The Hanover Insurance Group, Inc. (NYSE:THG) Stock Has Average Target Price of $231.43 According to Analysts

Key Points

• Analyst sentiment is moderately bullish: Ten brokerages give The Hanover Insurance Group a consensus “Moderate Buy” rating, with an average 12-month price target of $231.43 versus the stock’s reported $225.95 price.
• The company exceeded quarterly expectations: Hanover reported adjusted earnings of $5.31 per share, beating estimates of $3.84, while revenue rose 4.6% year over year to $1.73 billion.
• Shareholders received a $0.95 quarterly dividend: The annualized payout is $3.80 per share, representing a 1.7% yield and an 18.14% payout ratio; meanwhile, insiders sold 9,655 shares worth about $2.15 million over the past 90 days.

The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) has been given an average recommendation of "Moderate Buy" by the ten brokerages that are presently covering the stock, MarketBeat reports. Five research 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 1 year target price among brokers that have covered the stock in the last year is $231.43.

A number of research firms recently commented on THG. Citizens Jmp lifted their price target on The Hanover Insurance Group from $225.00 to $240.00 and gave the stock a "market outperform" rating in a report on Wednesday, July 29th. Oppenheimer restated an "outperform" rating and issued a $260.00 price objective on shares of The Hanover Insurance Group in a research note on Tuesday. Citigroup reaffirmed an "outperform" rating on shares of The Hanover Insurance Group in a research report on Friday, July 10th. Zacks Research raised The Hanover Insurance Group from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 5th. Finally, Morgan Stanley reduced their target price on The Hanover Insurance Group from $240.00 to $230.00 and set an "equal weight" rating for the company in a research note on Tuesday, October 6th.

The Hanover Insurance Group Stock Up 1.6%

The Hanover Insurance Group stock opened at $225.95 on Thursday. The firm has a market capitalization of $7.87 billion, a PE ratio of 10.79 and a beta of 0.23. The company's 50-day moving average is $223.95 and its 200-day moving average is $206.72. The Hanover Insurance Group has a fifty-two week low of $166.54 and a fifty-two week high of $236.07. 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 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, beating analysts' consensus estimates of $3.84 by $1.47. The Hanover Insurance Group had a net margin of 11.17% and a return on equity of 21.72%. The company had revenue of $1.73 billion for the quarter, compared to analysts' expectations of $1.65 billion. During the same period in the prior year, the firm earned $4.35 EPS. The Hanover Insurance Group's quarterly revenue was up 4.6% compared to the same quarter last year. Sell-side analysts anticipate that The Hanover Insurance Group will post 20.25 earnings per share for the current year.

The Hanover Insurance Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 11th were paid a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date was Friday, September 11th. The Hanover Insurance Group's dividend payout ratio is 18.14%.

Insiders Place Their Bets

In other The Hanover Insurance Group news, EVP Dennis Kerrigan sold 2,104 shares of the firm's stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $222.41, for a total transaction of $467,950.64. Following the completion of the sale, the executive vice president owned 12,003 shares of the company's stock, valued at $2,669,587.23. This trade represents a 14.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Jane D. Carlin sold 1,000 shares of the firm's stock in a transaction on Monday, August 3rd. The shares were 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 of the company's stock, valued at $525,505. This represents a 30.58% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 9,655 shares of company stock worth $2,145,846. 2.80% of the stock is owned by company insiders.

Institutional Trading of The Hanover Insurance Group

Hedge funds have recently modified their holdings of the stock. Mather Group LLC. bought a new stake in shares of The Hanover Insurance Group during the 3rd quarter valued at $29,000. Krilogy Financial LLC grew its holdings in shares of The Hanover Insurance Group by 23.0% during the 3rd quarter. Krilogy Financial LLC now owns 2,155 shares of the insurance provider's stock worth $478,000 after purchasing an additional 403 shares in the last quarter. NorthCrest Asset Manangement LLC increased its position in shares of The Hanover Insurance Group by 58.0% in the third quarter. NorthCrest Asset Manangement LLC now owns 2,742 shares of the insurance provider's stock worth $609,000 after purchasing an additional 1,007 shares during the period. Wedmont Private Capital increased its position in shares of The Hanover Insurance Group by 26.3% in the third quarter. Wedmont Private Capital now owns 1,470 shares of the insurance provider's stock worth $326,000 after purchasing an additional 306 shares during the period. Finally, Intelligence Driven Advisers LLC bought a new position in shares of The Hanover Insurance Group in the third quarter worth $212,000. 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 holding company headquartered in Worcester, Massachusetts. Founded in 1852, the company operates through a network of independent agents and provides insurance products and services primarily in the United States.

The company's business is organized around personal, commercial and specialty insurance. Its personal lines include automobile, homeowners, condominium, renters and umbrella coverage. Commercial offerings include property, liability, workers' compensation, commercial automobile and package policies for small and middle-market businesses, while specialty products serve selected industries and professional risks.

The Hanover also provides risk-management resources, claims services and related support to policyholders and agents.

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