The Hanover Insurance Group (NYSE:THG) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• The Hanover beat expectations with $5.25 EPS vs. $4.22 expected and revenue of $1.70B vs. $1.58B, prompting shares to gap up premarket (closed $177.51 → opened $191.66).
• The company paid a quarterly dividend of $0.95 per share (annualized $3.80), implying a ~2.0% yield and a payout ratio of 20.9%.
• Analysts are mixed but overall positive with a consensus "Moderate Buy" and a $197 average price target, while insiders have trimmed holdings and institutional ownership is high at 86.6%.

The Hanover Insurance Group, Inc. (NYSE:THG - Get Free Report) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $177.51, but opened at $191.66. The Hanover Insurance Group shares last traded at $185.2520, with a volume of 14,651 shares trading hands.

The insurance provider reported $5.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.22 by $1.03. The Hanover Insurance Group had a net margin of 10.05% and a return on equity of 21.00%. The business had revenue of $1.70 billion for the quarter, compared to analysts' expectations of $1.58 billion. During the same period in the prior year, the company posted $3.87 EPS. The business's revenue for the quarter was up 6.1% compared to the same quarter last year.

The Hanover Insurance Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 27th. Stockholders of record on Friday, March 13th were given a dividend of $0.95 per share. The ex-dividend date was Friday, March 13th. This represents a $3.80 annualized dividend and a dividend yield of 2.0%. The Hanover Insurance Group's dividend payout ratio (DPR) is 20.91%.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on THG shares. Citigroup restated an "outperform" rating on shares of The Hanover Insurance Group in a research report on Thursday. Morgan Stanley lowered their price objective on shares of The Hanover Insurance Group from $194.00 to $190.00 and set an "equal weight" rating on the stock in a research report on Monday, April 6th. Weiss Ratings restated a "buy (b)" rating on shares of The Hanover Insurance Group in a research report on Monday, April 20th. Wall Street Zen cut shares of The Hanover Insurance Group from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Finally, Keefe, Bruyette & Woods raised their price objective on shares of The Hanover Insurance Group from $207.00 to $208.00 and gave the company an "outperform" rating in a research report on Wednesday, February 25th. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, The Hanover Insurance Group has a consensus rating of "Moderate Buy" and an average price target of $197.00.

Insider Buying and Selling at The Hanover Insurance Group

In related news, Director Jane D. Carlin sold 1,200 shares of the stock in a transaction on Friday, February 27th. The shares were sold at an average price of $180.91, for a total transaction of $217,092.00. Following the transaction, the director owned 2,423 shares of the company's stock, valued at approximately $438,344.93. This trade represents a 33.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Richard W. Lavey sold 24,420 shares of the firm's stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $178.92, for a total transaction of $4,369,226.40. Following the completion of the sale, the executive vice president directly owned 32,174 shares in the company, valued at approximately $5,756,572.08. This trade represents a 43.15% decrease in their position. The disclosure for this sale is available in the SEC filing. 2.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On The Hanover Insurance Group

Large investors have recently added to or reduced their stakes in the company. AlphaQuest LLC grew its holdings in The Hanover Insurance Group by 563.1% in the 3rd quarter. AlphaQuest LLC now owns 13,296 shares of the insurance provider's stock worth $2,415,000 after acquiring an additional 11,291 shares during the last quarter. ProShare Advisors LLC boosted its stake in shares of The Hanover Insurance Group by 5.6% during the 3rd quarter. ProShare Advisors LLC now owns 213,676 shares of the insurance provider's stock valued at $38,810,000 after purchasing an additional 11,415 shares in the last quarter. Vest Financial LLC boosted its stake in shares of The Hanover Insurance Group by 84.4% during the 3rd quarter. Vest Financial LLC now owns 22,670 shares of the insurance provider's stock valued at $4,118,000 after purchasing an additional 10,375 shares in the last quarter. Channing Capital Management LLC boosted its stake in shares of The Hanover Insurance Group by 73.6% during the 3rd quarter. Channing Capital Management LLC now owns 68,641 shares of the insurance provider's stock valued at $12,467,000 after purchasing an additional 29,106 shares in the last quarter. Finally, First Trust Advisors LP boosted its stake in shares of The Hanover Insurance Group by 28.5% during the 3rd quarter. First Trust Advisors LP now owns 639,264 shares of the insurance provider's stock valued at $116,110,000 after purchasing an additional 141,835 shares in the last quarter. Institutional investors own 86.61% of the company's stock.

The Hanover Insurance Group Price Performance

The business's 50 day moving average price is $176.07 and its two-hundred day moving average price is $176.90. The stock has a market cap of $6.58 billion, a P/E ratio of 10.31 and a beta of 0.29. The company has a current ratio of 0.44, a quick ratio of 0.44 and a debt-to-equity ratio of 0.24.

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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