Norges Bank Makes New $83.82 Million Investment in The Hanover Insurance Group, Inc. $THG

Key Points

• Norges Bank bought a new stake in The Hanover Insurance Group during the fourth quarter, acquiring 458,591 shares valued at about $83.8 million, or roughly 1.29% of the company.
• The Hanover reported strong first-quarter results, with EPS of $5.25 versus $4.14 expected and revenue of $1.70 billion, topping estimates as revenue rose 6.1% year over year.
• The company also authorized a $700 million share buyback and announced a quarterly dividend of $0.95 per share, equal to a 2.0% annualized yield.

Norges Bank acquired a new position in shares of The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 458,591 shares of the insurance provider's stock, valued at approximately $83,817,000. Norges Bank owned about 1.29% of The Hanover Insurance Group as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also modified their holdings of THG. Millennium Management LLC increased its holdings in 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 purchasing an additional 33,495 shares during the period. NewEdge Advisors LLC boosted its position 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 position 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 position 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. grew its stake in 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 buying an additional 20,294 shares during the last quarter. Institutional investors and hedge funds own 86.61% of the company's stock.

The Hanover Insurance Group Stock Up 3.4%

Shares of The Hanover Insurance Group stock opened at $193.38 on Friday. 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 $6.77 billion, a P/E ratio of 9.73 and a beta of 0.30. The Hanover Insurance Group, Inc. has a fifty-two week low of $160.70 and a fifty-two week high of $199.59. The business has a 50-day moving average price of $183.87 and a 200 day moving average price of $179.62.

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 earnings per share for the quarter, beating the consensus estimate 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 Hanover Insurance Group's quarterly revenue was up 6.1% on a year-over-year basis. During the same period in the previous year, the company earned $3.87 earnings per share. On average, sell-side analysts forecast that The Hanover Insurance Group, Inc. will post 18.36 earnings per share for the current fiscal year.

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

The Hanover Insurance Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders 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 is 19.12%.

Insider Transactions at The Hanover Insurance Group

In other The Hanover Insurance Group news, EVP Dennis Francis Kerrigan sold 6,262 shares of the business's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $192.99, for a total transaction of $1,208,503.38. Following the sale, the executive vice president directly owned 11,988 shares of the company's stock, valued at $2,313,564.12. The trade was a 34.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Denise Lowsley sold 4,175 shares of the company's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $191.73, for a total transaction of $800,472.75. Following the completion of the transaction, the executive vice president directly owned 3,883 shares in the company, valued at $744,487.59. This trade represents a 51.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 29,508 shares of company stock valued at $5,704,651 over the last three months. 2.80% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Royal Bank Of Canada increased their price objective on The Hanover Insurance Group from $190.00 to $195.00 and gave the stock a "sector perform" rating in a research report on Friday, May 1st. Morgan Stanley set a $195.00 price target on The Hanover Insurance Group in a report on Friday, May 1st. Piper Sandler raised their price objective on The Hanover Insurance Group from $212.00 to $220.00 and gave the company an "overweight" rating in a research note on Tuesday, May 26th. Oppenheimer raised their price target on The Hanover Insurance Group from $205.00 to $220.00 and gave the stock an "outperform" rating in a research report on Thursday, May 21st. Finally, Weiss Ratings raised The Hanover Insurance Group from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Friday, May 22nd. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock 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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