The Hanover Insurance Group (NYSE:THG) Releases Quarterly Earnings Results, Beats Expectations By $0.53 EPS

Key Points

• The Hanover Insurance Group exceeded earnings expectations, reporting quarterly EPS of $5.15 versus the $4.62 consensus estimate. Revenue of $1.74 billion, however, fell short of the $1.81 billion forecast.
• THG shares declined $2.78 to $233.06 following the results, despite strong profitability metrics, including a 21.72% return on equity and an 11.17% net margin.
• The company paid a quarterly dividend of $0.95 per share, equivalent to an annualized $3.80 payout and a 1.6% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $231.43, while insiders sold roughly $2.15 million of stock over the past three months.

The Hanover Insurance Group (NYSE:THG - Get Free Report) issued its quarterly earnings data on Wednesday. The insurance provider reported $5.15 EPS for the quarter, topping the consensus estimate of $4.62 by $0.53, Zacks reports. The firm had revenue of $1.74 billion during the quarter, compared to the consensus estimate of $1.81 billion. The Hanover Insurance Group had a return on equity of 21.72% and a net margin of 11.17%.

The Hanover Insurance Group Stock Performance

Shares of THG traded down $2.78 on Wednesday, reaching $233.06. 243,578 shares of the company's stock traded hands, compared to its average volume of 316,941. 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 stock has a market cap of $8.12 billion, a PE ratio of 11.12 and a beta of 0.23. The stock's 50 day simple moving average is $225.53 and its two-hundred day simple moving average is $199.11. The Hanover Insurance Group has a 52-week low of $166.54 and a 52-week high of $240.97.

The Hanover Insurance Group Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 11th were issued a $0.95 dividend. The ex-dividend date of this dividend was Friday, September 11th. This represents a $3.80 annualized dividend and a dividend yield of 1.6%. The Hanover Insurance Group's dividend payout ratio is currently 18.14%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on THG. Oppenheimer reiterated an "outperform" rating and set a $260.00 price target on shares of The Hanover Insurance Group in a report on Tuesday, October 13th. Piper Sandler downgraded shares of The Hanover Insurance Group from an "overweight" rating to a "neutral" rating and set a $220.00 price objective on the stock. in a report on Wednesday, July 15th. Royal Bank Of Canada lifted their price objective on shares of The Hanover Insurance Group from $215.00 to $235.00 and gave the stock a "sector perform" rating in a report on Thursday, July 30th. Citizens Jmp upped their target price on shares of The Hanover Insurance Group from $225.00 to $240.00 and gave the stock a "market outperform" rating in a research note on Wednesday, July 29th. Finally, Morgan Stanley lowered their target price on shares of The Hanover Insurance Group from $240.00 to $230.00 and set an "equal weight" rating for the company in a report on Tuesday, October 6th. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $231.43.

Insider Buying and Selling at The Hanover Insurance Group

In other news, EVP Dennis Kerrigan sold 6,551 shares of The Hanover Insurance Group stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $220.79, for a total transaction of $1,446,395.29. Following the sale, the executive vice president directly owned 12,003 shares in the company, valued at $2,650,142.37. The trade was a 35.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Jane Carlin sold 1,000 shares of The Hanover Insurance Group stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $231.50, for a total transaction of $231,500.00. Following the completion of the sale, the director directly owned 2,270 shares in the company, valued at approximately $525,505. This represents a 30.58% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 9,655 shares of company stock worth $2,145,846. Insiders own 2.80% 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.

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.