The Hanover Insurance Group (NYSE:THG) Hits New 12-Month High - Time to Buy?

Key Points

• The Hanover Insurance Group's stock reached a new 52-week high of $185.79, with last trading at $184.68, signaling strong market interest.
• Analysts have a consensus price target of $185.13, with seven recommending a Buy rating and four giving it a Hold rating.
• The company reported earnings per share of $4.35, exceeding estimates, contributing to a net margin of 8.67% for the quarter.

The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report)'s share price reached a new 52-week high on Tuesday . The stock traded as high as $185.79 and last traded at $184.68, with a volume of 167522 shares changing hands. The stock had previously closed at $183.75.

Wall Street Analyst Weigh In

THG has been the subject of several research reports. JMP Securities set a $205.00 target price on The Hanover Insurance Group in a research note on Thursday, July 31st. Morgan Stanley increased their target price on shares of The Hanover Insurance Group from $170.00 to $185.00 and gave the company an "equal weight" rating in a report on Friday, August 1st. Keefe, Bruyette & Woods raised shares of The Hanover Insurance Group from a "market perform" rating to an "outperform" rating and set a $188.00 price target for the company in a research note on Wednesday, July 9th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of The Hanover Insurance Group in a research note on Saturday, September 27th. Finally, Citigroup reissued an "outperform" rating on shares of The Hanover Insurance Group in a research note on Thursday, July 31st. Seven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, The Hanover Insurance Group currently has an average rating of "Moderate Buy" and a consensus price target of $185.13.

The Hanover Insurance Group Price Performance

The company has a market cap of $6.61 billion, a PE ratio of 12.16 and a beta of 0.44. The business has a 50 day moving average of $174.94 and a 200 day moving average of $169.50. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.37 and a quick ratio of 0.37.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last posted its earnings results on Wednesday, July 30th. The insurance provider reported $4.35 EPS for the quarter, topping the consensus estimate of $3.07 by $1.28. The Hanover Insurance Group had a net margin of 8.67% and a return on equity of 20.24%. The firm had revenue of $1.58 billion during the quarter, compared to analysts' expectations of $1.60 billion. During the same period last year, the company posted $1.88 EPS. The company's quarterly revenue was up 3.1% compared to the same quarter last year. As a group, research analysts predict that The Hanover Insurance Group, Inc. will post 14.37 EPS for the current year.

The Hanover Insurance Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, September 26th. Stockholders of record on Friday, September 12th were paid a $0.90 dividend. This represents a $3.60 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date was Friday, September 12th. The Hanover Insurance Group's dividend payout ratio (DPR) is presently 23.70%.

Hedge Funds Weigh In On The Hanover Insurance Group

A number of institutional investors have recently added to or reduced their stakes in THG. Vanguard Group Inc. grew its position in shares of The Hanover Insurance Group by 0.6% in the 1st quarter. Vanguard Group Inc. now owns 3,635,173 shares of the insurance provider's stock worth $632,338,000 after buying an additional 21,221 shares during the period. Alliancebernstein L.P. grew its holdings in The Hanover Insurance Group by 36.1% in the second quarter. Alliancebernstein L.P. now owns 1,280,418 shares of the insurance provider's stock worth $217,505,000 after purchasing an additional 339,896 shares during the period. Fuller & Thaler Asset Management Inc. increased its stake in shares of The Hanover Insurance Group by 45.1% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 907,760 shares of the insurance provider's stock valued at $157,905,000 after purchasing an additional 282,233 shares in the last quarter. Adage Capital Partners GP L.L.C. lifted its holdings in shares of The Hanover Insurance Group by 52.9% during the second quarter. Adage Capital Partners GP L.L.C. now owns 558,000 shares of the insurance provider's stock valued at $94,787,000 after purchasing an additional 193,000 shares during the last quarter. Finally, AQR Capital Management LLC boosted its position in shares of The Hanover Insurance Group by 21.0% in the 2nd quarter. AQR Capital Management LLC now owns 553,815 shares of the insurance provider's stock worth $93,190,000 after purchasing an additional 96,006 shares in the last quarter. Institutional investors own 86.61% of the company's stock.

The Hanover Insurance Group Company Profile

The Hanover Insurance Group, Inc, through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates through four segments: Core Commercial, Specialty, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, and other commercial lines coverage.

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