Meiji Yasuda Asset Management Co Ltd. Makes New Investment in The Hanover Insurance Group, Inc. $THG

Key Points

• Meiji Yasuda Asset Management purchased 29,298 shares of The Hanover Insurance Group worth approximately $6.27 million, while institutional investors collectively owned 86.61% of the company.
• The Hanover reported quarterly earnings of $5.31 per share, surpassing estimates of $3.84, as revenue rose 4.6% year over year to $1.73 billion.
• The company authorized a $700 million share buyback and pays a quarterly dividend of $0.95 per share. Analysts maintain a “Moderate Buy” consensus with an average price target of $225.71.

Meiji Yasuda Asset Management Co Ltd. purchased a new stake in shares of The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 29,298 shares of the insurance provider's stock, valued at approximately $6,273,000. Meiji Yasuda Asset Management Co Ltd. owned approximately 0.08% of The Hanover Insurance Group at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Legato Capital Management LLC purchased a new position in shares of The Hanover Insurance Group in the fourth quarter worth about $1,238,000. Intech Investment Management LLC purchased a new position in The Hanover Insurance Group in the fourth quarter worth approximately $4,926,000. UBS Group AG grew its holdings in shares of The Hanover Insurance Group by 58.7% during the 4th quarter. UBS Group AG now owns 149,300 shares of the insurance provider's stock worth $27,288,000 after purchasing an additional 55,220 shares during the period. Norges Bank acquired a new stake in shares of The Hanover Insurance Group during the fourth quarter valued at about $83,817,000. Finally, Dockside LLC acquired a new stake in The Hanover Insurance Group in the 4th quarter valued at approximately $1,225,000. 86.61% of the stock is currently owned by hedge funds and other institutional investors.

The Hanover Insurance Group Stock Performance

Shares of The Hanover Insurance Group stock opened at $223.23 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 firm's 50 day moving average is $217.00 and its two-hundred day moving average is $193.50. The firm has a market capitalization of $7.77 billion, a P/E ratio of 10.66 and a beta of 0.27. The Hanover Insurance Group, Inc. has a 52 week low of $166.54 and a 52 week high of $236.07.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The insurance provider reported $5.31 EPS for the quarter, topping 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 company had revenue of $1.73 billion for the quarter, compared to analyst estimates of $1.65 billion. During the same quarter in the previous year, the company posted $4.35 earnings per share. The firm's revenue was up 4.6% compared to the same quarter last year. Research analysts forecast that The Hanover Insurance Group, Inc. will post 20.17 EPS for the current fiscal year.

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

The Hanover Insurance Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders 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 was Friday, June 12th. The Hanover Insurance Group's payout ratio is presently 18.14%.

Insider Activity

In related news, Director Jane D. Carlin sold 1,000 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $231.50, for a total value of $231,500.00. Following the sale, the director owned 2,270 shares in the company, valued at $525,505. This represents a 30.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Dennis Francis 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 completion of the sale, the executive vice president directly owned 12,003 shares in the company, valued at approximately $2,650,142.37. The trade was a 35.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 9,655 shares of company stock worth $2,145,846 over the last 90 days. 2.80% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. Citigroup reissued an "outperform" rating on shares of The Hanover Insurance Group in a research note on Friday, July 10th. Oppenheimer boosted their price target on shares of The Hanover Insurance Group from $205.00 to $220.00 and gave the stock an "outperform" rating in a research note on Thursday, May 21st. Weiss Ratings raised shares of The Hanover Insurance Group from a "buy (a-)" rating to a "buy (a)" rating in a research report on Thursday, July 30th. Piper Sandler lowered shares of The Hanover Insurance Group from an "overweight" rating to a "neutral" rating and set a $220.00 price objective for the company. in a research note on Wednesday, July 15th. Finally, BMO Capital Markets cut shares of The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and lifted their price objective for the company from $194.00 to $203.00 in a report on Tuesday, May 19th. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $225.71.

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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