Hiscox (LON:HSX) Shares Cross Above Two Hundred Day Moving Average - What's Next?

Key Points

• Hiscox Ltd shares have crossed above their two hundred day moving average of GBX 1,230.96, indicating potential upward momentum.
• The company has initiated a stock repurchase plan authorizing up to $275 million, which usually signals that the board believes the stock is undervalued.
• Analysts maintain a consensus rating of "Moderate Buy" for Hiscox with an average target price of GBX 1,480, indicating positive sentiment in the market.

Shares of Hiscox Ltd (LON:HSX - Get Free Report) passed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of GBX 1,230.96 ($16.58) and traded as high as GBX 1,312 ($17.67). Hiscox shares last traded at GBX 1,306 ($17.59), with a volume of 1,326,467 shares.

Analysts Set New Price Targets

HSX has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. reissued an "overweight" rating on shares of Hiscox in a report on Friday, August 1st. Berenberg Bank upped their target price on Hiscox from GBX 1,450 to GBX 1,580 and gave the stock a "buy" rating in a research report on Thursday, August 7th. Peel Hunt restated a "buy" rating and issued a GBX 1,460 target price on shares of Hiscox in a research report on Thursday, July 3rd. Finally, Royal Bank Of Canada restated a "sector perform" rating and issued a GBX 1,400 target price on shares of Hiscox in a research report on Tuesday, September 2nd. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, Hiscox has an average rating of "Moderate Buy" and an average target price of GBX 1,480.

Hiscox Trading Up 0.8%

The business has a 50-day moving average price of GBX 1,304.01 and a 200 day moving average price of GBX 1,233.60. The company has a market cap of £4.40 billion, a price-to-earnings ratio of 771.85, a P/E/G ratio of -2.30 and a beta of 0.65.

Hiscox declared that its board has authorized a share buyback program on Wednesday, August 6th that authorizes the company to repurchase $275.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 4.6% of its shares through open market purchases. Shares repurchase programs are typically a sign 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.