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

Key Points

• Citizens Jmp raised its target price for The Hanover to $205 (from $200) and maintained a "market outperform" rating, implying roughly a 9.18% upside from the current share price.
• The Hanover reported a strong quarter, beating expectations with $5.25 EPS vs. $4.22 expected and $1.70B in revenue vs. $1.58B expected, helping push the stock to about $187.76 intraday; net margin was 10.05% and ROE 21%.
• Analysts are mixed but generally positive — the consensus is a Moderate Buy with an average target of $198.25 — while insiders have sold shares and institutional investors hold roughly 86.6% of the stock.

The Hanover Insurance Group (NYSE:THG - Get Free Report) had its target price raised by stock analysts at Citizens Jmp from $200.00 to $205.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has a "market outperform" rating on the insurance provider's stock. Citizens Jmp's target price suggests a potential upside of 9.18% from the stock's current price.

Other analysts have also recently issued reports about the stock. Wall Street Zen cut shares of The Hanover Insurance Group from a "buy" rating to a "hold" rating in a report on Saturday, February 28th. Citigroup reiterated an "outperform" rating on shares of The Hanover Insurance Group in a research report on Thursday. Weiss Ratings reiterated a "buy (b)" rating on shares of The Hanover Insurance Group in a research report on Monday, April 20th. Morgan Stanley lowered their price objective on The Hanover Insurance Group from $194.00 to $190.00 and set an "equal weight" rating on the stock in a research report on Monday, April 6th. Finally, Keefe, Bruyette & Woods upped their price objective on The Hanover Insurance Group from $207.00 to $208.00 and gave the stock an "outperform" rating in a research report on Wednesday, February 25th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $198.25.

The Hanover Insurance Group Price Performance

The Hanover Insurance Group stock traded up $10.25 during mid-day trading on Thursday, hitting $187.76. 125,318 shares of the company traded hands, compared to its average volume of 329,676. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.44 and a current ratio of 0.44. The Hanover Insurance Group has a one year low of $160.70 and a one year high of $191.66. The stock has a fifty day moving average price of $176.07 and a 200-day moving average price of $176.90. The stock has a market cap of $6.61 billion, a price-to-earnings ratio of 10.32 and a beta of 0.29.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last issued its earnings results on Wednesday, April 29th. The insurance provider reported $5.25 EPS for the quarter, topping the consensus estimate of $4.22 by $1.03. The Hanover Insurance Group had a net margin of 10.05% and a return on equity of 21.00%. The company had revenue of $1.70 billion for the quarter, compared to the consensus estimate of $1.58 billion. During the same period in the previous year, the firm earned $3.87 earnings per share. The firm's revenue for the quarter was up 6.1% on a year-over-year basis. On average, equities analysts predict that The Hanover Insurance Group will post 16.92 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Jane D. Carlin sold 1,200 shares of the company's stock in a transaction on Friday, February 27th. The stock was sold at an average price of $180.91, for a total transaction of $217,092.00. Following the transaction, the director owned 2,423 shares of the company's stock, valued at $438,344.93. This represents a 33.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Richard W. Lavey sold 24,420 shares of the company's stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $178.92, for a total value of $4,369,226.40. Following the transaction, the executive vice president directly owned 32,174 shares in the company, valued at $5,756,572.08. This represents a 43.15% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 2.80% of the company's stock.

Institutional Trading of The Hanover Insurance Group

Large investors have recently bought and sold shares of the company. JPL Wealth Management LLC acquired a new stake in The Hanover Insurance Group in the third quarter valued at $26,000. Community Bank N.A. acquired a new stake in The Hanover Insurance Group in the third quarter valued at $27,000. McMillan Office Inc. acquired a new stake in The Hanover Insurance Group in the fourth quarter valued at $31,000. Entrust Financial LLC acquired a new stake in The Hanover Insurance Group in the fourth quarter valued at $33,000. Finally, Clearstead Advisors LLC lifted its position in shares of The Hanover Insurance Group by 300.0% in the third quarter. Clearstead Advisors LLC now owns 200 shares of the insurance provider's stock valued at $36,000 after acquiring an additional 150 shares in the last quarter. Institutional investors and hedge funds own 86.61% of the company's stock.

About The Hanover Insurance Group

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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