The Hanover Insurance Group, Inc. (NYSE:THG) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• The Hanover Insurance Group has a consensus analyst rating of “Moderate Buy”, with an average 1-year price target of $207.
• The company reported strong quarterly results, posting EPS of $5.25 versus the $4.14 estimate and revenue of $1.70 billion, both ahead of expectations.
• Hanover recently announced a quarterly dividend of $0.95 per share and a $700 million stock buyback program, while insiders have also been selling shares.

Shares of The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the ten research firms that are currently covering the stock, Marketbeat reports. Three equities research analysts have rated the stock with a hold recommendation, five have issued a buy recommendation and two have given a strong buy recommendation to the company. The average 1-year target price among brokers that have covered the stock in the last year is $207.00.

Several research firms recently commented on THG. Wall Street Zen cut The Hanover Insurance Group from a "buy" rating to a "hold" rating in a report on Saturday, February 28th. Zacks Research raised The Hanover Insurance Group from a "hold" rating to a "strong-buy" rating in a report on Monday, May 4th. Morgan Stanley set a $195.00 price target on The Hanover Insurance Group in a report on Friday, May 1st. Keefe, Bruyette & Woods increased their price target on The Hanover Insurance Group from $208.00 to $211.00 and gave the company an "outperform" rating in a report on Thursday, May 7th. Finally, Citizens Jmp increased 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.

The Hanover Insurance Group Price Performance

NYSE:THG opened at $196.43 on Friday. The Hanover Insurance Group has a one year low of $160.70 and a one year high of $199.59. 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 stock has a market cap of $6.87 billion, a PE ratio of 9.89 and a beta of 0.30. The stock has a 50 day moving average price of $185.67 and a 200 day moving average price of $180.00.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The insurance provider reported $5.25 EPS for the quarter, beating 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 firm had revenue of $1.70 billion during the quarter, compared to analysts' expectations of $1.58 billion. During the same quarter last year, the firm earned $3.87 earnings per share. The business's revenue for the quarter was up 6.1% on a year-over-year basis. Equities research analysts expect that The Hanover Insurance Group will post 18.36 EPS for the current fiscal year.

The Hanover Insurance Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, June 12th will be paid a dividend of $0.95 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $3.80 annualized dividend and a yield of 1.9%. The Hanover Insurance Group's dividend payout ratio (DPR) is 19.12%.

The Hanover Insurance Group announced that its board has initiated a stock repurchase program on Wednesday, May 13th that allows the company to buyback $700.00 million in shares. This buyback authorization allows the insurance provider to buy up to 10.6% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Insider Activity at The Hanover Insurance Group

In other The Hanover Insurance Group news, CEO John C. Roche sold 8,358 shares of the firm's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $193.74, for a total transaction of $1,619,278.92. Following the completion of the sale, the chief executive officer owned 141,011 shares of the company's stock, valued at $27,319,471.14. This trade represents a 5.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Dennis Francis Kerrigan sold 6,262 shares of the firm's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $192.99, for a total value of $1,208,503.38. Following the sale, the executive vice president directly owned 11,988 shares of the company's stock, valued at approximately $2,313,564.12. This trade represents a 34.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 29,508 shares of company stock valued at $5,704,651 over the last 90 days. Corporate insiders own 2.80% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Western Wealth Management LLC acquired a new stake in shares of The Hanover Insurance Group in the first quarter valued at $188,000. Bank of America Corp DE grew its stake in shares of The Hanover Insurance Group by 10.1% in the first quarter. Bank of America Corp DE now owns 251,130 shares of the insurance provider's stock valued at $43,533,000 after buying an additional 22,978 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of The Hanover Insurance Group by 5.5% in the first quarter. EverSource Wealth Advisors LLC now owns 1,127 shares of the insurance provider's stock valued at $195,000 after buying an additional 59 shares in the last quarter. California State Teachers Retirement System grew its stake in shares of The Hanover Insurance Group by 30.7% in the first quarter. California State Teachers Retirement System now owns 43,399 shares of the insurance provider's stock valued at $7,523,000 after buying an additional 10,188 shares in the last quarter. Finally, Royal Bank of Canada grew its stake in shares of The Hanover Insurance Group by 6.2% in the first quarter. Royal Bank of Canada now owns 11,471 shares of the insurance provider's stock valued at $1,988,000 after buying an additional 667 shares in the last quarter. 86.61% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.