Hsbc Holdings PLC Acquires 14,633 Shares of The Hanover Insurance Group, Inc. $THG

Key Points

• HSBC Holdings PLC nearly doubled its position in The Hanover Insurance Group during the fourth quarter, buying 14,633 additional shares and bringing its total stake to 29,787 shares valued at about $5.47 million.
• The Hanover reported strong quarterly results, with EPS of $5.25 beating estimates and revenue of $1.70 billion topping expectations; revenue also rose 6.1% year over year.
• The company is returning capital to shareholders through a quarterly dividend of $0.95 per share and a new $700 million share buyback program that could repurchase up to 10.6% of outstanding stock.

Hsbc Holdings PLC raised its stake in shares of The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) by 96.6% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 29,787 shares of the insurance provider's stock after purchasing an additional 14,633 shares during the quarter. Hsbc Holdings PLC owned 0.08% of The Hanover Insurance Group worth $5,470,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently modified their holdings of the stock. Legato Capital Management LLC bought a new stake in The Hanover Insurance Group in the fourth quarter valued at $1,238,000. Capula Management Ltd bought a new position in shares of The Hanover Insurance Group during the third quarter valued at $1,877,000. Intech Investment Management LLC bought a new position in shares of The Hanover Insurance Group during the fourth quarter valued at $4,926,000. UBS Group AG boosted its stake in shares of The Hanover Insurance Group by 58.7% in the 4th quarter. UBS Group AG now owns 149,300 shares of the insurance provider's stock valued at $27,288,000 after purchasing an additional 55,220 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of The Hanover Insurance Group in the 4th quarter worth about $83,817,000. 86.61% of the stock is currently owned by institutional investors.

The Hanover Insurance Group Stock Performance

The Hanover Insurance Group stock opened at $213.83 on Friday. The stock has a 50-day simple moving average of $198.04 and a 200 day simple moving average of $183.66. The stock has a market capitalization of $7.48 billion, a price-to-earnings ratio of 10.76 and a beta of 0.28. 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 Hanover Insurance Group, Inc. has a 12-month low of $162.66 and a 12-month high of $225.29.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last issued 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 for the quarter, compared to analyst estimates of $1.58 billion. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%. The company's revenue was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.87 EPS. On average, research analysts anticipate that The Hanover Insurance Group, Inc. will post 18.38 earnings per share for the current fiscal year.

The Hanover Insurance Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were paid a dividend of $0.95 per share. This represents a $3.80 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend was Friday, June 12th. The Hanover Insurance Group's dividend payout ratio is 19.12%.

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

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. Weiss Ratings upgraded shares of The Hanover Insurance Group from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Friday, May 22nd. Oppenheimer boosted their price target on shares of The Hanover Insurance Group from $205.00 to $220.00 and gave the company an "outperform" rating in a research report on Thursday, May 21st. Citizens Jmp upped their price objective on shares of The Hanover Insurance Group from $200.00 to $205.00 and gave the stock a "market outperform" rating in a research note on Thursday, April 30th. BMO Capital Markets lowered shares of The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and raised their price objective for the stock from $194.00 to $203.00 in a report on Tuesday, May 19th. Finally, Zacks Research cut shares of The Hanover Insurance Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, The Hanover Insurance Group currently has an average rating of "Moderate Buy" and a consensus target price of $212.57.

Insiders Place Their Bets

In related news, EVP Dennis Francis Kerrigan sold 6,262 shares of the firm's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $192.99, for a total value of $1,208,503.38. Following the completion of the sale, the executive vice president owned 11,988 shares of the company's stock, valued at $2,313,564.12. This trade represents a 34.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Cynthia Egan sold 3,400 shares of the stock in a transaction on Friday, May 1st. The shares were sold at an average price of $188.50, for a total value of $640,900.00. Following the completion of the transaction, the director owned 9,359 shares in the company, valued at $1,764,171.50. The trade was a 26.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 29,508 shares of company stock valued at $5,704,651 over the last quarter. Company 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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