The Hanover Insurance Group, Inc. $THG Shares Bought by Hodges Capital Management Inc.

Key Points

• Hodges Capital Management increased its stake in The Hanover Insurance Group by 14.4% in the first quarter, while other institutional investors also boosted holdings; hedge funds and institutions now own 86.61% of the stock.
• The company posted strong first-quarter results, with EPS of $5.25 topping estimates of $4.14 and revenue of $1.70 billion beating expectations. Revenue rose 6.1% year over year, and analysts now expect full-year EPS of 18.36.
• The Hanover also announced a $700 million share buyback program and recently paid a quarterly dividend of $0.95 per share, equal to a 1.7% annualized yield.

Hodges Capital Management Inc. raised its position in The Hanover Insurance Group, Inc. (NYSE:THG - Free Report) by 14.4% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 49,188 shares of the insurance provider's stock after acquiring an additional 6,180 shares during the period. Hodges Capital Management Inc. owned approximately 0.14% of The Hanover Insurance Group worth $8,527,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in THG. First Trust Advisors LP raised its position in shares of The Hanover Insurance Group by 28.5% during the 3rd quarter. First Trust Advisors LP now owns 639,264 shares of the insurance provider's stock worth $116,110,000 after purchasing an additional 141,835 shares during the last quarter. Legato Capital Management LLC acquired a new stake in The Hanover Insurance Group in the 4th quarter worth about $1,238,000. Capula Management Ltd acquired a new stake in shares of The Hanover Insurance Group in the third quarter worth approximately $1,877,000. UBS Group AG grew its holdings in The Hanover Insurance Group by 58.7% in the fourth 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 during the period. Finally, Intech Investment Management LLC purchased a new stake in The Hanover Insurance Group in the fourth quarter valued at approximately $4,926,000. Hedge funds and other institutional investors own 86.61% of the company's stock.

Insider Buying and Selling

In other The Hanover Insurance Group news, EVP Denise Lowsley sold 4,175 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $191.73, for a total value of $800,472.75. Following the completion of the transaction, the executive vice president owned 3,883 shares in the company, valued at $744,487.59. This represents a 51.81% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Francisco Aristeguieta sold 1,000 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $195.37, for a total transaction of $195,370.00. Following the completion of the sale, the director directly owned 4,053 shares of the company's stock, valued at $791,834.61. This trade represents a 19.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 29,508 shares of company stock valued at $5,704,651. 2.80% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of equities analysts have weighed in on THG shares. Piper Sandler increased their price target on shares of The Hanover Insurance Group from $212.00 to $220.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 26th. BMO Capital Markets downgraded The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and upped their price objective for the stock from $194.00 to $203.00 in a report on Tuesday, May 19th. Keefe, Bruyette & Woods increased their target price on The Hanover Insurance Group from $208.00 to $211.00 and gave the stock an "outperform" rating in a research report on Thursday, May 7th. Citizens Jmp lifted their target price on The Hanover Insurance Group from $200.00 to $205.00 and gave the company a "market outperform" rating in a report on Thursday, April 30th. Finally, Morgan Stanley set a $195.00 price target on The Hanover Insurance Group in a research report on Friday, May 1st. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $207.00.

The Hanover Insurance Group Price Performance

The Hanover Insurance Group stock opened at $221.14 on Monday. The firm has a fifty day moving average of $195.15 and a 200-day moving average of $182.77. The Hanover Insurance Group, Inc. has a 52-week low of $160.97 and a 52-week high of $221.70. 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 capitalization of $7.74 billion, a P/E ratio of 11.13 and a beta of 0.28.

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 for the quarter, beating the consensus estimate of $4.14 by $1.11. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%. The business had revenue of $1.70 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same quarter in the previous year, the business posted $3.87 EPS. The business's quarterly revenue was up 6.1% on a year-over-year basis. As a group, analysts predict that The Hanover Insurance Group, Inc. will post 18.36 EPS for the current year.

The Hanover Insurance Group announced that its board has initiated a stock buyback program on Wednesday, May 13th that permits the company to buyback $700.00 million in outstanding shares. This buyback authorization permits the insurance provider to buy up to 10.6% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors 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. Stockholders of record on Friday, June 12th were given a $0.95 dividend. The ex-dividend date of this dividend was Friday, June 12th. This represents a $3.80 annualized dividend and a dividend yield of 1.7%. The Hanover Insurance Group's dividend payout ratio is presently 19.12%.

The Hanover Insurance Group 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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