Equities Analysts Set Expectations for THG FY2026 Earnings

Key Points

• DOWLING & PARTN set FY2026 EPS for The Hanover Insurance Group at $18.00, slightly below the current consensus estimate of $18.45. It also forecast FY2027 EPS of $17.50.
• The company reported a strong quarterly beat on April 29, posting $5.25 EPS versus expectations of $4.14 and revenue of $1.70 billion versus $1.58 billion expected. Revenue rose 6.1% year over year, and the firm posted a 21.55% return on equity.
• Analysts remain mostly positive on THG, with a Moderate Buy consensus and an average target price of $207. The board also authorized a $700 million stock buyback, while several insiders recently sold shares.

The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) - DOWLING & PARTN issued their FY2026 EPS estimates for The Hanover Insurance Group in a research report issued on Wednesday, May 20th. DOWLING & PARTN analyst A. Mottolese anticipates that the insurance provider will post earnings of $18.00 per share for the year. The consensus estimate for The Hanover Insurance Group's current full-year earnings is $18.45 per share. DOWLING & PARTN also issued estimates for The Hanover Insurance Group's FY2027 earnings at $17.50 EPS.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.14 by $1.11. The firm had revenue of $1.70 billion during the quarter, compared to analysts' expectations of $1.58 billion. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%. The business's revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.87 earnings per share.

A number of other brokerages have also recently issued reports on THG. Zacks Research upgraded shares of The Hanover Insurance Group from a "hold" rating to a "strong-buy" rating in a report on Monday, May 4th. BMO Capital Markets cut shares of The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and upped their price target for the company from $194.00 to $203.00 in a report on Tuesday, May 19th. Citizens Jmp upped their price target on shares of The Hanover Insurance Group from $200.00 to $205.00 and gave the company a "market outperform" rating in a report on Thursday, April 30th. Weiss Ratings upgraded shares of The Hanover Insurance Group from a "buy (b+)" rating to a "buy (a-)" rating in a report on Friday, May 22nd. Finally, Piper Sandler upped their price target on shares of The Hanover Insurance Group from $212.00 to $220.00 and gave the company an "overweight" rating in a report on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, The Hanover Insurance Group has a consensus rating of "Moderate Buy" and a consensus target price of $207.00.

The Hanover Insurance Group Stock Down 2.3%

Shares of NYSE THG opened at $191.45 on Thursday. The stock has a market cap of $6.70 billion, a P/E ratio of 9.64 and a beta of 0.31. The firm has a 50 day moving average price of $181.54 and a 200 day moving average price of $179.29. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.37 and a current ratio of 0.37. The Hanover Insurance Group has a 52-week low of $160.70 and a 52-week high of $199.59.

The Hanover Insurance Group announced that its board has initiated a stock buyback program on Wednesday, May 13th that permits the company to buyback $700.00 million in outstanding shares. This buyback authorization permits the insurance provider to repurchase up to 10.6% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other news, EVP Dennis Francis Kerrigan sold 6,262 shares of the business's 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 owned 11,988 shares of the company's stock, valued at $2,313,564.12. The trade was a 34.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO John C. Roche sold 8,358 shares of the business's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $193.74, for a total transaction of $1,619,278.92. Following the completion of the sale, the chief executive officer directly owned 141,011 shares in the company, valued at approximately $27,319,471.14. This represents a 5.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 30,708 shares of company stock valued at $5,921,743 over the last 90 days. 2.80% of the stock is currently owned by company insiders.

Institutional Trading of The Hanover Insurance Group

A number of institutional investors have recently made changes to their positions in THG. Norges Bank bought a new stake in shares of The Hanover Insurance Group in the fourth quarter worth $83,817,000. Alliancebernstein L.P. raised its position in The Hanover Insurance Group by 36.1% during the second quarter. Alliancebernstein L.P. now owns 1,280,418 shares of the insurance provider's stock worth $217,505,000 after acquiring an additional 339,896 shares in the last quarter. AQR Capital Management LLC raised its position in The Hanover Insurance Group by 37.8% during the third quarter. AQR Capital Management LLC now owns 763,431 shares of the insurance provider's stock worth $137,967,000 after acquiring an additional 209,616 shares in the last quarter. Invesco Ltd. raised its position in The Hanover Insurance Group by 44.1% during the fourth quarter. Invesco Ltd. now owns 646,910 shares of the insurance provider's stock worth $118,236,000 after acquiring an additional 197,930 shares in the last quarter. Finally, Balyasny Asset Management L.P. raised its position in The Hanover Insurance Group by 206.0% during the third quarter. Balyasny Asset Management L.P. now owns 292,121 shares of the insurance provider's stock worth $53,058,000 after acquiring an additional 196,655 shares in the last quarter. 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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