Arrowstreet Capital Limited Partnership Makes New Investment in The Hanover Insurance Group, Inc. $THG

Key Points

• Arrowstreet Capital initiated a position in The Hanover Insurance Group, purchasing 21,138 shares worth approximately $3.66 million. Institutional investors collectively own 86.61% of the company.
• Hanover reported quarterly EPS of $5.31, exceeding estimates of $3.84, while revenue rose 4.6% year over year to $1.73 billion. The company also maintains a $0.95 quarterly dividend and an approved $700 million share-repurchase program.
• Analyst sentiment remains positive but measured, with the stock carrying a “Moderate Buy” consensus rating and a $223.29 average price target. Meanwhile, insiders sold more than 26,000 shares worth approximately $5.06 million over the past 90 days.

Arrowstreet Capital Limited Partnership bought a new stake in The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 21,138 shares of the insurance provider's stock, valued at approximately $3,664,000. Arrowstreet Capital Limited Partnership owned 0.06% of The Hanover Insurance Group as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors also recently made changes to their positions in the stock. JPL Wealth Management LLC acquired a new position in shares of The Hanover Insurance Group during the 3rd quarter worth $26,000. McMillan Office Inc. acquired a new stake in shares of The Hanover Insurance Group during the 4th quarter valued at approximately $31,000. Entrust Financial LLC purchased a new stake in shares of The Hanover Insurance Group during the 4th quarter worth approximately $33,000. Root Financial Partners LLC boosted 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 acquiring an additional 97 shares in the last quarter. Finally, IFP Advisors Inc grew its holdings in shares of The Hanover Insurance Group by 146.2% in the 4th quarter. IFP Advisors Inc now owns 256 shares of the insurance provider's stock worth $47,000 after acquiring an additional 152 shares during the period. 86.61% of the stock is currently owned by hedge funds and other institutional investors.

The Hanover Insurance Group Trading Down 0.2%

Shares of THG stock opened at $232.18 on Tuesday. The company has a market capitalization of $8.08 billion, a price-to-earnings ratio of 11.08 and a beta of 0.28. 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 firm has a 50-day moving average price of $207.60 and a 200 day moving average price of $188.24. The Hanover Insurance Group, Inc. has a twelve month low of $165.50 and a twelve month high of $236.07.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The insurance provider reported $5.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.84 by $1.47. The company had revenue of $1.73 billion for the quarter, compared to analysts' expectations of $1.65 billion. The Hanover Insurance Group had a net margin of 11.17% and a return on equity of 21.72%. The firm's revenue for the quarter was up 4.6% compared to the same quarter last year. During the same period last year, the company earned $4.35 EPS. Research analysts forecast that The Hanover Insurance Group, Inc. will post 19.15 earnings per share for the current fiscal year.

The Hanover Insurance Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, June 12th were paid a dividend of $0.95 per share. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend was Friday, June 12th. The Hanover Insurance Group's dividend payout ratio is currently 18.14%.

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

Analyst Ratings Changes

A number of analysts have commented on the company. Citigroup reiterated an "outperform" rating on shares of The Hanover Insurance Group in a research report on Friday, July 10th. BMO Capital Markets cut The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and raised their price target for the company from $194.00 to $203.00 in a research report on Tuesday, May 19th. Morgan Stanley boosted their price objective on shares of The Hanover Insurance Group from $220.00 to $225.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 8th. Royal Bank Of Canada increased their price objective on shares of The Hanover Insurance Group from $215.00 to $235.00 and gave the company a "sector perform" rating in a research note on Thursday. Finally, Piper Sandler downgraded shares of The Hanover Insurance Group from an "overweight" rating to a "neutral" rating and set a $220.00 target price for the company. in a report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $223.29.

Insiders Place Their Bets

In other The Hanover Insurance Group news, EVP Denise Lowsley sold 4,175 shares of The Hanover Insurance Group stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $191.73, for a total value of $800,472.75. Following the completion of the sale, the executive vice president owned 3,883 shares in the company, valued at $744,487.59. The trade was a 51.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Francisco Aristeguieta sold 1,000 shares of the company's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $195.37, for a total transaction of $195,370.00. Following the transaction, the director directly owned 4,053 shares of the company's stock, valued at approximately $791,834.61. This represents a 19.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 26,108 shares of company stock worth $5,063,751 over the last ninety days. Company insiders own 2.80% 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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