Insider Selling: The Hanover Insurance Group (NYSE:THG) Director Sells 3,400 Shares of Stock

Key Points

• Insider sale: Director Cynthia Egan sold 3,400 shares at an average price of $188.50 for $640,900, reducing her stake by 26.65% to 9,359 shares, according to an SEC filing.
• Quarterly outperformance: Hanover reported Q1 EPS of $5.25 versus $4.14 expected and revenue of $1.70B versus $1.58B expected, with a 10.77% net margin and 21.55% ROE; analysts forecast ~16.92 EPS for the fiscal year.
• Market reaction and outlook: Shares slipped about 2% to $183.07 (market cap $6.44B, P/E 9.21) while Wall Street consensus is a "Moderate Buy" with a $203 target and the stock yields ~2.1% (annualized dividend $3.80).

The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) Director Cynthia Egan sold 3,400 shares of the business's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $188.50, for a total transaction of $640,900.00. Following the sale, the director directly owned 9,359 shares in the company, valued at $1,764,171.50. The trade was a 26.65% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.

The Hanover Insurance Group Stock Down 2.0%

The Hanover Insurance Group stock traded down $3.78 during trading hours on Monday, hitting $183.07. The stock had a trading volume of 310,908 shares, compared to its average volume of 334,618. The company has a quick ratio of 0.37, a current ratio of 0.37 and a debt-to-equity ratio of 0.22. The stock has a market capitalization of $6.44 billion, a P/E ratio of 9.21 and a beta of 0.31. The Hanover Insurance Group, Inc. has a 12-month low of $160.70 and a 12-month high of $191.66. The stock's 50-day moving average price is $176.32 and its 200-day moving average price is $176.98.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last issued its earnings results on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.14 by $1.11. The business had revenue of $1.70 billion during the quarter, compared to analysts' expectations of $1.58 billion. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%. The business's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period in the previous year, the company earned $3.87 earnings per share. Equities research analysts anticipate that The Hanover Insurance Group, Inc. will post 16.92 EPS for the current fiscal year.

The Hanover Insurance Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Friday, March 13th were issued a $0.95 dividend. The ex-dividend date of this dividend was Friday, March 13th. This represents a $3.80 annualized dividend and a yield of 2.1%. The Hanover Insurance Group's payout ratio is 19.12%.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in THG. JPL Wealth Management LLC purchased a new position in shares of The Hanover Insurance Group during the third quarter valued at approximately $26,000. Community Bank N.A. purchased a new stake in The Hanover Insurance Group during the third quarter valued at approximately $27,000. McMillan Office Inc. purchased a new stake in The Hanover Insurance Group during the fourth quarter valued at approximately $31,000. Entrust Financial LLC purchased a new stake in The Hanover Insurance Group during the fourth quarter valued at approximately $33,000. Finally, Clearstead Advisors LLC increased its holdings in The Hanover Insurance Group by 300.0% during the third quarter. Clearstead Advisors LLC now owns 200 shares of the insurance provider's stock valued at $36,000 after buying an additional 150 shares during the last quarter. 86.61% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts have issued reports on THG shares. Morgan Stanley set a $195.00 target price on shares of The Hanover Insurance Group in a report on Friday. Citizens Jmp lifted their target price on shares of The Hanover Insurance Group from $200.00 to $205.00 and gave the stock a "market outperform" rating in a report on Thursday. Wall Street Zen cut shares of The Hanover Insurance Group from a "buy" rating to a "hold" rating in a report on Saturday, February 28th. Citigroup reaffirmed an "outperform" rating on shares of The Hanover Insurance Group in a report on Thursday. Finally, Keefe, Bruyette & Woods lifted their target price on shares of The Hanover Insurance Group from $207.00 to $208.00 and gave the stock an "outperform" rating in a report on Wednesday, February 25th. Five equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, The Hanover Insurance Group currently has a consensus rating of "Moderate Buy" and a consensus target price of $203.00.

About The Hanover Insurance Group

The Hanover Insurance Group, Inc NYSE: THG is a property and casualty insurance company that provides a range of commercial and personal insurance products. Through its subsidiary companies, Hanover offers coverage for businesses of all sizes, including workers' compensation, general liability, commercial auto, and professional liability. On the personal lines side, the company underwrites homeowners, personal auto, flood, and umbrella policies designed to meet the needs of individuals and families.

In addition to its core commercial and personal insurance offerings, Hanover maintains a specialty arm that focuses on niche markets through tailored product solutions.

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