The Hanover Insurance Group (NYSE:THG) Upgraded at Zacks Research

Key Points

• Zacks upgraded The Hanover Insurance Group from "hold" to "strong-buy", while the Street consensus remains a "Moderate Buy" with a $203 average target price.
• Q1 results topped expectations, reporting EPS of $5.25 versus $4.14 estimates and revenue of $1.70B versus $1.58B, with a 21.55% ROE and a PE ratio of 9.3 indicating strong profitability and attractive valuation.
• Mixed ownership signals: insiders sold about 29,020 shares recently, but large institutional investors (including Norges Bank, AllianceBernstein and Invesco) have materially increased stakes, leaving institutions with roughly 86.6% ownership.

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

THG has been the subject of several other reports. Keefe, Bruyette & Woods raised their target price on shares of The Hanover Insurance Group from $207.00 to $208.00 and gave the company an "outperform" rating in a research note on Wednesday, February 25th. Piper Sandler upped their price target on The Hanover Insurance Group from $204.00 to $212.00 and gave the stock an "overweight" rating in a research report on Friday. Weiss Ratings reissued a "buy (b)" rating on shares of The Hanover Insurance Group in a research report on Monday, April 20th. Wall Street Zen downgraded The Hanover Insurance Group from a "buy" rating to a "hold" rating in a research note on Saturday, February 28th. Finally, Citigroup reaffirmed an "outperform" rating on shares of The Hanover Insurance Group in a research report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $203.00.

The Hanover Insurance Group Stock Performance

Shares of The Hanover Insurance Group stock opened at $184.79 on Monday. The company has a market capitalization of $6.47 billion, a PE ratio of 9.30 and a beta of 0.31. The company has a 50-day simple moving average of $176.49 and a two-hundred day simple moving average of $177.07. The Hanover Insurance Group has a one year low of $160.70 and a one year high of $191.66. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.37 and a current ratio of 0.37.

The Hanover Insurance Group (NYSE:THG - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share for the quarter, beating analysts' consensus estimates of $4.14 by $1.11. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%. The business had revenue of $1.70 billion for the quarter, compared to analysts' expectations of $1.58 billion. During the same period last year, the business earned $3.87 EPS. The company's revenue was up 6.1% compared to the same quarter last year. Research analysts expect that The Hanover Insurance Group will post 18.02 EPS for the current fiscal year.

Insider Transactions at The Hanover Insurance Group

In related news, EVP Richard W. Lavey sold 24,420 shares of the company's stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $178.92, for a total value of $4,369,226.40. Following the transaction, the executive vice president directly owned 32,174 shares of the company's stock, valued at $5,756,572.08. This represents a 43.15% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Cynthia Egan sold 3,400 shares of the firm's 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 completion of the transaction, the director owned 9,359 shares of the company's stock, valued at $1,764,171.50. This trade represents a 26.65% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 29,020 shares of company stock worth $5,227,218. Company insiders own 2.80% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Norges Bank purchased a new stake in The Hanover Insurance Group in the fourth quarter valued at approximately $83,817,000. Alliancebernstein L.P. increased its holdings in The Hanover Insurance Group by 36.1% in the 2nd quarter. Alliancebernstein L.P. now owns 1,280,418 shares of the insurance provider's stock worth $217,505,000 after buying an additional 339,896 shares during the period. AQR Capital Management LLC raised its position in The Hanover Insurance Group by 37.8% during the 3rd quarter. AQR Capital Management LLC now owns 763,431 shares of the insurance provider's stock worth $137,967,000 after buying an additional 209,616 shares during the last quarter. Invesco Ltd. lifted its stake in The Hanover Insurance Group by 44.1% during the 4th quarter. Invesco Ltd. now owns 646,910 shares of the insurance provider's stock valued at $118,236,000 after acquiring an additional 197,930 shares during the period. Finally, Balyasny Asset Management L.P. lifted its stake in The Hanover Insurance Group by 206.0% during the 3rd quarter. Balyasny Asset Management L.P. now owns 292,121 shares of the insurance provider's stock valued at $53,058,000 after acquiring an additional 196,655 shares during the period. 86.61% of the stock is owned by institutional investors and hedge funds.

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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