Royal Bank Of Canada Forecasts Strong Price Appreciation for The Hanover Insurance Group (NYSE:THG) Stock

Key Points

• Royal Bank of Canada raised its price target on The Hanover Insurance Group to $215 from $195 while keeping a sector perform rating, and the new target implies roughly flat to slightly lower upside from the previous close.
• Other analysts were mostly positive, with several hiking targets and ratings; MarketBeat says THG now has an average rating of Moderate Buy and an average price target of $218.29.
• The company posted strong quarterly results, including $5.25 EPS versus estimates of $4.14 and revenue of $1.70 billion versus expectations of $1.58 billion, and its board approved a $700 million share buyback plan.

The Hanover Insurance Group (NYSE:THG - Get Free Report) had its price objective boosted by equities research analysts at Royal Bank Of Canada from $195.00 to $215.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm presently has a "sector perform" rating on the insurance provider's stock. Royal Bank Of Canada's price target points to a potential downside of 0.31% from the company's previous close.

Several other research analysts also recently weighed in on the stock. Oppenheimer lifted their target price on shares of The Hanover Insurance Group from $205.00 to $220.00 and gave the stock an "outperform" rating in a research report on Thursday, May 21st. BMO Capital Markets lowered shares of The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and raised their price objective for the stock from $194.00 to $203.00 in a research note on Tuesday, May 19th. Citizens Jmp lifted their price objective on shares of The Hanover Insurance Group from $205.00 to $225.00 and gave the stock a "market outperform" rating in a research report on Friday. Keefe, Bruyette & Woods restated a "market perform" rating and issued a $220.00 target price (up from $211.00) on shares of The Hanover Insurance Group in a report on Wednesday, July 8th. Finally, Weiss Ratings raised The Hanover Insurance Group from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $218.29.

The Hanover Insurance Group Price Performance

Shares of NYSE THG traded up $1.68 during trading on Monday, hitting $215.66. The company had a trading volume of 18,313 shares, compared to its average volume of 327,056. The Hanover Insurance Group has a 52 week low of $162.69 and a 52 week high of $225.29. The business's 50-day moving average is $198.76 and its 200 day moving average is $183.86. The company has a market cap of $7.55 billion, a P/E ratio of 10.87 and a beta of 0.28. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.37 and a current ratio of 0.37.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share for the quarter, beating analysts' consensus estimates of $4.14 by $1.11. The business had revenue of $1.70 billion during the quarter, compared to analyst estimates of $1.58 billion. The Hanover Insurance Group had a return on equity of 21.55% and a net margin of 10.77%.The Hanover Insurance Group's revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter last year, the company posted $3.87 EPS. Equities research analysts predict that The Hanover Insurance Group will post 18.38 earnings per share for the current fiscal year.

The Hanover Insurance Group declared that its Board of Directors has approved a share buyback plan on Wednesday, May 13th that authorizes the company to buyback $700.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to repurchase up to 10.6% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Insider Transactions at The Hanover Insurance Group

In other The Hanover Insurance Group news, Director Cynthia Egan sold 3,400 shares of the company's stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $188.50, for a total value of $640,900.00. Following the transaction, the director owned 9,359 shares in the company, valued at approximately $1,764,171.50. This represents a 26.65% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Francisco Aristeguieta sold 1,000 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $195.37, for a total transaction of $195,370.00. Following the completion of the sale, the director owned 4,053 shares of the company's stock, valued at approximately $791,834.61. The trade was a 19.79% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 29,508 shares of company stock worth $5,704,651. 2.80% of the stock is owned by company insiders.

Institutional Trading of The Hanover Insurance Group

A number of institutional investors have recently bought and sold shares of THG. JPL Wealth Management LLC purchased a new stake in shares of The Hanover Insurance Group during the 3rd quarter worth about $26,000. Community Bank N.A. bought a new stake in shares of The Hanover Insurance Group in the 3rd quarter valued at approximately $27,000. McMillan Office Inc. bought a new stake in shares of The Hanover Insurance Group in the 4th quarter valued at approximately $31,000. Entrust Financial LLC acquired a new position in The Hanover Insurance Group in the fourth quarter worth approximately $33,000. Finally, Root Financial Partners LLC increased its holdings in The Hanover Insurance Group by 69.3% in the first quarter. Root Financial Partners LLC now owns 237 shares of the insurance provider's stock worth $41,000 after buying an additional 97 shares during the last quarter. Institutional investors and hedge funds own 86.61% of the company's stock.

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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