The Hanover Insurance Group (NYSE:THG) Price Target Raised to $225.00 at Citizens Jmp

Key Points

• Citizens JMP raised its price target on The Hanover Insurance Group to $225 from $205 and kept an “market outperform” rating, implying about 4.5% upside from the prior close.
• The company reported strong first-quarter results, with EPS of $5.25 versus $4.14 expected and revenue of $1.70 billion, while also topping year-ago performance.
• The Hanover authorized a $700 million stock buyback covering up to 10.6% of shares, a move often viewed as a signal that management believes the stock is undervalued.

The Hanover Insurance Group (NYSE:THG - Get Free Report) had its price objective upped by equities research analysts at Citizens Jmp from $205.00 to $225.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage presently has a "market outperform" rating on the insurance provider's stock. Citizens Jmp's price objective indicates a potential upside of 4.54% from the company's previous close.

A number of other brokerages have also recently commented on THG. Weiss Ratings raised The Hanover Insurance Group from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Friday, May 22nd. Royal Bank Of Canada raised their target price on shares of The Hanover Insurance Group from $190.00 to $195.00 and gave the stock a "sector perform" rating in a report on Friday, May 1st. Zacks Research downgraded shares of The Hanover Insurance Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. Citigroup reissued an "outperform" rating on shares of The Hanover Insurance Group in a research report on Friday. Finally, Morgan Stanley boosted their price objective on shares of The Hanover Insurance Group from $220.00 to $225.00 and gave the company an "equal weight" rating in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, The Hanover Insurance Group currently has a consensus rating of "Moderate Buy" and an average price target of $215.43.

The Hanover Insurance Group Trading Up 0.4%

Shares of THG opened at $215.22 on Friday. The Hanover Insurance Group has a fifty-two week low of $162.66 and a fifty-two week high of $225.29. The firm has a market cap of $7.53 billion, a price-to-earnings ratio of 10.87 and a beta of 0.28. The firm has a 50 day moving average price of $198.04 and a 200-day moving average price of $183.66. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.37 and a current ratio of 0.37.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last issued its earnings results on Wednesday, April 29th. The insurance provider reported $5.25 EPS 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 company had revenue of $1.70 billion for the quarter, compared to analysts' expectations of $1.58 billion. During the same quarter last year, the company earned $3.87 EPS. The firm's revenue was up 6.1% compared to the same quarter last year. As a group, equities research analysts forecast that The Hanover Insurance Group will post 18.38 earnings per share for the current year.

The Hanover Insurance Group announced that its board has authorized a stock buyback plan on Wednesday, May 13th that permits the company to buyback $700.00 million in outstanding shares. This buyback authorization permits the insurance provider to repurchase up to 10.6% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's board believes its stock is undervalued.

Insider Activity

In related news, EVP Denise Lowsley sold 4,175 shares of The Hanover Insurance Group stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $191.73, for a total transaction of $800,472.75. Following the sale, the executive vice president directly owned 3,883 shares in the company, valued at $744,487.59. The trade was a 51.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO John C. Roche sold 8,358 shares of the company's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $193.74, for a total value of $1,619,278.92. Following the completion of the sale, the chief executive officer directly owned 141,011 shares in the company, valued at approximately $27,319,471.14. The trade was a 5.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 29,508 shares of company stock worth $5,704,651. Company insiders own 2.80% of the company's stock.

Institutional Trading of The Hanover Insurance Group

A number of hedge funds have recently modified their holdings of THG. Basecamp Wealth Advisors LLC increased its stake in shares of The Hanover Insurance Group by 19.1% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 343 shares of the insurance provider's stock worth $59,000 after acquiring an additional 55 shares in the last quarter. EverSource Wealth Advisors LLC boosted its stake 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 acquiring an additional 59 shares in the last quarter. Crossmark Global Holdings Inc. grew its holdings in The Hanover Insurance Group by 3.5% in the fourth quarter. Crossmark Global Holdings Inc. now owns 1,880 shares of the insurance provider's stock worth $344,000 after purchasing an additional 64 shares during the period. Ballentine Partners LLC increased its stake in shares of 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 valued at $370,000 after purchasing an additional 66 shares in the last quarter. Finally, Public Employees Retirement System of Ohio lifted its holdings in shares of 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 valued at $2,183,000 after purchasing an additional 66 shares during the last quarter. Institutional investors 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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