Morgan Stanley Lowers The Hanover Insurance Group (NYSE:THG) Price Target to $190.00

Key Points

• Morgan Stanley cut its price target on The Hanover Insurance Group from $194 to $190 and kept an "equal weight" rating, implying about an 8.48% upside from the prior close.
• Analysts are mixed overall — the consensus is a "Moderate Buy" with an average price target of $199.50, while some firms (e.g., Keefe Bruyette & Woods) raised targets to $208 and others (Wall Street Zen) downgraded to hold.
• The stock traded around $175.15 (down ~0.5%), has a P/E of 9.59 and $6.16B market cap; recent results showed $5.46 EPS for the quarter and strong ROE (21%), but insiders have been selling (EVP sold ~24,420 shares for ~$4.37M) and institutions own ~86.6% of shares.

The Hanover Insurance Group (NYSE:THG - Get Free Report) had its price target decreased by Morgan Stanley from $194.00 to $190.00 in a report released on Monday,Benzinga reports. The firm presently has an "equal weight" rating on the insurance provider's stock. Morgan Stanley's price objective indicates a potential upside of 8.48% from the stock's previous close.

A number of other research analysts have also weighed in on the company. Wall Street Zen lowered The Hanover Insurance Group from a "buy" rating to a "hold" rating in a research note on Saturday, February 28th. Keefe, Bruyette & Woods upped their target price on The Hanover Insurance Group from $207.00 to $208.00 and gave the company an "outperform" rating in a research note on Wednesday, February 25th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of The Hanover Insurance Group in a research note on Wednesday, January 21st. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $199.50.

The Hanover Insurance Group Trading Down 0.5%

Shares of NYSE THG traded down $0.95 during midday trading on Monday, reaching $175.15. 17,150 shares of the stock were exchanged, compared to its average volume of 344,451. The stock has a 50 day moving average price of $174.09 and a 200-day moving average price of $176.95. The company has a current ratio of 0.44, a quick ratio of 0.44 and a debt-to-equity ratio of 0.24. The company has a market capitalization of $6.16 billion, a P/E ratio of 9.59 and a beta of 0.29. The Hanover Insurance Group has a 52-week low of $147.76 and a 52-week high of $188.18.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last announced its quarterly earnings data on Friday, February 20th. The insurance provider reported $5.46 earnings per share (EPS) for the quarter. The business had revenue of $1.67 billion for the quarter. The Hanover Insurance Group had a net margin of 10.05% and a return on equity of 21.00%. Equities research analysts expect that The Hanover Insurance Group will post 14.37 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, EVP Richard W. Lavey sold 24,420 shares of the firm's stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $178.92, for a total value of $4,369,226.40. Following the transaction, the executive vice president owned 32,174 shares of the company's stock, valued at approximately $5,756,572.08. This trade represents a 43.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Jane D. Carlin sold 1,200 shares of The Hanover Insurance Group stock in a transaction on Friday, February 27th. The shares were sold at an average price of $180.91, for a total transaction of $217,092.00. Following the transaction, the director owned 2,423 shares in the company, valued at $438,344.93. The trade was a 33.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 2.50% of the company's stock.

Institutional Trading of The Hanover Insurance Group

Several large investors have recently added to or reduced their stakes in THG. Hsbc Holdings PLC raised its position in The Hanover Insurance Group by 96.6% in the fourth quarter. Hsbc Holdings PLC now owns 29,787 shares of the insurance provider's stock valued at $5,470,000 after purchasing an additional 14,633 shares during the period. Rockefeller Capital Management L.P. boosted its position in shares of The Hanover Insurance Group by 21.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 1,277 shares of the insurance provider's stock worth $233,000 after buying an additional 227 shares during the period. World Investment Advisors grew its stake in shares of The Hanover Insurance Group by 8.2% in the fourth quarter. World Investment Advisors now owns 2,288 shares of the insurance provider's stock valued at $418,000 after buying an additional 173 shares in the last quarter. Corient Private Wealth LLC grew its stake in shares of The Hanover Insurance Group by 72.5% in the fourth quarter. Corient Private Wealth LLC now owns 5,795 shares of the insurance provider's stock valued at $1,059,000 after buying an additional 2,436 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd raised its holdings in shares of The Hanover Insurance Group by 3,650.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 900 shares of the insurance provider's stock valued at $164,000 after buying an additional 876 shares during the period. 86.61% of the stock is currently owned by institutional investors and hedge funds.

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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