Hiscox (LON:HSX) Trading 9.4% Higher - Still a Buy?

Key Points

• Hiscox Ltd shares rose by 9.4% during trading, reaching GBX 1,454 ($19.42), significantly higher than the previous close of GBX 1,260 ($16.83).
• Brokerages have expressed positive outlooks on Hiscox, with ratings including a "buy" from Berenberg Bank and a target price of GBX 1,450 ($19.37).
• The company has authorized a $275 million stock repurchase plan, indicating management believes the shares are undervalued.

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

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on HSX. JPMorgan Chase & Co. reissued an "overweight" rating on shares of Hiscox in a research report on Friday, August 1st. Royal Bank Of Canada lifted their target price on shares of Hiscox from GBX 1,125 ($15.03) to GBX 1,300 ($17.37) and gave the company a "sector perform" rating in a report on Friday, July 18th. Berenberg Bank reaffirmed a "buy" rating and issued a GBX 1,450 ($19.37) target price on shares of Hiscox in a report on Friday, July 25th. Finally, Peel Hunt reissued a "buy" rating and set a GBX 1,460 ($19.50) price objective on shares of Hiscox in a report on Thursday, July 3rd.

Hiscox Stock Performance

The stock has a market capitalization of £5.94 billion, a price-to-earnings ratio of 8.46, a P/E/G ratio of -2.30 and a beta of 0.65. The firm's fifty day simple moving average is GBX 1,275.79 and its 200 day simple moving average is GBX 1,181.98.

Hiscox declared that its board has authorized a stock repurchase plan on Wednesday, August 6th that permits the company to repurchase $275.00 million in shares. This repurchase authorization permits the company to repurchase up to 4.6% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management 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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