Geode Capital Management LLC Has $133.07 Million Stock Holdings in The Hanover Insurance Group, Inc. $THG

Key Points

• Geode Capital Management increased its stake in The Hanover Insurance Group by 4.3% in the fourth quarter, ending with 727,958 shares worth about $133.1 million.
• The company reported a strong quarter, with EPS of $5.25 beating estimates and revenue of $1.70 billion topping forecasts; management also approved a $700 million share buyback program.
• The Hanover also announced a quarterly dividend of $0.95 per share, while analysts maintain a Moderate Buy consensus with an average price target of $207.

Geode Capital Management LLC grew its holdings in The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) by 4.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 727,958 shares of the insurance provider's stock after buying an additional 29,870 shares during the quarter. Geode Capital Management LLC owned approximately 2.05% of The Hanover Insurance Group worth $133,073,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. JPL Wealth Management LLC acquired a new stake in shares of The Hanover Insurance Group in the third quarter valued at $26,000. Community Bank N.A. acquired a new stake in shares of The Hanover Insurance Group in the third quarter valued at $27,000. Entrust Financial LLC acquired a new stake in shares of The Hanover Insurance Group in the fourth quarter valued at $33,000. Clearstead Advisors LLC increased its stake in shares of The Hanover Insurance Group by 300.0% in the third quarter. Clearstead Advisors LLC now owns 200 shares of the insurance provider's stock valued at $36,000 after buying an additional 150 shares in the last quarter. Finally, Abich Financial Wealth Management LLC acquired a new stake in shares of The Hanover Insurance Group in the third quarter valued at $43,000. 86.61% of the stock is currently owned by institutional investors and hedge funds.

The Hanover Insurance Group Price Performance

Shares of THG stock opened at $187.12 on Friday. The stock has a 50-day moving average price of $183.42 and a 200 day moving average price of $179.52. The company has a quick ratio of 0.37, a current ratio of 0.37 and a debt-to-equity ratio of 0.22. The firm has a market cap of $6.55 billion, a price-to-earnings ratio of 9.42 and a beta of 0.30. The Hanover Insurance Group, Inc. has a 12 month low of $160.70 and a 12 month high of $199.59.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $5.25 EPS for the quarter, topping analysts' consensus estimates of $4.14 by $1.11. The firm had revenue of $1.70 billion during the quarter, compared to analyst estimates of $1.58 billion. The Hanover Insurance Group had a return on equity of 21.55% and a net margin of 10.77%.The company's revenue was up 6.1% on a year-over-year basis. During the same period last year, the company earned $3.87 earnings per share. Research analysts expect that The Hanover Insurance Group, Inc. will post 18.36 EPS for the current year.

The Hanover Insurance Group declared that its Board of Directors has initiated a share buyback program on Wednesday, May 13th that authorizes the company to buyback $700.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to buy up to 10.6% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

The Hanover Insurance Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Friday, June 12th will be given a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date is Friday, June 12th. The Hanover Insurance Group's dividend payout ratio (DPR) is presently 19.12%.

Insider Transactions at The Hanover Insurance Group

In related news, Director Cynthia Egan sold 3,400 shares of The Hanover Insurance Group stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $188.50, for a total value of $640,900.00. Following the completion of the sale, the director directly owned 9,359 shares in the company, valued at $1,764,171.50. This trade represents a 26.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO John C. Roche sold 8,358 shares of The Hanover Insurance Group stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $193.74, for a total value of $1,619,278.92. Following the completion of the sale, the chief executive officer 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 29,508 shares of company stock valued at $5,704,651. 2.80% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on THG. Morgan Stanley set a $195.00 target price on The Hanover Insurance Group in a research note on Friday, May 1st. Weiss Ratings upgraded The Hanover Insurance Group from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Friday, May 22nd. Citizens Jmp raised their target price on The Hanover Insurance Group from $200.00 to $205.00 and gave the company a "market outperform" rating in a research note on Thursday, April 30th. Keefe, Bruyette & Woods raised their target price on The Hanover Insurance Group from $208.00 to $211.00 and gave the company an "outperform" rating in a research note on Thursday, May 7th. Finally, Zacks Research upgraded The Hanover Insurance Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 4th. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, The Hanover Insurance Group has a consensus rating of "Moderate Buy" and a consensus price target of $207.00.

The Hanover Insurance Group Company Profile

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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