The Hanover Insurance Group (NYSE:THG) Reaches New 52-Week High - Here's What Happened

Key Points

• The Hanover Insurance Group hit a new 52-week high on Monday, trading as high as $203.07 after closing at $197.93 the previous session.
• Recent earnings were stronger than expected, with quarterly EPS of $5.25 beating estimates by $1.11 and revenue of $1.70 billion topping forecasts.
• Analysts remain constructive overall, with a consensus “Moderate Buy” rating and an average price target of $207, while the company also announced a quarterly dividend and a $700 million stock buyback program.

The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) shares hit a new 52-week high during mid-day trading on Monday . The company traded as high as $203.07 and last traded at $202.7250, with a volume of 31683 shares. The stock had previously closed at $197.93.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on THG. Royal Bank Of Canada increased their target price on shares of The Hanover Insurance Group from $190.00 to $195.00 and gave the company a "sector perform" rating in a research 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 increased their price objective on shares of The Hanover Insurance Group from $200.00 to $205.00 and gave the stock a "market outperform" rating in a research report on Thursday, April 30th. Weiss Ratings raised shares of The Hanover Insurance Group from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Friday, May 22nd. Finally, Oppenheimer boosted their target price on shares of The Hanover Insurance Group from $205.00 to $220.00 and gave the company an "outperform" rating in a report on Thursday, May 21st. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, The Hanover Insurance Group has a consensus rating of "Moderate Buy" and an average price target of $207.00.

The Hanover Insurance Group Stock Performance

The firm has a market capitalization of $7.06 billion, a P/E ratio of 10.15 and a beta of 0.30. The company's 50 day moving average is $188.43 and its 200-day moving average is $180.56. The company has a quick ratio of 0.37, a current ratio of 0.37 and a debt-to-equity ratio of 0.22.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share for the quarter, beating the consensus estimate of $4.14 by $1.11. The firm had revenue of $1.70 billion during the quarter, compared to the consensus estimate of $1.58 billion. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%. The business's revenue was up 6.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.87 earnings per share. As a group, equities analysts anticipate that The Hanover Insurance Group, Inc. will post 18.36 EPS for the current year.

The Hanover Insurance Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, June 12th will be issued a $0.95 dividend. The ex-dividend date is Friday, June 12th. This represents a $3.80 annualized dividend and a yield of 1.9%. The Hanover Insurance Group's dividend payout ratio is presently 19.12%.

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

Insider Transactions at The Hanover Insurance Group

In related news, Director Francisco Aristeguieta sold 1,000 shares of The Hanover Insurance Group 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 completion of the sale, the director owned 4,053 shares of the company's stock, valued at approximately $791,834.61. This trade represents a 19.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Dennis Francis Kerrigan sold 6,262 shares of The Hanover Insurance Group stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $192.99, for a total transaction of $1,208,503.38. Following the transaction, the executive vice president owned 11,988 shares of the company's stock, valued at $2,313,564.12. This represents a 34.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 29,508 shares of company stock valued at $5,704,651. Company insiders own 2.80% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of THG. Western Wealth Management LLC bought a new stake in The Hanover Insurance Group during the first quarter worth $188,000. Empowered Funds LLC lifted its stake in The Hanover Insurance Group by 41.9% during the 1st quarter. Empowered Funds LLC now owns 1,645 shares of the insurance provider's stock valued at $285,000 after acquiring an additional 486 shares in the last quarter. Bank of America Corp DE boosted its holdings in The Hanover Insurance Group by 10.1% during the 1st quarter. Bank of America Corp DE now owns 251,130 shares of the insurance provider's stock worth $43,533,000 after acquiring an additional 22,978 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of The Hanover Insurance Group by 5.5% in the 1st 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. Finally, California State Teachers Retirement System grew its stake in shares of The Hanover Insurance Group by 30.7% in the 1st quarter. California State Teachers Retirement System now owns 43,399 shares of the insurance provider's stock worth $7,523,000 after acquiring an additional 10,188 shares in 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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