The Hanover Insurance Group (NYSE:THG) Hits New 1-Year High - What's Next?

Key Points

• The Hanover Insurance Group (NYSE: THG) hit a new 52-week high of $193.32, reflecting strong recent momentum in the stock. The shares were last trading around $192.15.
• Wall Street analysts remain broadly positive, with several firms raising price targets and the consensus rating sitting at Moderate Buy. The average price target is $203.60, above the current trading level.
• The company reported strong quarterly results, beating EPS and revenue expectations, and recently announced a $700 million share repurchase program alongside a quarterly dividend that implies a 2.0% annualized yield.

Shares of The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) reached a new 52-week high during trading on Thursday . The stock traded as high as $193.32 and last traded at $192.1450, with a volume of 19265 shares changing hands. The stock had previously closed at $189.30.

Wall Street Analyst Weigh In

THG has been the topic of a number of analyst reports. Citizens Jmp lifted their price objective on shares of 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. Piper Sandler raised their target price on shares of The Hanover Insurance Group from $204.00 to $212.00 and gave the company an "overweight" rating in a research note on Friday, May 1st. Keefe, Bruyette & Woods lifted their price target on shares of The Hanover Insurance Group from $208.00 to $211.00 and gave the stock an "outperform" rating in a report on Thursday, May 7th. Morgan Stanley set a $195.00 price target on The Hanover Insurance Group in a research report on Friday, May 1st. Finally, Citigroup reissued an "outperform" rating on shares of The Hanover Insurance Group in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $203.60.

The Hanover Insurance Group Stock Up 1.1%

The firm has a market capitalization of $6.69 billion, a price-to-earnings ratio of 9.63 and a beta of 0.31. The company has a quick ratio of 0.37, a current ratio of 0.37 and a debt-to-equity ratio of 0.22. The company's 50 day moving average price is $177.80 and its 200 day moving average price is $177.73.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last released its earnings results on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share (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 for the quarter, compared to the consensus estimate of $1.58 billion. During the same period in the prior year, the firm earned $3.87 EPS. The firm's revenue was up 6.1% on a year-over-year basis. As a group, research analysts forecast that The Hanover Insurance Group, Inc. will post 18.45 earnings per share for the current fiscal year.

The Hanover Insurance Group Announces Dividend

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

The Hanover Insurance Group announced that its Board of Directors has approved a stock repurchase plan on Wednesday, May 13th that allows the company to buyback $700.00 million in shares. This buyback authorization allows the insurance provider to purchase up to 10.6% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Insider Transactions at The Hanover Insurance Group

In other The Hanover Insurance Group news, Director Jane D. Carlin sold 1,200 shares of the company's stock in a transaction on Friday, February 27th. The shares were sold at an average price of $180.91, for a total value of $217,092.00. Following the sale, the director directly owned 2,423 shares of the company's stock, valued at approximately $438,344.93. This represents a 33.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Denise Lowsley sold 1,062 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $188.43, for a total value of $200,112.66. Following the sale, the executive vice president directly owned 3,883 shares in the company, valued at $731,673.69. This represents a 21.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 5,662 shares of company stock worth $1,058,105 over the last 90 days. 2.80% of the stock is currently owned by company insiders.

Institutional Trading of The Hanover Insurance Group

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Millennium Management LLC lifted its holdings in The Hanover Insurance Group by 61.0% in the first quarter. Millennium Management LLC now owns 88,367 shares of the insurance provider's stock valued at $15,371,000 after acquiring an additional 33,495 shares during the period. NewEdge Advisors LLC grew its stake in shares of The Hanover Insurance Group by 1,568.9% during the 1st quarter. NewEdge Advisors LLC now owns 751 shares of the insurance provider's stock worth $131,000 after purchasing an additional 706 shares during the period. Goldman Sachs Group Inc. increased its holdings in shares of The Hanover Insurance Group by 21.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 218,753 shares of the insurance provider's stock valued at $38,052,000 after purchasing an additional 38,905 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of The Hanover Insurance Group by 6.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 129,031 shares of the insurance provider's stock valued at $22,445,000 after purchasing an additional 7,712 shares in the last quarter. Finally, Invesco Ltd. lifted its stake in shares of The Hanover Insurance Group by 7.7% in the 2nd quarter. Invesco Ltd. now owns 283,484 shares of the insurance provider's stock valued at $48,155,000 after purchasing an additional 20,294 shares during the period. 86.61% of the stock is owned by institutional investors and hedge funds.

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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