Legato Capital Management LLC Makes New Investment in The Hanover Insurance Group, Inc. $THG

Key Points

• Legato Capital Management opened a new position in The Hanover Insurance Group, buying 6,774 shares worth about $1.24 million in the fourth quarter.
• Several analysts remain constructive on THG, with recent price-target increases and a current consensus rating of Moderate Buy; the average target price is about $205.86.
• The company reported strong quarterly results, beating EPS and revenue estimates, and its board authorized a $700 million share repurchase program, signaling confidence in the stock.

Legato Capital Management LLC bought a new position in shares of The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) during the 4th quarter, according to the company in its most recent filing with the SEC. The fund bought 6,774 shares of the insurance provider's stock, valued at approximately $1,238,000.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the business. Millennium Management LLC boosted its stake in shares of The Hanover Insurance Group by 61.0% during the 1st quarter. Millennium Management LLC now owns 88,367 shares of the insurance provider's stock worth $15,371,000 after acquiring an additional 33,495 shares in the last quarter. NewEdge Advisors LLC boosted its stake in shares of The Hanover Insurance Group by 1,568.9% during the 1st quarter. NewEdge Advisors LLC now owns 751 shares of the insurance provider's stock worth $131,000 after acquiring an additional 706 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of The Hanover Insurance Group by 21.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 218,753 shares of the insurance provider's stock worth $38,052,000 after acquiring an additional 38,905 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of The Hanover Insurance Group by 6.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 129,031 shares of the insurance provider's stock worth $22,445,000 after acquiring an additional 7,712 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in shares of The Hanover Insurance Group by 7.7% during the 2nd quarter. Invesco Ltd. now owns 283,484 shares of the insurance provider's stock worth $48,155,000 after acquiring an additional 20,294 shares in the last quarter. Institutional investors and hedge funds own 86.61% of the company's stock.

Insider Transactions at The Hanover Insurance Group

In related news, EVP Dennis Francis Kerrigan sold 6,262 shares of the company's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $192.99, for a total value of $1,208,503.38. Following the sale, the executive vice president owned 11,988 shares of the company's stock, valued at approximately $2,313,564.12. This represents a 34.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO John C. Roche sold 8,358 shares of the company's stock in a transaction that occurred on Wednesday, May 20th. The shares were 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 directly owned 141,011 shares in the company, valued at approximately $27,319,471.14. The trade was a 5.60% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 29,708 shares of company stock worth $5,726,373 in the last quarter. Insiders own 2.80% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently commented on THG. BMO Capital Markets lowered The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and boosted their price target for the stock from $194.00 to $203.00 in a research note on Tuesday, May 19th. Citizens Jmp boosted their price target on 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. Keefe, Bruyette & Woods boosted their price target on The Hanover Insurance Group from $208.00 to $211.00 and gave the stock an "outperform" rating in a research note on Thursday, May 7th. Zacks Research raised The Hanover Insurance Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 4th. Finally, Royal Bank Of Canada boosted their price target on The Hanover Insurance Group from $190.00 to $195.00 and gave the stock a "sector perform" rating in a research note on Friday, May 1st. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $205.86.

The Hanover Insurance Group News Summary

Here are the key news stories impacting The Hanover Insurance Group this week:

• Positive Sentiment: THG was upgraded to Zacks Rank #1 (Strong Buy), with Zacks citing improving earnings outlook and stronger estimate trends. Article title
• Positive Sentiment: THG also landed on Zacks’ Strong Buy income and Strong Buy value stock lists, reinforcing the view that the shares may still be attractive after a strong earnings beat and recent rally. Article title Article title
• Positive Sentiment: Earlier analyst updates remained constructive, including Oppenheimer raising its price target to $220 and maintaining an outperform view, which suggests further upside from current levels. Article title
• Neutral Sentiment: Two executives disclosed stock sales, including CEO John C. Roche and EVP Dennis Francis Kerrigan. Insider selling can sometimes weigh on sentiment, but the transactions were part of routine filings and do not by themselves signal a business deterioration. Article title
• Positive Sentiment: The company’s latest earnings report was strong, with EPS and revenue both topping estimates, and THG also authorized a $700 million share repurchase program, a shareholder-friendly move that can support the stock.

The Hanover Insurance Group Price Performance

THG stock opened at $195.34 on Monday. The Hanover Insurance Group, Inc. has a 1 year low of $160.70 and a 1 year high of $199.59. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.37 and a current ratio of 0.37. The stock's 50 day moving average price is $180.32 and its 200 day moving average price is $178.90. The firm has a market cap of $6.83 billion, a P/E ratio of 9.83 and a beta of 0.31.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last posted its earnings results on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.14 by $1.11. The Hanover Insurance Group had a return on equity of 21.55% and a net margin of 10.77%.The firm had revenue of $1.70 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same quarter in the prior year, the company earned $3.87 EPS. The Hanover Insurance Group's revenue was up 6.1% on a year-over-year basis. On average, sell-side analysts expect that The Hanover Insurance Group, Inc. will post 18.45 earnings per share for the current fiscal year.

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

The Hanover Insurance Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, March 27th. Investors of record on Friday, March 13th were paid a $0.95 dividend. The ex-dividend date of this dividend was Friday, March 13th. This represents a $3.80 dividend on an annualized basis and a yield of 1.9%. The Hanover Insurance Group's dividend payout ratio is presently 19.12%.

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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