The Hanover Insurance Group (NYSE:THG) Sets New 1-Year High Following Analyst Upgrade

Key Points

• The Hanover Insurance Group reached a new 52-week high of $241.85 after Morgan Stanley raised its price target to $235, while maintaining an equal-weight rating. Analysts collectively rate the stock “Moderate Buy,” with an average price target of $235.
• The company reported quarterly adjusted earnings of $5.15 per share, exceeding the $4.62 consensus estimate, though revenue of $1.74 billion fell short of the $1.81 billion forecast.
• Hanover recently paid a quarterly dividend of $0.95 per share, equivalent to an annualized $3.80 dividend and a 1.6% yield. Insiders sold 9,655 shares worth approximately $2.15 million during the latest quarter.

The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report)'s share price reached a new 52-week high during trading on Friday after Morgan Stanley raised their price target on the stock from $230.00 to $235.00. Morgan Stanley currently has an equal weight rating on the stock. The Hanover Insurance Group traded as high as $241.85 and last traded at $241.3880, with a volume of 107,554 shares changing hands. The stock had previously closed at $235.12.

Other research analysts have also issued research reports about the stock. Zacks Research upgraded shares of The Hanover Insurance Group from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 5th. Citigroup restated a "market outperform" rating on shares of The Hanover Insurance Group in a research report on Thursday. Weiss Ratings upgraded The Hanover Insurance Group from a "buy (a)" rating to a "buy (a+)" rating in a research note on Thursday, October 8th. Citizens Jmp lifted their price target on shares of The Hanover Insurance Group from $240.00 to $250.00 and gave the company a "market outperform" rating in a research note on Thursday. Finally, Keefe, Bruyette & Woods upped their price target on shares of The Hanover Insurance Group from $222.00 to $232.00 and gave the stock a "market perform" rating in a research report on Friday, September 18th. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $235.00.

Insider Activity at The Hanover Insurance Group

In related news, Director Jane Carlin sold 1,000 shares of The Hanover Insurance Group stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $231.50, for a total transaction of $231,500.00. Following the completion of the sale, the director owned 2,270 shares in the company, valued at approximately $525,505. This trade represents a 30.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Dennis Kerrigan sold 6,551 shares of the firm's stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $220.79, for a total transaction of $1,446,395.29. Following the completion of the sale, the executive vice president directly owned 12,003 shares in the company, valued at $2,650,142.37. This represents a 35.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 9,655 shares of company stock worth $2,145,846 over the last quarter. Company insiders own 2.80% of the company's stock.

Institutional Trading of The Hanover Insurance Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Mather Group LLC. acquired a new position in The Hanover Insurance Group in the 3rd quarter valued at approximately $29,000. Clearstead Trust LLC bought a new position in shares of The Hanover Insurance Group in the second quarter worth about $36,000. Provenance Wealth Advisors LLC acquired a new position in shares of The Hanover Insurance Group during the third quarter worth approximately $37,000. Root Financial Partners LLC boosted its holdings in The Hanover Insurance Group by 69.3% in the 1st quarter. Root Financial Partners LLC now owns 237 shares of the insurance provider's stock valued at $41,000 after purchasing an additional 97 shares during the period. Finally, Elevation Wealth Partners LLC raised its position in shares of The Hanover Insurance Group by 106.4% during the third quarter. Elevation Wealth Partners LLC now owns 194 shares of the insurance provider's stock valued at $42,000 after buying an additional 100 shares during the last quarter. 86.61% of the stock is owned by institutional investors and hedge funds.

The Hanover Insurance Group Stock Performance

The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 0.22. The firm has a 50-day moving average of $226.06 and a 200 day moving average of $199.71. The stock has a market capitalization of $8.41 billion, a P/E ratio of 11.55 and a beta of 0.23.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The insurance provider reported $5.15 EPS for the quarter, topping analysts' consensus estimates of $4.62 by $0.53. The company had revenue of $1.74 billion for the quarter, compared to analyst estimates of $1.81 billion. The Hanover Insurance Group had a return on equity of 21.39% and a net margin of 10.97%. During the same quarter in the previous year, the firm earned $5.09 earnings per share. Research analysts anticipate that The Hanover Insurance Group, Inc. will post 20.35 EPS for the current fiscal year.

The Hanover Insurance Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 11th were issued a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend was Friday, September 11th. The Hanover Insurance Group's dividend payout ratio is currently 18.14%.

The Hanover Insurance Group Company Profile

The Hanover Insurance Group, Inc is a holding company that provides property and casualty insurance products and services through a network of independent agents. Its principal operating subsidiary is The Hanover Insurance Company, which traces its roots to 1852 and is headquartered in Worcester, Massachusetts.

The company offers personal insurance products such as automobile, homeowners, condominium, renters and umbrella coverage. Its commercial insurance business serves small and midsize businesses with products that include commercial property, general liability, commercial automobile, workers' compensation and other specialized coverages.

The Hanover also provides specialty insurance solutions for select industries and risks, including professional liability, management liability, marine and other niche commercial exposures.

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