Stock Repurchase Program Authorized by Hiscox (LON:HSX) Board of Directors

Key Points

• Hiscox's Board of Directors has authorized a share buyback program to repurchase $275 million in outstanding shares, representing up to 4.6% of its stock.
• The company's stock price increased by 9.4% on the announcement, reaching GBX 1,379 ($18.42) during trading hours.
• Analysts have responded positively, with several firms maintaining or upgrading their ratings and target prices, reflecting confidence in Hiscox's market position.

Hiscox (LON:HSX - Get Free Report) declared that its Board of Directors has initiated a share buyback program on Wednesday, August 6th, RTT News reports. The company plans to repurchase $275.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 4.6% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board believes its shares are undervalued.

Hiscox Stock Up 9.4%

LON HSX traded up GBX 119 ($1.59) during trading hours on Wednesday, hitting GBX 1,379 ($18.42). 3,353,292 shares of the company were exchanged, compared to its average volume of 1,972,280. The company has a 50 day moving average of GBX 1,275.79 and a two-hundred day moving average of GBX 1,181.98. Hiscox has a 52-week low of GBX 1,008 ($13.47) and a 52-week high of GBX 1,454 ($19.42). The firm has a market cap of £5.94 billion, a price-to-earnings ratio of 8.46, a PEG ratio of -2.30 and a beta of 0.65.

Analyst Ratings Changes

Several analysts have recently issued reports on the stock. Berenberg Bank reiterated a "buy" rating and issued a GBX 1,450 ($19.37) target price on shares of Hiscox in a research note on Friday, July 25th. JPMorgan Chase & Co. restated an "overweight" rating on shares of Hiscox in a report on Friday, August 1st. Royal Bank Of Canada raised their price objective on Hiscox from GBX 1,125 ($15.03) to GBX 1,300 ($17.37) and gave the company a "sector perform" rating in a research report on Friday, July 18th. Finally, Peel Hunt reaffirmed a "buy" rating and issued a GBX 1,460 ($19.50) price target on shares of Hiscox in a research report on Thursday, July 3rd.

Hiscox Company Profile

Hiscox Ltd, through its subsidiaries, provides insurance and reinsurance services in the United Kingdom, Europe, the United States, and internationally. The company operates through four segments: Hiscox Retail, Hiscox London Market, Hiscox Re & ILS, and Corporate Centre. It offers commercial insurance for small-and medium-sized businesses; and personal lines cover, including high-value household, fine art, and luxury motor, as well as artwork, antiques, classic cars, jewelry, collectables, and other assets through brokers, partners, and direct-to-consumers.

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