The Hanover Insurance Group, Inc. (NYSE:THG) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is moderately positive: Ten analysts give The Hanover Insurance Group a consensus “Moderate Buy” rating, with an average 12-month price target of $225.71.
• Quarterly results exceeded expectations: The company reported adjusted EPS of $5.31 versus the $3.84 consensus estimate, while revenue rose 4.6% year over year to $1.73 billion.
• Shareholder returns remain a focus: Hanover pays a $0.95 quarterly dividend and authorized a $700 million share-repurchase program covering up to 10.6% of outstanding shares, although insiders sold 9,655 shares worth about $2.15 million over the past three months.

Shares of The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the ten ratings firms that are covering the company, Marketbeat Ratings reports. Five investment analysts have rated the stock with a hold recommendation, three have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $225.7143.

A number of research analysts have recently weighed in on THG shares. Morgan Stanley increased their price objective on The Hanover Insurance Group from $235.00 to $240.00 and gave the company an "equal weight" rating in a report on Wednesday, August 19th. BMO Capital Markets downgraded The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and lifted their target price for the stock from $194.00 to $203.00 in a report on Tuesday, May 19th. Zacks Research upgraded The Hanover Insurance Group from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 5th. Oppenheimer increased their price target on shares of The Hanover Insurance Group from $205.00 to $220.00 and gave the stock an "outperform" rating in a report on Thursday, May 21st. Finally, Piper Sandler lowered shares of The Hanover Insurance Group from an "overweight" rating to a "neutral" rating and set a $220.00 price target for the company. in a research report on Wednesday, July 15th.

Insider Buying and Selling at The Hanover Insurance Group

In other The Hanover Insurance Group news, EVP Dennis Francis Kerrigan sold 6,551 shares of the company's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $220.79, for a total value of $1,446,395.29. Following the sale, the executive vice president directly owned 12,003 shares of the company's stock, valued at approximately $2,650,142.37. This represents a 35.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jane D. Carlin sold 1,000 shares of the stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $231.50, for a total value of $231,500.00. Following the sale, the director directly owned 2,270 shares in the company, valued at $525,505. This represents 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 valued at $2,145,846. 2.80% of the stock is currently owned by corporate insiders.

Institutional Trading of The Hanover Insurance Group

A number of hedge funds have recently modified their holdings of the stock. JPL Wealth Management LLC purchased a new position in The Hanover Insurance Group during the third quarter valued at approximately $26,000. McMillan Office Inc. purchased a new stake in The Hanover Insurance Group in the 4th quarter worth approximately $31,000. Entrust Financial LLC purchased a new stake in The Hanover Insurance Group in the 4th quarter worth approximately $33,000. Clearstead Trust LLC acquired a new stake in shares of The Hanover Insurance Group during the 2nd quarter worth approximately $36,000. Finally, Root Financial Partners LLC grew its stake in shares of The Hanover Insurance Group by 69.3% during the 1st quarter. Root Financial Partners LLC now owns 237 shares of the insurance provider's stock worth $41,000 after purchasing an additional 97 shares during the period. Hedge funds and other institutional investors own 86.61% of the company's stock.

The Hanover Insurance Group Price Performance

Shares of THG opened at $227.22 on Wednesday. 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 company's fifty day moving average price is $218.14 and its 200-day moving average price is $194.24. The Hanover Insurance Group has a 1-year low of $166.54 and a 1-year high of $236.07. The firm has a market capitalization of $7.91 billion, a PE ratio of 10.85 and a beta of 0.27.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last issued its earnings results on Tuesday, July 28th. The insurance provider reported $5.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.84 by $1.47. The Hanover Insurance Group had a return on equity of 21.72% and a net margin of 11.17%.The company had revenue of $1.73 billion during the quarter, compared to analyst estimates of $1.65 billion. During the same quarter last year, the business posted $4.35 EPS. The firm's quarterly revenue was up 4.6% on a year-over-year basis. On average, equities research analysts predict that The Hanover Insurance Group will post 20.17 EPS for the current year.

The Hanover Insurance Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were issued a $0.95 dividend. This represents a $3.80 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Friday, June 12th. The Hanover Insurance Group's dividend payout ratio is 18.14%.

The Hanover Insurance Group announced that its board has authorized a share buyback program on Wednesday, May 13th that allows the company to repurchase $700.00 million in outstanding shares. This repurchase authorization allows the insurance provider to reacquire up to 10.6% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its shares are undervalued.

The Hanover Insurance Group Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source