Hsbc Holdings PLC Trims Stake in The Hanover Insurance Group, Inc. $THG

Key Points

• HSBC Holdings cut its Hanover Insurance stake by 89.2% in the second quarter, selling 30,123 shares and retaining 3,632 shares valued at approximately $777,000. Institutional investors collectively own 86.61% of THG.
• Analysts remain generally positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $225.71. Several firms recently raised their targets, with Citizens JMP setting the highest cited target at $240.
• 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 company also declared a $0.95 quarterly dividend, equivalent to a 1.7% yield.

Hsbc Holdings PLC reduced its stake in The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) by 89.2% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,632 shares of the insurance provider's stock after selling 30,123 shares during the period. Hsbc Holdings PLC's holdings in The Hanover Insurance Group were worth $777,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of THG. JPL Wealth Management LLC purchased a new position in shares of The Hanover Insurance Group during the 3rd quarter worth approximately $26,000. Clearstead Trust LLC purchased a new position in shares of The Hanover Insurance Group in the 2nd quarter valued at approximately $36,000. McMillan Office Inc. purchased a new position in shares of The Hanover Insurance Group in the 4th quarter valued at approximately $31,000. Entrust Financial LLC bought a new stake in shares of The Hanover Insurance Group during the fourth quarter valued at approximately $33,000. Finally, Root Financial Partners LLC boosted its position 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 purchasing an additional 97 shares in the last quarter. 86.61% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms have issued reports on THG. Weiss Ratings upgraded The Hanover Insurance Group from a "buy (a-)" rating to a "buy (a)" rating in a report on Thursday, July 30th. Citizens Jmp boosted their target price 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. Zacks Research raised shares of The Hanover Insurance Group from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 5th. Keefe, Bruyette & Woods upped their target price on shares of 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. Finally, Royal Bank Of Canada increased their price target on shares of The Hanover Insurance Group from $215.00 to $235.00 and gave the stock a "sector perform" rating in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, The Hanover Insurance Group presently has an average rating of "Moderate Buy" and an average price target of $225.71.

The Hanover Insurance Group Stock Performance

The Hanover Insurance Group stock opened at $225.88 on Monday. 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 company has a market capitalization of $7.87 billion, a P/E ratio of 10.78 and a beta of 0.26. The stock's 50 day moving average is $222.65 and its 200 day moving average is $199.09. The Hanover Insurance Group, Inc. has a twelve month low of $166.54 and a twelve month high of $236.07.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The insurance provider reported $5.31 earnings per share (EPS) for the quarter, beating 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 analysts' expectations of $1.65 billion. During the same quarter in the previous year, the business earned $4.35 earnings per share. The firm's quarterly revenue was up 4.6% compared to the same quarter last year. On average, equities research analysts predict that The Hanover Insurance Group, Inc. will post 20.17 earnings per share for the current fiscal year.

The Hanover Insurance Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 11th will be issued a dividend of $0.95 per share. The ex-dividend date is Friday, September 11th. This represents a $3.80 annualized dividend and a dividend yield of 1.7%. The Hanover Insurance Group's dividend payout ratio (DPR) is presently 18.14%.

Insider Activity

In related news, EVP Dennis Kerrigan sold 6,551 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $220.79, for a total transaction of $1,446,395.29. Following the sale, the executive vice president directly owned 12,003 shares of the company's stock, valued at approximately $2,650,142.37. This represents a 35.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Jane Carlin sold 1,000 shares of the firm's stock in a transaction dated 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 represents a 30.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 9,655 shares of company stock valued at $2,145,846. 2.80% of the stock is owned by insiders.

The Hanover Insurance Group Company Profile

The Hanover Insurance Group, Inc is a holding company that provides property and casualty insurance products and services through a network of independent agents. Its offerings are designed for individuals, families, businesses and specialty-market customers, with a focus on helping policyholders manage risks involving property, automobiles, liability and business operations.

The company's personal lines business includes automobile, homeowners, renters, condominium, umbrella and related insurance products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.