The Hanover Insurance Group (NYSE:THG) Announces Earnings Results

Key Points

• Hanover beat expectations: Q1 EPS of $5.25 topped estimates of $4.22 by $1.03 and revenue was $1.70B versus $1.58B consensus, with revenue up 6.1% YoY and profitability metrics showing a 21.0% ROE and a 10.05% net margin.
• Dividend supports income investors: The company paid a quarterly dividend of $0.95 (annualized $3.80), implying a 2.1% yield and a payout ratio of about 20.9%.
• Mixed analyst views but overall positive: MarketBeat shows a consensus rating of "Moderate Buy" with an average target of $197, while individual firms have adjusted targets in the ~$190–$208 range and issued both Buy and Hold ratings.

The Hanover Insurance Group (NYSE:THG - Get Free Report) announced its earnings results on Wednesday. The insurance provider reported $5.25 earnings per share for the quarter, beating analysts' consensus estimates of $4.22 by $1.03, Zacks reports. The Hanover Insurance Group had a net margin of 10.05% and a return on equity of 21.00%. The business had revenue of $1.70 billion during the quarter, compared to the consensus estimate 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.

The Hanover Insurance Group Price Performance

Shares of THG opened at $177.89 on Thursday. The company has a market capitalization of $6.26 billion, a P/E ratio of 9.79 and a beta of 0.29. The company has a quick ratio of 0.44, a current ratio of 0.44 and a debt-to-equity ratio of 0.24. The firm has a 50 day moving average of $176.07 and a 200 day moving average of $176.90. The Hanover Insurance Group has a twelve month low of $160.70 and a twelve month high of $188.18.

The Hanover Insurance Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 27th. Stockholders of record on Friday, March 13th were issued a dividend of $0.95 per share. The ex-dividend date was Friday, March 13th. This represents a $3.80 dividend on an annualized basis and a dividend yield of 2.1%. The Hanover Insurance Group's dividend payout ratio is presently 20.91%.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on THG. Keefe, Bruyette & Woods boosted their price target on The Hanover Insurance Group from $207.00 to $208.00 and gave the stock an "outperform" rating in a research report on Wednesday, February 25th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of The Hanover Insurance Group in a research report on Monday, April 20th. Wall Street Zen cut The Hanover Insurance Group from a "buy" rating to a "hold" rating in a research note on Saturday, February 28th. Royal Bank Of Canada dropped their target price on The Hanover Insurance Group from $200.00 to $190.00 and set a "sector perform" rating on the stock in a report on Tuesday, April 7th. Finally, Morgan Stanley cut their target price on The Hanover Insurance Group from $194.00 to $190.00 and set an "equal weight" rating on the stock in a research note on Monday, April 6th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $197.00.

Insider Buying and Selling

In related news, EVP Richard W. Lavey sold 24,420 shares of the company's stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $178.92, for a total value of $4,369,226.40. Following the transaction, the executive vice president directly owned 32,174 shares of the company's stock, valued at approximately $5,756,572.08. This represents a 43.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Jane D. Carlin sold 1,200 shares of the 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 owned 2,423 shares in the company, valued at approximately $438,344.93. This represents a 33.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.80% of the stock is owned by insiders.

Institutional Investors Weigh In On The Hanover Insurance Group

Several institutional investors have recently modified their holdings of THG. Millennium Management LLC lifted its stake in The Hanover Insurance Group by 61.0% during the 1st 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% in the first quarter. NewEdge Advisors LLC now owns 751 shares of the insurance provider's stock worth $131,000 after acquiring an additional 706 shares during the period. Goldman Sachs Group Inc. grew its stake in shares of The Hanover Insurance Group by 21.6% in the first quarter. Goldman Sachs Group Inc. now owns 218,753 shares of the insurance provider's stock worth $38,052,000 after acquiring an additional 38,905 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of The Hanover Insurance Group by 6.4% during the first 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 during the last quarter. Finally, Invesco Ltd. raised its holdings in shares of The Hanover Insurance Group by 7.7% during the second 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 last quarter. 86.61% of the stock is owned by hedge funds and other institutional investors.

About The Hanover Insurance Group

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.