The Hanover Insurance Group (NYSE:THG) Posts Earnings Results, Beats Expectations By $0.92 EPS

Key Points

• Q1 earnings beat: The Hanover reported EPS of $5.25, beating estimates by $0.92, with revenue of $1.70 billion (vs. $1.58B expected), a 6.1% year-over-year revenue increase, a 21.0% ROE and a 10.05% net margin.
• Valuation and payout: Shares traded around $177.89 (market cap $6.26B) with a P/E of 9.79, and the company pays a quarterly dividend of $0.95 ($3.80 annualized, ~2.1% yield) with a 20.9% payout ratio.
• Insider sales and mixed analyst views: Executives (including an EVP) sold sizeable stakes recently, while analysts remain split—four Buys and two Holds—with an average target of $197 and several firms adjusting price objectives.

The Hanover Insurance Group (NYSE:THG - Get Free Report) announced its earnings results on Wednesday. The insurance provider reported $5.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.33 by $0.92, Zacks reports. The firm had revenue of $1.70 billion during the quarter, compared to analysts' expectations of $1.58 billion. The Hanover Insurance Group had a return on equity of 21.00% and a net margin of 10.05%.The business's revenue was up 6.1% on a year-over-year basis. During the same period in the prior year, the firm earned $3.87 EPS.

The Hanover Insurance Group Price Performance

Shares of THG traded down $2.82 during mid-day trading on Wednesday, hitting $177.89. The company's stock had a trading volume of 283,309 shares, compared to its average volume of 332,453. The company has a current ratio of 0.44, a quick ratio of 0.44 and a debt-to-equity ratio of 0.24. The firm has a 50-day simple moving average of $176.07 and a 200 day simple moving average of $176.90. The firm has a market capitalization of $6.26 billion, a P/E ratio of 9.79 and a beta of 0.29. The Hanover Insurance Group has a 1-year low of $160.70 and a 1-year high of $188.18.

The Hanover Insurance Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, March 27th. Stockholders of record on Friday, March 13th were issued a $0.95 dividend. This represents a $3.80 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend was Friday, March 13th. The Hanover Insurance Group's dividend payout ratio (DPR) is currently 20.91%.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on THG. Morgan Stanley decreased their price objective on The Hanover Insurance Group from $194.00 to $190.00 and set an "equal weight" rating for the company in a research report on Monday, April 6th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of The Hanover Insurance Group in a research report on Monday, April 20th. Keefe, Bruyette & Woods increased their price objective 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. Wall Street Zen cut The Hanover Insurance Group from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Finally, Royal Bank Of Canada decreased their price objective on The Hanover Insurance Group from $200.00 to $190.00 and set a "sector perform" rating for the company in a research report on Tuesday, April 7th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, The Hanover Insurance Group has an average rating of "Moderate Buy" and an average target price of $197.00.

Insiders Place Their Bets

In related news, Director Jane D. Carlin sold 1,200 shares of the company's stock in a transaction on Friday, February 27th. The stock was sold at an average price of $180.91, for a total transaction of $217,092.00. Following the transaction, the director owned 2,423 shares of the company's stock, valued at $438,344.93. This represents a 33.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Richard W. Lavey sold 24,420 shares of the company's stock in a transaction 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 in the company, valued at $5,756,572.08. This represents a 43.15% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 2.80% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Invesco Ltd. grew its holdings in The Hanover Insurance Group by 44.1% during the fourth quarter. Invesco Ltd. now owns 646,910 shares of the insurance provider's stock worth $118,236,000 after acquiring an additional 197,930 shares during the period. Corient Private Wealth LLC grew its holdings in The Hanover Insurance Group by 126.6% during the fourth quarter. Corient Private Wealth LLC now owns 7,613 shares of the insurance provider's stock worth $1,391,000 after acquiring an additional 4,254 shares during the period. Mercer Global Advisors Inc. ADV grew its holdings in The Hanover Insurance Group by 29.8% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 10,231 shares of the insurance provider's stock worth $1,870,000 after acquiring an additional 2,348 shares during the period. EP Wealth Advisors LLC acquired a new position in The Hanover Insurance Group during the fourth quarter worth $321,000. Finally, Mackenzie Financial Corp increased its stake in The Hanover Insurance Group by 7.4% in the 4th quarter. Mackenzie Financial Corp now owns 7,272 shares of the insurance provider's stock valued at $1,337,000 after purchasing an additional 498 shares in the last quarter. Institutional investors and hedge funds own 86.61% of the company's stock.

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.

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