Morgan Stanley Issues Positive Forecast for The Hanover Insurance Group (NYSE:THG) Stock Price

Key Points

• Morgan Stanley has increased its target price for The Hanover Insurance Group's stock from $170.00 to $185.00, suggesting a potential upside of 11.30% based on the stock's current price.
• The stock is currently rated as a "Moderate Buy" by analysts, with a consensus price target of $185.13, supported by multiple upgraded ratings from different research firms.
• Despite a recent decline of 3.2% in share price, The Hanover Insurance Group reported strong quarterly earnings of $4.35 per share, significantly exceeding analyst estimates.

The Hanover Insurance Group (NYSE:THG - Get Free Report) had its target price upped by Morgan Stanley from $170.00 to $185.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the insurance provider's stock. Morgan Stanley's price target would suggest a potential upside of 11.30% from the stock's current price.

Other research analysts have also issued research reports about the stock. Wall Street Zen upgraded shares of The Hanover Insurance Group from a "hold" rating to a "buy" rating in a research note on Wednesday, April 30th. Citigroup restated an "outperform" rating on shares of The Hanover Insurance Group in a research note on Thursday. JMP Securities set a $205.00 target price on shares of The Hanover Insurance Group in a research note on Thursday. Finally, Keefe, Bruyette & Woods upgraded shares of The Hanover Insurance Group from a "market perform" rating to an "outperform" rating and set a $188.00 target price on the stock in a research note on Wednesday, July 9th. Four analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $185.13.

The Hanover Insurance Group Trading Down 3.2%

Shares of NYSE:THG traded down $5.41 during mid-day trading on Friday, hitting $166.22. The stock had a trading volume of 65,814 shares, compared to its average volume of 251,167. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.38 and a current ratio of 0.38. The company has a market cap of $5.97 billion, a PE ratio of 10.97 and a beta of 0.44. The Hanover Insurance Group has a 12-month low of $130.60 and a 12-month high of $178.68. The company's 50 day moving average is $168.20 and its 200-day moving average is $165.02.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $4.35 earnings per share for the quarter, beating the consensus estimate of $3.07 by $1.28. The firm had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.60 billion. The Hanover Insurance Group had a net margin of 8.67% and a return on equity of 20.75%. The company's revenue for the quarter was up 3.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.88 EPS. On average, sell-side analysts predict that The Hanover Insurance Group will post 14.37 EPS for the current year.

Insider Activity at The Hanover Insurance Group

In related news, EVP Bryan J. Salvatore sold 10,526 shares of The Hanover Insurance Group stock in a transaction dated Wednesday, May 7th. The shares were sold at an average price of $166.60, for a total transaction of $1,753,631.60. Following the completion of the transaction, the executive vice president directly owned 25,864 shares of the company's stock, valued at $4,308,942.40. This trade represents a 28.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 2.50% of the company's stock.

Hedge Funds Weigh In On The Hanover Insurance Group

Institutional investors have recently added to or reduced their stakes in the company. Johnson Investment Counsel Inc. bought a new stake in shares of The Hanover Insurance Group during the first quarter valued at approximately $209,000. Principal Financial Group Inc. boosted its holdings in shares of The Hanover Insurance Group by 0.3% in the first quarter. Principal Financial Group Inc. now owns 82,886 shares of the insurance provider's stock valued at $14,418,000 after buying an additional 252 shares during the period. Envestnet Asset Management Inc. boosted its holdings in shares of The Hanover Insurance Group by 7.3% in the first quarter. Envestnet Asset Management Inc. now owns 112,632 shares of the insurance provider's stock valued at $19,592,000 after buying an additional 7,661 shares during the period. Wealth Enhancement Advisory Services LLC lifted its position in shares of The Hanover Insurance Group by 31.4% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 8,351 shares of the insurance provider's stock worth $1,292,000 after purchasing an additional 1,996 shares in the last quarter. Finally, Wealthquest Corp bought a new stake in shares of The Hanover Insurance Group in the first quarter worth $869,000. 86.61% of the stock is owned by institutional investors.

About The Hanover Insurance Group

The Hanover Insurance Group, Inc, through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates through four segments: Core Commercial, Specialty, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, and other commercial lines coverage.

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