Bank of America Corp DE Purchases 22,978 Shares of The Hanover Insurance Group, Inc. $THG

Key Points

• Bank of America increased its Hanover Insurance Group stake by 10.1%, acquiring 22,978 shares to own 251,130 shares valued at approximately $43.5 million. Institutional investors collectively hold 86.61% of THG.
• Hanover reported quarterly EPS of $5.31, beating estimates of $3.84, while revenue rose 4.6% year over year to $1.73 billion. The company also authorized a $700 million share-repurchase program and maintains a $0.95 quarterly dividend.
• Analyst sentiment is moderately positive, with an average rating of “Moderate Buy” and a consensus price target of $223.57; THG recently traded at $222.70.

Bank of America Corp DE raised its position in The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) by 10.1% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 251,130 shares of the insurance provider's stock after acquiring an additional 22,978 shares during the period. Bank of America Corp DE owned about 0.72% of The Hanover Insurance Group worth $43,533,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of the company. Alliancebernstein L.P. increased its position in shares of 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 valued at $217,505,000 after purchasing an additional 339,896 shares during the period. Dimensional Fund Advisors LP lifted its position in The Hanover Insurance Group by 16.4% in the first quarter. Dimensional Fund Advisors LP now owns 970,177 shares of the insurance provider's stock worth $168,179,000 after purchasing an additional 136,998 shares during the period. AQR Capital Management LLC boosted its stake in The Hanover Insurance Group by 24.9% during the fourth quarter. AQR Capital Management LLC now owns 953,781 shares of the insurance provider's stock worth $174,322,000 after buying an additional 190,350 shares in the last quarter. First Trust Advisors LP boosted its stake in The Hanover Insurance Group by 3.2% during the first quarter. First Trust Advisors LP now owns 827,320 shares of the insurance provider's stock worth $143,416,000 after buying an additional 25,945 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in The Hanover Insurance Group by 4.3% in the 4th quarter. Geode Capital Management LLC now owns 727,958 shares of the insurance provider's stock valued at $133,073,000 after buying an additional 29,870 shares during the period. Institutional investors own 86.61% of the company's stock.

The Hanover Insurance Group Stock Performance

The Hanover Insurance Group stock opened at $222.70 on Thursday. The firm has a market capitalization of $7.75 billion, a P/E ratio of 10.63 and a beta of 0.27. The stock has a fifty day moving average price of $212.94 and a two-hundred day moving average price of $191.01. The Hanover Insurance Group, Inc. has a 52-week low of $165.50 and a 52-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 EPS for the quarter, beating the consensus estimate 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 the consensus estimate of $1.65 billion. During the same quarter in the previous year, the company earned $4.35 EPS. The firm's revenue for the quarter was up 4.6% compared to the same quarter last year. As a group, analysts anticipate that The Hanover Insurance Group, Inc. will post 20.15 EPS for the current fiscal year.

The Hanover Insurance Group declared that its Board of Directors has initiated a stock buyback plan on Wednesday, May 13th that allows the company to repurchase $700.00 million in shares. This repurchase authorization allows the insurance provider to buy up to 10.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

The Hanover Insurance Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, June 12th were issued a dividend of $0.95 per share. This represents a $3.80 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend was Friday, June 12th. The Hanover Insurance Group's dividend payout ratio (DPR) is currently 18.14%.

Insider Activity

In other The Hanover Insurance Group news, 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 sale, 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO John C. Roche sold 8,358 shares of the firm's stock in a transaction that occurred 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 sale, the chief executive officer directly owned 141,011 shares of the company's stock, valued at approximately $27,319,471.14. The trade was a 5.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 21,871 shares of company stock valued at $4,294,665 in the last ninety days. 2.80% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on THG. Oppenheimer increased their price objective on shares of The Hanover Insurance Group from $205.00 to $220.00 and gave the company an "outperform" rating in a research note on Thursday, May 21st. Zacks Research upgraded shares of The Hanover Insurance Group from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 5th. Weiss Ratings raised shares of The Hanover Insurance Group from a "buy (a-)" rating to a "buy (a)" rating in a research note on Thursday, July 30th. BMO Capital Markets cut shares of The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and raised their price target for the stock from $194.00 to $203.00 in a research note on Tuesday, May 19th. Finally, Citigroup reaffirmed an "outperform" rating on shares of The Hanover Insurance Group in a report on Friday, July 10th. Two investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $223.57.

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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