Hiscox (LON:HSX) Shares Up 9.4% - Still a Buy?

Key Points

• Hiscox Ltd shares rose by 9.4%, reaching a high of GBX 1,454 ($19.42) before closing slightly lower at GBX 1,379 ($18.42) during trading.
• Several analysts have given Hiscox a "buy" rating, with price targets ranging from GBX 1,450 ($19.37) to GBX 1,460 ($19.50).
• Hiscox operates in insurance and reinsurance, offering services across four segments, including commercial insurance for small and medium-sized businesses.

Shares of Hiscox Ltd (LON:HSX - Get Free Report) were up 9.4% during mid-day trading on Wednesday . The stock traded as high as GBX 1,454 ($19.56) and last traded at GBX 1,379 ($18.55). Approximately 3,353,292 shares changed hands during mid-day trading, an increase of 70% from the average daily volume of 1,972,280 shares. The stock had previously closed at GBX 1,260 ($16.95).

Analysts Set New Price Targets

HSX has been the topic of several research analyst reports. Berenberg Bank upped their price objective on Hiscox from GBX 1,450 ($19.50) to GBX 1,580 ($21.25) and gave the company a "buy" rating in a research note on Thursday. Peel Hunt reiterated a "buy" rating and issued a GBX 1,460 ($19.64) price objective on shares of Hiscox in a research note on Thursday, July 3rd. Royal Bank Of Canada upped their price objective on Hiscox from GBX 1,300 ($17.48) to GBX 1,400 ($18.83) and gave the company a "sector perform" rating in a research note on Thursday. Finally, JPMorgan Chase & Co. reiterated an "overweight" rating on shares of Hiscox in a research note on Friday, August 1st.

Hiscox Trading Up 0.7%

The company has a market capitalization of £5.83 billion, a PE ratio of 8.30, a price-to-earnings-growth ratio of -2.30 and a beta of 0.65. The business's fifty day moving average is GBX 1,282.03 and its two-hundred day moving average is GBX 1,186.84.

Hiscox announced that its board has approved a share repurchase program on Wednesday, August 6th that authorizes the company to repurchase $275.00 million in shares. This repurchase authorization authorizes the company to buy up to 4.6% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its stock is undervalued.

About Hiscox

Hiscox Ltd, through its subsidiaries, provides insurance and reinsurance services in the United Kingdom, Europe, the United States, and internationally. The company operates through four segments: Hiscox Retail, Hiscox London Market, Hiscox Re & ILS, and Corporate Centre. It offers commercial insurance for small-and medium-sized businesses; and personal lines cover, including high-value household, fine art, and luxury motor, as well as artwork, antiques, classic cars, jewelry, collectables, and other assets through brokers, partners, and direct-to-consumers.