Bank of New York Mellon Corp Invests $69.48 Million in The Hanover Insurance Group, Inc. $THG

Key Points

• Bank of New York Mellon acquired 324,496 shares of The Hanover Insurance Group valued at approximately $69.48 million, giving it a 0.93% stake. Institutional investors collectively own 86.61% of THG.
• Analyst sentiment remains positive but mixed, with a consensus rating of “Moderate Buy” and an average price target of $225.71. THG recently beat quarterly earnings estimates, reporting $5.31 EPS versus the $3.84 consensus and $1.73 billion in revenue.
• The company pays a quarterly dividend of $0.95 per share, equivalent to a 1.7% yield, and authorized a $700 million share-repurchase program covering up to 10.6% of outstanding shares.

Bank of New York Mellon Corp bought a new position in The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm bought 324,496 shares of the insurance provider's stock, valued at approximately $69,481,000. Bank of New York Mellon Corp owned 0.93% of The Hanover Insurance Group as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently bought and sold shares of the stock. JPL Wealth Management LLC bought a new stake in The Hanover Insurance Group during the 3rd quarter worth approximately $26,000. McMillan Office Inc. purchased a new position in The Hanover Insurance Group during the fourth quarter valued at approximately $31,000. Entrust Financial LLC bought a new position in shares of The Hanover Insurance Group in the fourth quarter worth approximately $33,000. Clearstead Trust LLC bought a new position in shares of The Hanover Insurance Group in the second quarter worth approximately $36,000. Finally, Root Financial Partners LLC increased its stake in shares of The Hanover Insurance Group by 69.3% in the first quarter. Root Financial Partners LLC now owns 237 shares of the insurance provider's stock worth $41,000 after purchasing an additional 97 shares in the last quarter. 86.61% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts have issued reports on THG shares. Piper Sandler lowered The Hanover Insurance Group from an "overweight" rating to a "neutral" rating and set a $220.00 price target for the company. in a research note on Wednesday, July 15th. Oppenheimer upped their price objective on The Hanover Insurance Group from $205.00 to $220.00 and gave the stock an "outperform" rating in a research note on Thursday, May 21st. BMO Capital Markets cut The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and increased their target price for the stock from $194.00 to $203.00 in a research report on Tuesday, May 19th. Citigroup reissued an "outperform" rating on shares of The Hanover Insurance Group in a research note on Friday, July 10th. Finally, Royal Bank Of Canada boosted their price target on 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. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $225.71.

The Hanover Insurance Group Stock Down 0.1%

Shares of THG opened at $227.22 on Wednesday. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 0.22. The business has a fifty day moving average of $218.14 and a 200 day moving average of $194.24. The company has a market cap of $7.91 billion, a PE ratio of 10.85 and a beta of 0.27. The Hanover Insurance Group, Inc. has a 52-week low of $166.54 and a 52-week high of $236.07.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The insurance provider reported $5.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.84 by $1.47. The firm had revenue of $1.73 billion during the quarter, compared to analyst estimates of $1.65 billion. The Hanover Insurance Group had a return on equity of 21.72% and a net margin of 11.17%.The Hanover Insurance Group's quarterly revenue was up 4.6% compared to the same quarter last year. During the same period last year, the company earned $4.35 EPS. On average, sell-side analysts expect that The Hanover Insurance Group, Inc. will post 20.17 EPS for the current year.

The Hanover Insurance Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, June 12th were given a dividend of $0.95 per share. The ex-dividend date of this dividend was Friday, June 12th. This represents a $3.80 dividend on an annualized basis and a yield of 1.7%. The Hanover Insurance Group's payout ratio is 18.14%.

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

Insiders Place Their Bets

In other news, EVP Dennis Francis Kerrigan sold 2,104 shares of the company's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $222.41, for a total value of $467,950.64. Following the completion of the sale, the executive vice president owned 12,003 shares of the company's stock, valued at approximately $2,669,587.23. This represents a 14.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Jane D. Carlin sold 1,000 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $231.50, for a total transaction of $231,500.00. Following the transaction, the director owned 2,270 shares in the company, valued at approximately $525,505. This represents a 30.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 9,655 shares of company stock valued at $2,145,846. 2.80% of the stock is currently owned by corporate insiders.

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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