The Hanover Insurance Group (NYSE:THG) Given New $185.00 Price Target at Morgan Stanley

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 - Free Report) had its target price hoisted by Morgan Stanley from $170.00 to $185.00 in a research note released on Friday morning,Benzinga reports. The firm currently has an equal weight rating on the insurance provider's stock.

Other analysts also recently issued research reports about the stock. Citigroup reaffirmed an "outperform" rating on shares of The Hanover Insurance Group in a report on Thursday, July 31st. Keefe, Bruyette & Woods raised shares of The Hanover Insurance Group from a "market perform" rating to an "outperform" rating and set a $188.00 target price for the company in a research report on Wednesday, July 9th. 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. Finally, JMP Securities set a $205.00 target price on shares of The Hanover Insurance Group in a research note on Thursday, July 31st. Four investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $185.13.

The Hanover Insurance Group Stock Down 0.2%

THG stock traded down $0.30 during midday trading on Friday, hitting $171.09. The company's stock had a trading volume of 175,565 shares, compared to its average volume of 252,639. The firm's 50-day moving average is $168.27 and its 200-day moving average is $165.33. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 0.11. The Hanover Insurance Group has a 12 month low of $130.60 and a 12 month high of $178.68. The company has a market cap of $6.14 billion, a PE ratio of 11.26 and a beta of 0.45.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The insurance provider reported $4.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.07 by $1.28. The Hanover Insurance Group had a return on equity of 20.24% and a net margin of 8.67%. The firm had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same period in the prior year, the company posted $1.88 earnings per share. The company's quarterly revenue was up 3.1% on a year-over-year basis. On average, equities research analysts forecast that The Hanover Insurance Group will post 14.37 earnings per share for the current fiscal year.

The Hanover Insurance Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, June 27th. Investors of record on Friday, June 13th were issued a $0.90 dividend. This represents a $3.60 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend was Friday, June 13th. The Hanover Insurance Group's dividend payout ratio (DPR) is currently 23.70%.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Truist Financial Corp lifted its holdings in The Hanover Insurance Group by 2.8% during the second quarter. Truist Financial Corp now owns 2,255 shares of the insurance provider's stock valued at $383,000 after purchasing an additional 62 shares in the last quarter. CIBC Private Wealth Group LLC raised its position in shares of The Hanover Insurance Group by 0.9% during the 4th quarter. CIBC Private Wealth Group LLC now owns 7,163 shares of the insurance provider's stock valued at $1,092,000 after purchasing an additional 65 shares during the period. HM Payson & Co. lifted its stake in shares of The Hanover Insurance Group by 6.7% during the 1st quarter. HM Payson & Co. now owns 1,063 shares of the insurance provider's stock valued at $185,000 after buying an additional 67 shares in the last quarter. Evergreen Capital Management LLC boosted its holdings in The Hanover Insurance Group by 3.8% in the 1st quarter. Evergreen Capital Management LLC now owns 1,811 shares of the insurance provider's stock worth $315,000 after buying an additional 67 shares during the period. Finally, UMB Bank n.a. boosted its holdings in The Hanover Insurance Group by 20.3% in the 2nd quarter. UMB Bank n.a. now owns 468 shares of the insurance provider's stock worth $79,000 after buying an additional 79 shares during the period. 86.61% of the stock is currently 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.