BlackRock Inc. Buys Shares of 3,532,932 The Hanover Insurance Group, Inc. $THG

Key Points

• BlackRock acquired 3.53 million shares of The Hanover Insurance Group in the second quarter, valued at approximately $756.5 million and representing a 10.15% stake. Institutional investors collectively own 86.61% of the insurer.
• 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 stock opened at $223.23, near its 52-week high of $236.07.
• The company authorized a $700 million share-repurchase program and pays a quarterly dividend of $0.95 per share, equivalent to a 1.7% annualized yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $225.71, while insiders have sold 9,655 shares over the past 90 days.

BlackRock Inc. bought a new stake in shares of The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 3,532,932 shares of the insurance provider's stock, valued at approximately $756,471,000. BlackRock Inc. owned about 10.15% of The Hanover Insurance Group as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also recently made changes to their positions in the stock. JPL Wealth Management LLC purchased a new position in The Hanover Insurance Group during the third quarter valued at $26,000. McMillan Office Inc. purchased a new stake in shares of The Hanover Insurance Group in the fourth quarter worth $31,000. Entrust Financial LLC purchased a new stake in shares of The Hanover Insurance Group in the fourth quarter worth $33,000. Clearstead Trust LLC bought a new position in shares of The Hanover Insurance Group during the second quarter valued at $36,000. Finally, Root Financial Partners LLC increased its holdings in shares of The Hanover Insurance Group by 69.3% during the first quarter. Root Financial Partners LLC now owns 237 shares of the insurance provider's stock valued at $41,000 after acquiring an additional 97 shares in the last quarter. 86.61% of the stock is owned by institutional investors.

Insider Transactions at The Hanover Insurance Group

In other news, Director Jane D. 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 value of $231,500.00. Following the sale, the director directly owned 2,270 shares of the company's stock, valued at approximately $525,505. The trade was a 30.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Dennis Francis Kerrigan sold 6,551 shares of the business's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $220.79, for a total value of $1,446,395.29. Following the completion of the sale, the executive vice president owned 12,003 shares in the company, valued at $2,650,142.37. This represents a 35.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 9,655 shares of company stock valued at $2,145,846. Company insiders own 2.80% of the company's stock.

The Hanover Insurance Group Stock Up 0.1%

THG opened at $223.23 on Friday. The stock has a market cap of $7.77 billion, a price-to-earnings ratio of 10.66 and a beta of 0.27. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.38 and a current ratio of 0.38. The firm's fifty day moving average is $217.00 and its 200 day moving average is $193.36. The Hanover Insurance Group, Inc. has a fifty-two week low of $166.54 and a fifty-two 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 Hanover Insurance Group had a return on equity of 21.72% and a net margin of 11.17%.The business had revenue of $1.73 billion during the quarter, compared to analyst estimates of $1.65 billion. During the same quarter in the prior year, the business posted $4.35 EPS. The Hanover Insurance Group's revenue for the quarter was up 4.6% compared to the same quarter last year. On average, sell-side analysts forecast that The Hanover Insurance Group, Inc. will post 20.17 earnings per share for the current fiscal year.

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

The Hanover Insurance Group Announces Dividend

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

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. BMO Capital Markets lowered 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 research report on Tuesday, May 19th. Zacks Research raised The Hanover Insurance Group from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 5th. Keefe, Bruyette & Woods upped their price target on The Hanover Insurance Group from $220.00 to $222.00 and gave the stock a "market perform" rating in a research report on Thursday, August 6th. Oppenheimer raised 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. Finally, Citigroup reaffirmed an "outperform" rating on shares of The Hanover Insurance Group in a research report on Friday, July 10th. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $225.71.

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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