The Hanover Insurance Group, Inc. (NYSE:THG) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts remain bullish on THG, with The Hanover Insurance Group carrying a consensus rating of “Moderate Buy” from eight analysts. The average 12-month price target is $203.60.
• Recent earnings beat expectations, as the company reported $5.25 EPS versus the $4.14 estimate and revenue of $1.70 billion, above forecasts. It also posted strong profitability metrics, including a 21.55% return on equity.
• Capital return and ownership activity stand out: Hanover authorized a $700 million share repurchase plan, while insiders have recently sold shares and institutions continue to hold a large majority of the stock, at 86.61%.

Shares of The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the eight ratings firms that are presently covering the company, Marketbeat.com reports. Two analysts have rated the stock with a hold recommendation, five have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $203.60.

Several research analysts have weighed in on THG shares. Keefe, Bruyette & Woods boosted their price objective on The Hanover Insurance Group from $208.00 to $211.00 and gave the stock an "outperform" rating in a research report on Thursday, May 7th. Citigroup reissued an "outperform" rating on shares of The Hanover Insurance Group in a research report on Thursday, April 30th. Citizens Jmp boosted their price objective on The Hanover Insurance Group from $200.00 to $205.00 and gave the stock a "market outperform" rating in a research report on Thursday, April 30th. Wall Street Zen cut The Hanover Insurance Group from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Finally, Zacks Research raised The Hanover Insurance Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 4th.

Insider Activity

In other news, EVP Denise Lowsley sold 4,175 shares of the company's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $191.73, for a total transaction of $800,472.75. Following the transaction, the executive vice president owned 3,883 shares of the company's stock, valued at $744,487.59. This represents a 51.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Cynthia Egan sold 3,400 shares of the company's stock in a transaction 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 directly owned 9,359 shares in the company, valued at $1,764,171.50. This represents a 26.65% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 9,837 shares of company stock valued at $1,858,577 in the last 90 days. Insiders own 2.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Norges Bank bought a new stake in shares of The Hanover Insurance Group during the 4th quarter valued at $83,817,000. Alliancebernstein L.P. raised its stake in shares of The Hanover Insurance Group by 36.1% during the 2nd quarter. Alliancebernstein L.P. now owns 1,280,418 shares of the insurance provider's stock valued at $217,505,000 after purchasing an additional 339,896 shares during the period. AQR Capital Management LLC raised its stake in shares of The Hanover Insurance Group by 37.8% during the 3rd quarter. AQR Capital Management LLC now owns 763,431 shares of the insurance provider's stock valued at $137,967,000 after purchasing an additional 209,616 shares during the period. Invesco Ltd. raised its stake in shares of The Hanover Insurance Group by 44.1% during the 4th quarter. Invesco Ltd. now owns 646,910 shares of the insurance provider's stock valued at $118,236,000 after purchasing an additional 197,930 shares during the period. Finally, Balyasny Asset Management L.P. raised its stake in shares of The Hanover Insurance Group by 206.0% during the 3rd quarter. Balyasny Asset Management L.P. now owns 292,121 shares of the insurance provider's stock valued at $53,058,000 after purchasing an additional 196,655 shares during the period. Hedge funds and other institutional investors own 86.61% of the company's stock.

The Hanover Insurance Group Stock Up 0.1%

THG stock opened at $194.83 on Monday. The stock's fifty day simple moving average is $178.36 and its two-hundred day simple moving average is $178.00. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 0.22. The Hanover Insurance Group has a 1-year low of $160.70 and a 1-year high of $195.74. The stock has a market cap of $6.82 billion, a P/E ratio of 9.81 and a beta of 0.31.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share for the quarter, topping the consensus estimate of $4.14 by $1.11. The Hanover Insurance Group had a return on equity of 21.55% and a net margin of 10.77%.The business had revenue of $1.70 billion for the quarter, compared to analysts' expectations of $1.58 billion. During the same quarter in the previous year, the firm earned $3.87 earnings per share. The business's revenue was up 6.1% on a year-over-year basis. Analysts expect that The Hanover Insurance Group will post 18.45 EPS for the current year.

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

The Hanover Insurance Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, March 27th. Stockholders of record on Friday, March 13th were given a dividend of $0.95 per share. This represents a $3.80 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Friday, March 13th. The Hanover Insurance Group's dividend payout ratio is currently 19.12%.

The Hanover Insurance Group Company Profile

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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