The Hanover Insurance Group (NYSE:THG) Issues Earnings Results, Beats Estimates By $1.47 EPS

Key Points

• The Hanover Insurance Group reported quarterly EPS of $5.31, beating analysts’ consensus estimate of $3.84 by $1.47. The company posted a 10.77% net margin and 21.55% return on equity.
• Shares rose to $224.18, near their 52-week high of $225.29. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $218.29.
• The board authorized a $700 million share-buyback program, covering up to 10.6% of outstanding shares, while the company maintains a quarterly dividend of $0.95 per share.

The Hanover Insurance Group (NYSE:THG - Get Free Report) issued its quarterly earnings data on Tuesday. The insurance provider reported $5.31 EPS for the quarter, topping analysts' consensus estimates of $3.84 by $1.47, Zacks reports. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%.

The Hanover Insurance Group Stock Performance

Shares of NYSE THG traded up $4.66 during mid-day trading on Tuesday, hitting $224.18. 318,712 shares of the company were exchanged, compared to its average volume of 328,127. 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 stock has a 50 day simple moving average of $204.06 and a 200-day simple moving average of $186.25. The Hanover Insurance Group has a 1-year low of $164.85 and a 1-year high of $225.29. The firm has a market cap of $7.84 billion, a price-to-earnings ratio of 11.28 and a beta of 0.28.

The Hanover Insurance Group Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were paid a dividend of $0.95 per share. This represents a $3.80 annualized dividend and a dividend yield of 1.7%. The ex-dividend date was Friday, June 12th. The Hanover Insurance Group's dividend payout ratio is 19.12%.

Analyst Ratings Changes

Several analysts recently commented on the company. Citizens Jmp boosted their price target on The Hanover Insurance Group from $205.00 to $225.00 and gave the stock a "market outperform" rating in a research report on Friday, July 10th. Morgan Stanley lifted their price objective on The Hanover Insurance Group from $220.00 to $225.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 8th. Oppenheimer increased their price target on The Hanover Insurance Group from $205.00 to $220.00 and gave the company an "outperform" rating in a research report on Thursday, May 21st. Weiss Ratings upgraded shares of The Hanover Insurance Group from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Friday, May 22nd. Finally, Citigroup restated an "outperform" rating on shares of The Hanover Insurance Group in a research report on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, The Hanover Insurance Group has an average rating of "Moderate Buy" and an average target price of $218.29.

Insider Buying and Selling

In other news, EVP Dennis Francis Kerrigan sold 6,262 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $192.99, for a total transaction of $1,208,503.38. Following the completion of the transaction, the executive vice president directly owned 11,988 shares of the company's stock, valued at approximately $2,313,564.12. This represents a 34.31% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Cynthia Egan sold 3,400 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the director directly owned 9,359 shares of the company's stock, valued at $1,764,171.50. This represents a 26.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 29,508 shares of company stock worth $5,704,651 in the last ninety days. Insiders own 2.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Alliancebernstein L.P. lifted its position 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 acquiring an additional 339,896 shares during the period. AQR Capital Management LLC raised its holdings in The Hanover Insurance Group by 37.8% during the third quarter. AQR Capital Management LLC now owns 763,431 shares of the insurance provider's stock worth $137,967,000 after purchasing an additional 209,616 shares during the last quarter. Invesco Ltd. grew its holdings in The Hanover Insurance Group by 44.1% in the fourth 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 last quarter. Balyasny Asset Management L.P. increased its position in shares of The Hanover Insurance Group by 206.0% in the third quarter. Balyasny Asset Management L.P. now owns 292,121 shares of the insurance provider's stock valued at $53,058,000 after buying an additional 196,655 shares in the last quarter. Finally, Adage Capital Partners GP L.L.C. raised its stake in shares of The Hanover Insurance Group by 52.9% during the 2nd quarter. Adage Capital Partners GP L.L.C. now owns 558,000 shares of the insurance provider's stock worth $94,787,000 after buying an additional 193,000 shares during the last quarter. Institutional investors and hedge funds own 86.61% of the company's stock.

The Hanover Insurance Group announced that its board has approved a stock buyback program on Wednesday, May 13th that authorizes the company to buyback $700.00 million in shares. This buyback authorization authorizes the insurance provider to reacquire up to 10.6% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

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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