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

Shares of The Hanover Insurance Group, Inc. (NYSE:THG) reached a new 52-week high during trading on Tuesday . The stock traded as high as $200.09 and last traded at $199.62, with a volume of 4150 shares. The stock had previously closed at $197.65.

Analysts Set New Price Targets

Several research analysts have commented on the company. Citizens Jmp raised their price objective on The Hanover Insurance Group from $200.00 to $205.00 and gave the stock a “market outperform” rating in a report on Thursday, April 30th. Oppenheimer raised their price objective on The Hanover Insurance Group from $205.00 to $220.00 and gave the stock an “outperform” rating in a report on Thursday, May 21st. Keefe, Bruyette & Woods raised their price objective on The Hanover Insurance Group from $208.00 to $211.00 and gave the stock an “outperform” rating in a report on Thursday, May 7th. Weiss Ratings upgraded The Hanover Insurance Group from a “buy (b+)” rating to a “buy (a-)” rating in a report on Friday, May 22nd. Finally, Royal Bank Of Canada raised their price objective 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. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, The Hanover Insurance Group has a consensus rating of “Moderate Buy” and an average target price of $207.00.

The Hanover Insurance Group Stock Up 0.2%

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 cap of $6.98 billion, a PE ratio of 10.04 and a beta of 0.30. The business’s 50-day simple moving average is $187.58 and its 200 day simple moving average is $180.38.

The Hanover Insurance Group (NYSE:THG) last posted its earnings results on Wednesday, April 29th. The insurance provider reported $5.25 EPS for the quarter, beating analysts’ consensus estimates of $4.14 by $1.11. The business had revenue of $1.70 billion for 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 company’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter last year, the firm posted $3.87 EPS. As a group, equities research analysts expect that The Hanover Insurance Group, Inc. will post 18.36 earnings per share for the current year.

The Hanover Insurance Group Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, June 12th will be issued a $0.95 dividend. The ex-dividend date is Friday, June 12th. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.9%. The Hanover Insurance Group’s dividend payout ratio (DPR) is currently 19.12%.

The Hanover Insurance Group declared that its Board of Directors has initiated a share buyback plan on Wednesday, May 13th that authorizes the company to repurchase $700.00 million in outstanding shares. This repurchase authorization authorizes the insurance provider to repurchase up to 10.6% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other news, CEO John C. Roche sold 8,358 shares of The Hanover Insurance Group stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $193.74, for a total value of $1,619,278.92. Following the transaction, the chief executive officer directly owned 141,011 shares in the company, valued at approximately $27,319,471.14. This trade represents a 5.60% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Cynthia Egan sold 3,400 shares of The Hanover Insurance Group stock in a transaction on Friday, May 1st. The shares were 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 in the company, valued at $1,764,171.50. This represents a 26.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 29,508 shares of company stock worth $5,704,651. Insiders own 2.80% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. JPL Wealth Management LLC purchased a new position in shares of The Hanover Insurance Group in the 3rd quarter worth approximately $26,000. Community Bank N.A. purchased a new position in The Hanover Insurance Group during the 3rd quarter worth $27,000. McMillan Office Inc. purchased a new position in The Hanover Insurance Group during the 4th quarter worth $31,000. Entrust Financial LLC purchased a new position in The Hanover Insurance Group during the 4th quarter worth $33,000. Finally, Clearstead Advisors LLC grew its stake in The Hanover Insurance Group by 300.0% during the 3rd quarter. Clearstead Advisors LLC now owns 200 shares of the insurance provider’s stock worth $36,000 after buying an additional 150 shares during the last quarter. Hedge funds and other institutional investors own 86.61% of the company’s stock.

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.