Hiscox (LON:HSX) Shares Up 9.4% - What's Next?

Key Points

• Hiscox Ltd's shares increased by 9.4% during trading on Wednesday, reaching a high of GBX 1,454 ($19.42).
• The company has initiated a $275 million share repurchase program, indicating the board believes its shares are currently undervalued.
• Analysts have raised target prices for Hiscox, with Berenberg Bank increasing it to GBX 1,580 ($21.11) and maintaining a "buy" rating.

Hiscox Ltd (LON:HSX - Get Free Report)'s stock price rose 9.4% during trading on Wednesday . The company traded as high as GBX 1,454 ($19.42) and last traded at GBX 1,379 ($18.42). Approximately 3,353,292 shares were traded during trading, an increase of 70% from the average daily volume of 1,972,280 shares. The stock had previously closed at GBX 1,260 ($16.83).

Analyst Ratings Changes

Several research analysts recently issued reports on HSX shares. Royal Bank Of Canada raised their target price on Hiscox from GBX 1,125 ($15.03) to GBX 1,300 ($17.37) and gave the stock a "sector perform" rating in a research report on Friday, July 18th. Berenberg Bank upped their target price on Hiscox from GBX 1,450 ($19.37) to GBX 1,580 ($21.11) and gave the company a "buy" rating in a report on Thursday. JPMorgan Chase & Co. restated an "overweight" rating on shares of Hiscox in a report on Friday, August 1st. Finally, Peel Hunt reaffirmed a "buy" rating and issued a GBX 1,460 ($19.50) price objective on shares of Hiscox in a research note on Thursday, July 3rd.

Hiscox Trading Down 3.3%

The stock has a market capitalization of £5.74 billion, a P/E ratio of 8.18, a price-to-earnings-growth ratio of -2.30 and a beta of 0.65. The company has a 50-day moving average price of GBX 1,275.79 and a two-hundred day moving average price of GBX 1,181.98.

Hiscox declared that its board has initiated a share repurchase program on Wednesday, August 6th that allows the company to buyback $275.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 4.6% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are 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.

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