The Hanover Insurance Group, Inc. (NYSE:THG) Receives Consensus Rating of “Moderate Buy” from Brokerages

Shares of The Hanover Insurance Group, Inc. (NYSE:THG) have earned a consensus recommendation of “Moderate Buy” from the ten ratings firms that are presently covering the stock, MarketBeat reports. Five equities research analysts have rated the stock with a hold recommendation, four have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $218.2857.

THG has been the topic of several recent analyst reports. Keefe, Bruyette & Woods reiterated a “market perform” rating and issued a $220.00 price target (up from $211.00) on shares of The Hanover Insurance Group in a research note on Wednesday, July 8th. Morgan Stanley raised their price objective on The Hanover Insurance Group from $220.00 to $225.00 and gave the company an “equal weight” rating in a report on Wednesday, July 8th. Citizens Jmp boosted their price objective on The Hanover Insurance Group from $205.00 to $225.00 and gave the stock a “market outperform” rating in a research report on Friday. Weiss Ratings raised The Hanover Insurance Group from a “buy (b+)” rating to a “buy (a-)” rating in a report on Friday, May 22nd. Finally, Oppenheimer increased their target price on The Hanover Insurance Group from $205.00 to $220.00 and gave the company an “outperform” rating in a research report on Thursday, May 21st.

The Hanover Insurance Group Stock Performance

NYSE THG opened at $216.79 on Tuesday. 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 has a market capitalization of $7.59 billion, a price-to-earnings ratio of 10.91 and a beta of 0.28. The firm’s 50 day simple moving average is $199.34 and its 200 day simple moving average is $184.08. The Hanover Insurance Group has a 1 year low of $162.69 and a 1 year high of $225.29.

The Hanover Insurance Group (NYSE:THG) last announced its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $5.25 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to the consensus estimate of $1.58 billion. During the same period in the previous year, the business earned $3.87 earnings per share. The company’s revenue was up 6.1% on a year-over-year basis. As a group, research analysts expect that The Hanover Insurance Group will post 18.38 earnings per share for the current fiscal year.

The Hanover Insurance Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were paid a $0.95 dividend. The ex-dividend date of this dividend was Friday, June 12th. This represents a $3.80 annualized dividend and a dividend yield of 1.8%. The Hanover Insurance Group’s dividend payout ratio is currently 19.12%.

The Hanover Insurance Group declared that its board has initiated a stock buyback plan on Wednesday, May 13th that permits the company to repurchase $700.00 million in shares. This repurchase authorization permits the insurance provider to buy up to 10.6% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In related news, EVP Denise Lowsley sold 4,175 shares of The Hanover Insurance Group stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $191.73, for a total transaction of $800,472.75. Following the sale, the executive vice president directly owned 3,883 shares in the company, valued at $744,487.59. This trade represents a 51.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Cynthia Egan sold 3,400 shares of The Hanover Insurance Group stock in a transaction on Friday, May 1st. The stock was sold at an average price of $188.50, for a total transaction of $640,900.00. Following the transaction, the director owned 9,359 shares in the company, valued at approximately $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. Insiders have sold 29,508 shares of company stock worth $5,704,651 over the last quarter. 2.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On The Hanover Insurance Group

A number of hedge funds and other institutional investors have recently made changes to their positions in THG. Millennium Management LLC raised its holdings in The Hanover Insurance Group by 61.0% during the 1st quarter. Millennium Management LLC now owns 88,367 shares of the insurance provider’s stock worth $15,371,000 after purchasing an additional 33,495 shares during the last quarter. NewEdge Advisors LLC raised its stake in The Hanover Insurance Group by 1,568.9% during the first quarter. NewEdge Advisors LLC now owns 751 shares of the insurance provider’s stock worth $131,000 after buying an additional 706 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in The Hanover Insurance Group by 21.6% in the first quarter. Goldman Sachs Group Inc. now owns 218,753 shares of the insurance provider’s stock valued at $38,052,000 after buying an additional 38,905 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in The Hanover Insurance Group by 6.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 129,031 shares of the insurance provider’s stock valued at $22,445,000 after acquiring an additional 7,712 shares during the last quarter. Finally, Invesco Ltd. grew its holdings in The Hanover Insurance Group by 7.7% during the 2nd quarter. Invesco Ltd. now owns 283,484 shares of the insurance provider’s stock worth $48,155,000 after acquiring an additional 20,294 shares during the period. 86.61% of the stock is owned by institutional investors and hedge funds.

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.