The Hanover Insurance Group (NYSE:THG) Price Target Raised to $220.00 at Oppenheimer

Key Points

• Oppenheimer raised its price target on The Hanover Insurance Group to $220 from $205 and kept an outperform rating, implying about 12.6% upside from the current share price.
• The company reported strong quarterly earnings, with EPS of $5.25 beating estimates by $1.11 and revenue of $1.70 billion topping forecasts, while revenue rose 6.1% year over year.
• The Hanover also announced a $700 million share buyback authorization, signaling management may believe the stock is undervalued; however, insiders have recently sold shares.

The Hanover Insurance Group (NYSE:THG - Get Free Report) had its price objective hoisted by research analysts at Oppenheimer from $205.00 to $220.00 in a research note issued on Thursday,Benzinga reports. The brokerage currently has an "outperform" rating on the insurance provider's stock. Oppenheimer's price target suggests a potential upside of 12.61% from the company's current price.

A number of other research firms have also weighed in on THG. Weiss Ratings raised shares of The Hanover Insurance Group from a "buy (b)" rating to a "buy (b+)" rating in a report on Friday, May 8th. Piper Sandler boosted their target price on shares of The Hanover Insurance Group from $204.00 to $212.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. Wall Street Zen lowered shares of The Hanover Insurance Group from a "buy" rating to a "hold" rating in a research note on Saturday, February 28th. Citizens Jmp upped their price objective on shares of The Hanover Insurance Group from $200.00 to $205.00 and gave the company a "market outperform" rating in a research note on Thursday, April 30th. Finally, Morgan Stanley set a $195.00 price objective on shares of The Hanover Insurance Group in a research note on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, The Hanover Insurance Group presently has a consensus rating of "Moderate Buy" and a consensus price target of $205.86.

The Hanover Insurance Group Price Performance

THG stock traded up $0.80 during trading on Thursday, reaching $195.36. 88,523 shares of the company were exchanged, compared to its average volume of 326,237. The Hanover Insurance Group has a twelve month low of $160.70 and a twelve month high of $199.59. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.37 and a quick ratio of 0.37. The company has a market capitalization of $6.84 billion, a price-to-earnings ratio of 9.83 and a beta of 0.31. The company has a 50-day moving average of $179.45 and a two-hundred day moving average of $178.55.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last posted its earnings results on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share for the quarter, topping analysts' consensus estimates of $4.14 by $1.11. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%. The firm had revenue of $1.70 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same period in the previous year, the firm posted $3.87 EPS. The company's revenue for the quarter was up 6.1% compared to the same quarter last year. As a group, equities analysts predict that The Hanover Insurance Group will post 18.45 earnings per share for the current fiscal year.

The Hanover Insurance Group declared that its Board of Directors has initiated a stock buyback program on Wednesday, May 13th that authorizes the company to buyback $700.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to purchase up to 10.6% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Insider Activity at The Hanover Insurance Group

In related news, CEO John C. Roche sold 5,251 shares of the stock in a transaction on Monday, May 18th. The shares were sold at an average price of $198.06, for a total transaction of $1,040,013.06. Following the transaction, the chief executive officer directly owned 141,011 shares of the company's stock, valued at $27,928,638.66. This represents a 3.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Cynthia Egan sold 3,400 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $188.50, for a total transaction of $640,900.00. Following the transaction, the director directly owned 9,359 shares in the company, valued at approximately $1,764,171.50. This represents a 26.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 15,088 shares of company stock valued at $2,898,590 in the last ninety days. Insiders own 2.80% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC raised its holdings in The Hanover Insurance Group by 5.5% during the first quarter. EverSource Wealth Advisors LLC now owns 1,127 shares of the insurance provider's stock worth $195,000 after buying an additional 59 shares during the last quarter. Crossmark Global Holdings Inc. raised its holdings in The Hanover Insurance Group by 3.5% during the fourth quarter. Crossmark Global Holdings Inc. now owns 1,880 shares of the insurance provider's stock worth $344,000 after buying an additional 64 shares during the last quarter. Ballentine Partners LLC raised its holdings in The Hanover Insurance Group by 3.4% during the fourth quarter. Ballentine Partners LLC now owns 2,026 shares of the insurance provider's stock worth $370,000 after buying an additional 66 shares during the last quarter. Public Employees Retirement System of Ohio raised its holdings in The Hanover Insurance Group by 0.6% during the third quarter. Public Employees Retirement System of Ohio now owns 12,020 shares of the insurance provider's stock worth $2,183,000 after buying an additional 66 shares during the last quarter. Finally, NorthCrest Asset Manangement LLC raised its holdings in The Hanover Insurance Group by 5.5% during the fourth quarter. NorthCrest Asset Manangement LLC now owns 1,294 shares of the insurance provider's stock worth $234,000 after buying an additional 68 shares during the last quarter. 86.61% of the stock is owned by 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.