The Hanover Insurance Group (NYSE:THG) Sets New 52-Week High - Should You Buy?

Key Points

• The Hanover Insurance Group (NYSE:THG) hit a new 52-week high, trading as high as $213.13, as the stock continued to outperform its recent moving averages.
• The company reported strong first-quarter results, beating expectations on both earnings and revenue, with EPS of $5.25 versus $4.14 estimated and revenue of $1.70 billion. Analysts now see consensus coverage as Moderate Buy with an average price target of $207.
• Hanover also returned capital to shareholders through a quarterly dividend and a new $700 million share repurchase authorization, while insiders sold shares in recent months and institutions still hold the majority of the stock.

The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) hit a new 52-week high on Monday . The stock traded as high as $213.13 and last traded at $211.7750, with a volume of 434953 shares changing hands. The stock had previously closed at $212.61.

Wall Street Analyst Weigh In

Several analysts recently issued reports on THG shares. Royal Bank Of Canada upped their target price on 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. Weiss Ratings upgraded The Hanover Insurance Group from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Friday, May 22nd. Morgan Stanley set a $195.00 price target on The Hanover Insurance Group in a research report on Friday, May 1st. BMO Capital Markets cut The Hanover Insurance Group from an "outperform" rating to a "market perform" rating and upped their price objective for the stock from $194.00 to $203.00 in a research note on Tuesday, May 19th. Finally, Keefe, Bruyette & Woods increased their price objective on The Hanover Insurance Group from $208.00 to $211.00 and gave the company an "outperform" rating in a report on Thursday, May 7th. Two research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $207.00.

The Hanover Insurance Group Stock Up 0.1%

The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 0.22. The firm's 50 day moving average price is $191.39 and its two-hundred day moving average price is $181.56. The company has a market capitalization of $7.45 billion, a price-to-earnings ratio of 10.72 and a beta of 0.30.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last issued its earnings results on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.14 by $1.11. The business 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 Hanover Insurance Group's revenue was up 6.1% on a year-over-year basis. During the same period last year, the business posted $3.87 EPS. Sell-side analysts anticipate that The Hanover Insurance Group, Inc. will post 18.36 earnings per share for the current fiscal year.

The Hanover Insurance Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were given a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend was Friday, June 12th. The Hanover Insurance Group's dividend payout ratio (DPR) is presently 19.12%.

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 repurchase up to 10.6% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at The Hanover Insurance Group

In related news, Director Cynthia Egan sold 3,400 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $188.50, for a total value of $640,900.00. Following the sale, the director owned 9,359 shares in the company, valued at approximately $1,764,171.50. This represents a 26.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Dennis Francis Kerrigan sold 6,262 shares of The Hanover Insurance Group stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $192.99, for a total transaction of $1,208,503.38. Following the transaction, the executive vice president directly owned 11,988 shares of the company's stock, valued at approximately $2,313,564.12. This trade represents a 34.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 29,508 shares of company stock worth $5,704,651 in the last three months. 2.80% of the stock is owned by insiders.

Institutional Trading of The Hanover Insurance Group

Several hedge funds and other institutional investors have recently modified their holdings of THG. JPL Wealth Management LLC acquired a new stake in The Hanover Insurance Group in the 3rd quarter worth about $26,000. Community Bank N.A. bought a new position in shares of The Hanover Insurance Group during the third quarter worth approximately $27,000. McMillan Office Inc. bought a new position in shares of The Hanover Insurance Group during the fourth quarter worth approximately $31,000. Entrust Financial LLC acquired a new stake in shares of The Hanover Insurance Group in the fourth quarter valued at approximately $33,000. Finally, Clearstead Advisors LLC raised its position in shares of The Hanover Insurance Group by 300.0% in the third quarter. Clearstead Advisors LLC now owns 200 shares of the insurance provider's stock valued at $36,000 after buying an additional 150 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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