The Hanover Insurance Group (NYSE:THG) Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded The Hanover Insurance Group to “strong buy” from “hold.” Overall, analysts assign the stock a “Moderate Buy” consensus rating with an average price target of $223.57.
• Hanover reported quarterly EPS of $5.31, beating estimates of $3.84, while revenue reached $1.73 billion, up 4.6% year over year and above expectations.
• The company authorized a $700 million share-repurchase program, covering up to 10.6% of outstanding shares. THG shares opened at $231.63, near their 52-week high of $236.07.

The Hanover Insurance Group (NYSE:THG - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

THG has been the topic of several other reports. Royal Bank Of Canada raised their price target on The Hanover Insurance Group from $215.00 to $235.00 and gave the stock a "sector perform" rating in a research report on Thursday, July 30th. Citizens Jmp upped their price objective on The Hanover Insurance Group from $225.00 to $240.00 and gave the company a "market outperform" rating in a report on Wednesday, July 29th. BMO Capital Markets lowered The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and increased their target price for the company from $194.00 to $203.00 in a research note on Tuesday, May 19th. Piper Sandler lowered The Hanover Insurance Group from an "overweight" rating to a "neutral" rating and set a $220.00 target price on the stock. in a research note on Wednesday, July 15th. Finally, Keefe, Bruyette & Woods raised their target price on The Hanover Insurance Group from $220.00 to $222.00 and gave the stock a "market perform" rating in a report on Thursday. Two 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 stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $223.57.

The Hanover Insurance Group Trading Up 1.1%

Shares of NYSE THG opened at $231.63 on Wednesday. The company's 50 day simple moving average is $209.87 and its 200 day simple moving average is $189.49. The Hanover Insurance Group has a fifty-two week low of $165.50 and a fifty-two week high of $236.07. The firm has a market capitalization of $8.07 billion, a P/E ratio of 11.06 and a beta of 0.27. 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 released its earnings results on Tuesday, July 28th. The insurance provider reported $5.31 EPS for the quarter, topping analysts' consensus estimates of $3.84 by $1.47. The firm had revenue of $1.73 billion during the quarter, compared to analyst estimates of $1.65 billion. The Hanover Insurance Group had a net margin of 11.17% and a return on equity of 21.72%. The business's quarterly revenue was up 4.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $4.35 EPS. On average, analysts predict that The Hanover Insurance Group will post 20.15 EPS for the current year.

The Hanover Insurance Group announced that its board has initiated a share repurchase program on Wednesday, May 13th that allows the company to buyback $700.00 million in shares. This buyback authorization allows the insurance provider to repurchase up to 10.6% of its shares through open market purchases. Shares buyback programs are often an indication that the company's board believes its shares are undervalued.

Insider Activity

In other news, Director Francisco Aristeguieta sold 1,000 shares of the stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $195.37, for a total transaction of $195,370.00. Following the completion of the sale, the director owned 4,053 shares of the company's stock, valued at $791,834.61. This represents a 19.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO John C. Roche sold 8,358 shares of the firm's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $193.74, for a total transaction of $1,619,278.92. Following the sale, the chief executive officer 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 ninety days, insiders sold 26,046 shares of company stock worth $5,095,138. Corporate insiders own 2.80% of the company's stock.

Hedge Funds Weigh In On The Hanover Insurance Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Global Retirement Partners LLC bought a new position in The Hanover Insurance Group during the 2nd quarter worth about $817,000. Bank of New York Mellon Corp acquired a new position in shares of The Hanover Insurance Group during the second quarter worth about $69,481,000. Focus Partners Advisor Solutions LLC acquired a new position in shares of The Hanover Insurance Group during the second quarter worth about $677,000. State of Wyoming bought a new position in shares of The Hanover Insurance Group during the second quarter worth about $81,000. Finally, GSA Capital Partners LLP acquired a new stake in The Hanover Insurance Group in the 2nd quarter valued at approximately $512,000. 86.61% of the stock is owned by institutional investors and hedge funds.

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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