The Hanover Insurance Group (NYSE:THG) Price Target Raised to $240.00

Key Points

• Morgan Stanley raised The Hanover Insurance Group’s price target to $240 from $235 while maintaining an “equal weight” rating, implying approximately 7.95% upside. Analysts overall rate the stock a “Moderate Buy,” with an average target of $225.71.
• Hanover reported quarterly EPS of $5.31, beating consensus estimates of $3.84, while revenue reached $1.73 billion and increased 4.6% year over year.
• The company authorized a $700 million share repurchase program, allowing it to buy back up to 10.6% of outstanding shares.

The Hanover Insurance Group (NYSE:THG - Get Free Report) had its price objective increased by Morgan Stanley from $235.00 to $240.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has an "equal weight" rating on the insurance provider's stock. Morgan Stanley's target price would suggest a potential upside of 7.95% from the stock's current price.

A number of other equities research analysts also recently issued reports on THG. Keefe, Bruyette & Woods boosted their target price on shares of The Hanover Insurance Group from $220.00 to $222.00 and gave the company a "market perform" rating in a report on Thursday, August 6th. BMO Capital Markets cut shares of The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and boosted their price objective for the company from $194.00 to $203.00 in a research note on Tuesday, May 19th. Weiss Ratings upgraded The Hanover Insurance Group from a "buy (a-)" rating to a "buy (a)" rating in a report on Thursday, July 30th. Oppenheimer boosted 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. Finally, Citigroup restated an "outperform" rating on shares of The Hanover Insurance Group in a report on Friday, July 10th. Two equities research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $225.71.

The Hanover Insurance Group Stock Performance

THG opened at $222.32 on Wednesday. The stock's 50 day simple moving average is $215.51 and its 200 day simple moving average is $192.48. The stock has a market cap of $7.74 billion, a P/E ratio of 10.61 and a beta of 0.27. The Hanover Insurance Group has a 1-year low of $166.54 and a 1-year high of $236.07. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.38 and a quick ratio of 0.38.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last posted its earnings results on Tuesday, July 28th. The insurance provider reported $5.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.84 by $1.47. The firm had revenue of $1.73 billion for the quarter, compared to analyst estimates of $1.65 billion. The Hanover Insurance Group had a return on equity of 21.72% and a net margin of 11.17%.The Hanover Insurance Group's revenue was up 4.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $4.35 EPS. As a group, equities analysts anticipate that The Hanover Insurance Group will post 20.15 EPS for the current fiscal year.

The Hanover Insurance Group announced that its board has initiated a share buyback plan on Wednesday, May 13th that allows the company to repurchase $700.00 million in shares. This repurchase authorization allows the insurance provider to buy up to 10.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Insider Activity at The Hanover Insurance Group

In related news, Director Francisco Aristeguieta sold 1,000 shares of the business's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $195.37, for a total value of $195,370.00. Following the sale, the director directly owned 4,053 shares of the company's stock, valued at approximately $791,834.61. The trade was a 19.79% 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 1,000 shares of The Hanover Insurance Group stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $231.50, for a total value of $231,500.00. Following the completion of the sale, the director directly owned 2,270 shares in the company, valued at approximately $525,505. This represents a 30.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 2.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. JPL Wealth Management LLC acquired a new position in shares of The Hanover Insurance Group during the 3rd quarter worth approximately $26,000. McMillan Office Inc. bought a new position in The Hanover Insurance Group during the fourth quarter worth $31,000. Entrust Financial LLC acquired a new position in shares of The Hanover Insurance Group in the fourth quarter valued at $33,000. Clearstead Trust LLC acquired a new position in shares of The Hanover Insurance Group in the second quarter valued at $36,000. Finally, Root Financial Partners LLC raised its position in shares of The Hanover Insurance Group by 69.3% in the first quarter. Root Financial Partners LLC now owns 237 shares of the insurance provider's stock valued at $41,000 after purchasing an additional 97 shares during the period. Institutional investors and hedge funds own 86.61% of the company's stock.

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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