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

Key Points

• The Hanover Insurance Group reached a new 52-week high, trading as high as $181.75 and last at $182.18, amidst positive analyst ratings.
• Analysts have set a consensus price target for the stock at $185.13, with several upgrading their ratings and one projecting a target as high as $205.00.
• The company reported earnings per share of $4.35 for the last quarter, significantly beating the consensus estimate, and announced a quarterly dividend of $0.90.

Shares of The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) reached a new 52-week high on Thursday . The company traded as high as $181.75 and last traded at $182.18, with a volume of 112277 shares. The stock had previously closed at $178.14.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. Citigroup reaffirmed an "outperform" rating on shares of The Hanover Insurance Group in a research note on Thursday, July 31st. Morgan Stanley upped their price target on The Hanover Insurance Group from $170.00 to $185.00 and gave the stock an "equal weight" rating in a research note on Friday, August 1st. JMP Securities set a $205.00 price target on The Hanover Insurance Group in a research note on Thursday, July 31st. Finally, Keefe, Bruyette & Woods raised The Hanover Insurance Group from a "market perform" rating to an "outperform" rating and set a $188.00 price target on the stock in a research note on Wednesday, July 9th. Six analysts have rated the stock with a Buy rating and four have assigned 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 a consensus price target of $185.13.

The Hanover Insurance Group Trading Up 2.5%

The company has a market capitalization of $6.53 billion, a P/E ratio of 12.02 and a beta of 0.46. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.37 and a quick ratio of 0.37. The firm has a fifty day moving average price of $169.94 and a 200-day moving average price of $168.08.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last released its earnings results on Wednesday, July 30th. The insurance provider reported $4.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.07 by $1.28. The company had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.60 billion. The Hanover Insurance Group had a return on equity of 20.24% and a net margin of 8.67%.The Hanover Insurance Group's quarterly revenue was up 3.1% on a year-over-year basis. During the same period in the prior year, the company posted $1.88 earnings per share. On average, equities research analysts anticipate that The Hanover Insurance Group, Inc. will post 14.37 earnings per share for the current year.

The Hanover Insurance Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 12th will be issued a $0.90 dividend. The ex-dividend date of this dividend is Friday, September 12th. This represents a $3.60 annualized dividend and a dividend yield of 2.0%. The Hanover Insurance Group's dividend payout ratio is currently 23.70%.

Hedge Funds Weigh In On The Hanover Insurance Group

Several institutional investors have recently modified their holdings of the business. Vanguard Group Inc. grew its holdings in shares of The Hanover Insurance Group by 0.6% in the first quarter. Vanguard Group Inc. now owns 3,635,173 shares of the insurance provider's stock valued at $632,338,000 after acquiring an additional 21,221 shares in the last quarter. Alliancebernstein L.P. grew its holdings in The Hanover Insurance Group by 36.1% during the second quarter. Alliancebernstein L.P. now owns 1,280,418 shares of the insurance provider's stock valued at $217,505,000 after purchasing an additional 339,896 shares during the period. Fuller & Thaler Asset Management Inc. grew its holdings in The Hanover Insurance Group by 45.1% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 907,760 shares of the insurance provider's stock valued at $157,905,000 after purchasing an additional 282,233 shares during the period. Adage Capital Partners GP L.L.C. grew its holdings in The Hanover Insurance Group by 52.9% during the second quarter. Adage Capital Partners GP L.L.C. now owns 558,000 shares of the insurance provider's stock valued at $94,787,000 after purchasing an additional 193,000 shares during the period. Finally, AQR Capital Management LLC grew its holdings in The Hanover Insurance Group by 21.0% during the second quarter. AQR Capital Management LLC now owns 553,815 shares of the insurance provider's stock valued at $93,190,000 after purchasing an additional 96,006 shares during the period. 86.61% of the stock is owned by institutional investors.

About The Hanover Insurance Group

The Hanover Insurance Group, Inc, through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates through four segments: Core Commercial, Specialty, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, and other commercial lines coverage.

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