report) had its price target raised by stock analysts at Morgan Stanley from $230.00 to $235.00 in a research report issued on Friday, Benzinga reports. The firm presently has an "equal weight" rating on the insurance provider's stock. Morgan Stanley's price target points to a potential downside of 2.70% from the stock's current price.

Several other research firms have also recently issued reports on THG. Zacks Research upgraded The Hanover Insurance Group from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 5th. Keefe, Bruyette & Woods raised their target price on The Hanover Insurance Group from $222.00 to $232.00 and gave the company a "market perform" rating in a research report on Friday, September 18th. Oppenheimer reaffirmed an "outperform" rating and issued a $260.00 price target on shares of The Hanover Insurance Group in a research note on Tuesday, October 13th. Weiss Ratings upgraded The Hanover Insurance Group from a "buy (a)" rating to a "buy (a+)" rating in a research report on Thursday, October 8th. Finally, Piper Sandler downgraded The Hanover Insurance Group from an "overweight" rating to a "neutral" rating and set a $220.00 price objective for the company. in a research note on Wednesday, July 15th. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, The Hanover Insurance Group has a consensus rating of "Moderate Buy" and a consensus price target of $235.00.

The Hanover Insurance Group Price Performance

Shares of The Hanover Insurance Group stock traded up $6.41 during trading hours on Friday, reaching $241.53. The stock had a trading volume of 112,976 shares, compared to its average volume of 316,140. The Hanover Insurance Group has a twelve month low of $166.54 and a twelve month high of $241.85. The company has a current ratio of 0.38, a quick ratio of 0.38 and a debt-to-equity ratio of 0.22. The firm has a market capitalization of $8.41 billion, a PE ratio of 11.55 and a beta of 0.23. The stock's 50 day moving average is $226.06 and its 200 day moving average is $199.71.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The insurance provider reported $5.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.62 by $0.53. The Hanover Insurance Group had a return on equity of 21.39% and a net margin of 10.97%. The company had revenue of $1.74 billion for the quarter, compared to the consensus estimate of $1.81 billion. During the same quarter in the prior year, the business posted $5.09 earnings per share. Equities analysts expect that The Hanover Insurance Group will post 20.35 earnings per share for the current fiscal year.

Insider Activity

In other The Hanover Insurance Group news, EVP Dennis Kerrigan sold 6,551 shares of The Hanover Insurance Group stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $220.79, for a total transaction of $1,446,395.29. Following the transaction, the executive vice president directly owned 12,003 shares of the company's stock, valued at $2,650,142.37. The trade was a 35.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jane Carlin sold 1,000 shares of the business's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $231.50, for a total transaction of $231,500.00. Following the completion of the transaction, the director owned 2,270 shares in the company, valued at $525,505. The trade was a 30.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 9,655 shares of company stock worth $2,145,846. Corporate insiders own 2.80% of the company's stock.

Institutional Trading of The Hanover Insurance Group

Several institutional investors have recently made changes to their positions in THG. BlackRock Inc. acquired a new position in shares of The Hanover Insurance Group in the second quarter worth $756,471,000. Bank of New York Mellon Corp acquired a new stake in shares of The Hanover Insurance Group in the second quarter valued at $69,481,000. Bank of America Corp DE acquired a new stake in shares of The Hanover Insurance Group in the second quarter valued at $47,734,000. Primecap Management Co. CA purchased a new position in The Hanover Insurance Group in the second quarter valued at $37,844,000. Finally, William Blair Investment Management LLC purchased a new position in The Hanover Insurance Group in the second quarter valued at $33,034,000. Hedge funds and other institutional investors own 86.61% of the company's stock.

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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