Dennis Francis Kerrigan Sells 6,262 Shares of The Hanover Insurance Group (NYSE:THG) Stock

Key Points

• Insider sale: EVP Dennis Francis Kerrigan sold 6,262 shares of The Hanover Insurance Group at an average price of $192.99, reducing his direct stake by 34.31%.
• Strong quarterly results: The company reported EPS of $5.25 and revenue of $1.70 billion, both ahead of analyst expectations, while revenue rose 6.1% year over year.
• Capital return and analyst sentiment: Hanover authorized a $700 million share buyback and maintains a quarterly dividend of $0.95 per share; analysts currently view the stock as a Moderate Buy with an average target price of $205.86.

The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) EVP Dennis Francis Kerrigan sold 6,262 shares of The Hanover Insurance Group stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $192.99, for a total value of $1,208,503.38. Following the sale, the executive vice president directly owned 11,988 shares of the company's stock, valued at $2,313,564.12. This represents a 34.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link.

The Hanover Insurance Group Price Performance

NYSE:THG traded up $1.09 during trading hours on Thursday, hitting $195.65. 279,165 shares of the company's stock traded hands, compared to its average volume of 328,286. The firm has a market cap of $6.85 billion, a P/E ratio of 9.85 and a beta of 0.31. The Hanover Insurance Group, Inc. has a 52 week low of $160.70 and a 52 week high of $199.59. The business's fifty day simple moving average is $179.45 and its two-hundred day simple moving average is $178.55. The company has a quick ratio of 0.37, a current ratio of 0.37 and a debt-to-equity ratio of 0.22.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.14 by $1.11. The company had revenue of $1.70 billion during the quarter, compared to analyst estimates of $1.58 billion. The Hanover Insurance Group had a return on equity of 21.55% and a net margin of 10.77%.The firm's quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter last year, the company earned $3.87 earnings per share. On average, research analysts anticipate that The Hanover Insurance Group, Inc. will post 18.45 earnings per share for the current fiscal year.

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

The Hanover Insurance Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Friday, March 13th were given a dividend of $0.95 per share. The ex-dividend date was Friday, March 13th. This represents a $3.80 dividend on an annualized basis and a yield of 1.9%. The Hanover Insurance Group's dividend payout ratio (DPR) is presently 19.12%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on THG. Wall Street Zen downgraded The Hanover Insurance Group from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Weiss Ratings upgraded The Hanover Insurance Group from a "buy (b)" rating to a "buy (b+)" rating in a research report on Friday, May 8th. Oppenheimer raised their price target on The Hanover Insurance Group from $205.00 to $220.00 and gave the company an "outperform" rating in a research report on Thursday. Royal Bank Of Canada raised their price target on The Hanover Insurance Group from $190.00 to $195.00 and gave the company a "sector perform" rating in a research report on Friday, May 1st. Finally, Citigroup restated an "outperform" rating on shares of The Hanover Insurance Group in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $205.86.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of THG. JPL Wealth Management LLC purchased a new position in shares of The Hanover Insurance Group in the third quarter worth about $26,000. Community Bank N.A. purchased a new position in shares of The Hanover Insurance Group in the third quarter worth about $27,000. McMillan Office Inc. purchased a new position in shares of The Hanover Insurance Group in the fourth quarter worth about $31,000. Entrust Financial LLC purchased a new position in shares of The Hanover Insurance Group in the fourth quarter worth about $33,000. Finally, Clearstead Advisors LLC increased its holdings 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 worth $36,000 after buying an additional 150 shares during the period. Hedge funds and other institutional investors 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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