Hiscox (LON:HSX) Trading Up 9.4% - Here's What Happened

Key Points

• Hiscox Ltd experienced a notable stock price increase of 9.4%, trading as high as GBX 1,454 ($19.42) during mid-day trading.
• The company is implementing a $275 million share repurchase plan, allowing it to buy back up to 4.6% of its shares, which indicates a belief among directors that the stock is undervalued.
• Analyst ratings for Hiscox have been favorable, with multiple firms setting new price targets, including a "buy" rating and targets up to GBX 1,460 ($19.50).

Hiscox Ltd (LON:HSX - Get Free Report)'s stock price was up 9.4% during mid-day 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 changed hands 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).

Analysts Set New Price Targets

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

Hiscox Trading Up 9.4%

The firm has a market cap 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 company has a 50 day moving average of GBX 1,275.79 and a 200 day moving average of GBX 1,181.98.

Hiscox announced that its Board of Directors has approved a share 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 often a sign that the company's board of directors 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.

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