California State Teachers Retirement System Buys 10,188 Shares of The Hanover Insurance Group, Inc. $THG

Key Points

• California State Teachers Retirement System increased its Hanover Insurance Group stake by 30.7%, adding 10,188 shares to own 43,399 shares valued at approximately $7.5 million. Institutional investors collectively hold 86.61% of THG.
• Hanover reported strong quarterly results, with EPS of $5.31 versus the $3.84 consensus and revenue of $1.73 billion, up 4.6% year over year. The company also authorized a $700 million share-repurchase plan and pays a $0.95 quarterly dividend.
• Analyst sentiment remains moderately positive, with a consensus “Moderate Buy” rating and a $223.29 target price, although Piper Sandler downgraded the stock to neutral. THG opened at $228.13, near its 52-week high of $236.07.

California State Teachers Retirement System lifted its position in The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) by 30.7% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 43,399 shares of the insurance provider's stock after purchasing an additional 10,188 shares during the quarter. California State Teachers Retirement System owned about 0.12% of The Hanover Insurance Group worth $7,523,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the company. Norges Bank purchased a new position in shares of The Hanover Insurance Group during the 4th quarter worth about $83,817,000. Alliancebernstein L.P. increased its holdings in The Hanover Insurance Group by 36.1% during the 2nd quarter. Alliancebernstein L.P. now owns 1,280,418 shares of the insurance provider's stock worth $217,505,000 after purchasing an additional 339,896 shares during the period. AQR Capital Management LLC increased its stake in shares of 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 valued at $137,967,000 after buying an additional 209,616 shares during the period. Invesco Ltd. raised its holdings in shares of The Hanover Insurance Group by 44.1% in the 4th quarter. Invesco Ltd. now owns 646,910 shares of the insurance provider's stock valued at $118,236,000 after purchasing an additional 197,930 shares in the last quarter. Finally, Balyasny Asset Management L.P. raised its holdings in shares of The Hanover Insurance Group by 206.0% in the 3rd quarter. Balyasny Asset Management L.P. now owns 292,121 shares of the insurance provider's stock valued at $53,058,000 after purchasing an additional 196,655 shares in the last quarter. Hedge funds and other institutional investors own 86.61% of the company's stock.

Analyst Ratings Changes

A number of analysts have weighed in on THG shares. Piper Sandler lowered 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. Keefe, Bruyette & Woods reissued a "market perform" rating and issued a $220.00 price target (up from $211.00) on shares of The Hanover Insurance Group in a research report on Wednesday, July 8th. Weiss Ratings upgraded The Hanover Insurance Group from a "buy (a-)" rating to a "buy (a)" rating in a research note on Thursday, July 30th. Citizens Jmp raised their price target on shares of The Hanover Insurance Group from $225.00 to $240.00 and gave the company a "market outperform" rating in a report on Wednesday, July 29th. Finally, Morgan Stanley upped their target price on The Hanover Insurance Group from $220.00 to $225.00 and gave the company an "equal weight" rating in a research report on Wednesday, July 8th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, The Hanover Insurance Group currently has an average rating of "Moderate Buy" and a consensus target price of $223.29.

The Hanover Insurance Group Trading Down 1.8%

THG opened at $228.13 on Wednesday. The company's 50 day simple moving average is $208.24 and its two-hundred day simple moving average is $188.64. The firm has a market capitalization of $7.94 billion, a price-to-earnings ratio of 10.89 and a beta of 0.27. 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, Inc. has a 1-year low of $165.50 and a 1-year high of $236.07.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last announced its quarterly 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 return on equity of 21.72% and a net margin of 11.17%.The business had revenue of $1.73 billion for the quarter, compared to analyst estimates of $1.65 billion. During the same quarter in the prior year, the company posted $4.35 EPS. The company's quarterly revenue was up 4.6% on a year-over-year basis. Analysts expect that The Hanover Insurance Group, Inc. will post 19.15 EPS for the current fiscal year.

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. This represents a $3.80 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Friday, June 12th. The Hanover Insurance Group's payout ratio is 18.14%.

The Hanover Insurance Group announced that its Board of Directors has approved a stock buyback plan on Wednesday, May 13th that authorizes the company to repurchase $700.00 million in shares. This repurchase authorization authorizes the insurance provider to reacquire up to 10.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at The Hanover Insurance Group

In other The Hanover Insurance Group news, Director Jane D. Carlin sold 1,000 shares of the firm's 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 sale, the director owned 2,270 shares of the company's stock, valued at approximately $525,505. This trade represents a 30.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Denise Lowsley sold 4,175 shares of the company's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $191.73, for a total transaction of $800,472.75. Following the completion of the transaction, the executive vice president owned 3,883 shares of the company's stock, valued at $744,487.59. This represents a 51.81% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 27,108 shares of company stock worth $5,295,251. Corporate 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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