The Hanover Insurance Group (NYSE:THG) Hits New 12-Month High on Better-Than-Expected Earnings

The Hanover Insurance Group, Inc. (NYSE:THG) shares hit a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $228.05 and last traded at $228.5550, with a volume of 21611 shares changing hands. The stock had previously closed at $224.15.

The insurance provider reported $5.31 EPS for the quarter, topping the consensus estimate of $3.84 by $1.47. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%. The firm had revenue of $1.73 billion for the quarter, compared to the consensus estimate of $1.65 billion. During the same quarter in the previous year, the firm earned $4.35 earnings per share. The company’s quarterly revenue was up 4.6% compared to the same quarter last year.

The Hanover Insurance Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, June 12th were given a $0.95 dividend. This represents a $3.80 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Friday, June 12th. The Hanover Insurance Group’s dividend payout ratio is 19.12%.

The Hanover Insurance Group declared that its Board of Directors has approved a share buyback program on Wednesday, May 13th that authorizes the company to buyback $700.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to repurchase up to 10.6% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. Oppenheimer boosted their target price on The Hanover Insurance Group from $205.00 to $220.00 and gave the stock an “outperform” rating in a research note on Thursday, May 21st. Keefe, Bruyette & Woods reaffirmed a “market perform” rating and issued a $220.00 price target (up from $211.00) on shares of The Hanover Insurance Group in a report on Wednesday, July 8th. BMO Capital Markets lowered shares of The Hanover Insurance Group from an “outperform” rating to a “market perform” rating and lifted their target price for the company from $194.00 to $203.00 in a report on Tuesday, May 19th. 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, Piper Sandler downgraded shares of The Hanover Insurance Group from an “overweight” rating to a “neutral” rating and set a $220.00 price objective on the stock. in a report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $220.43.

Insiders Place Their Bets

In other news, CEO John C. Roche sold 8,358 shares of The Hanover Insurance Group stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $193.74, for a total transaction of $1,619,278.92. Following the sale, the chief executive officer owned 141,011 shares of the company’s stock, valued at approximately $27,319,471.14. The trade was a 5.60% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Denise Lowsley sold 4,175 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $191.73, for a total value of $800,472.75. Following the completion of the transaction, the executive vice president owned 3,883 shares in the company, valued at $744,487.59. This represents a 51.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 29,508 shares of company stock worth $5,704,651. 2.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On The Hanover Insurance Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. JPL Wealth Management LLC purchased a new position in The Hanover Insurance Group during the third quarter worth about $26,000. McMillan Office Inc. acquired a new position in The Hanover Insurance Group in the 4th quarter valued at about $31,000. Entrust Financial LLC acquired a new stake in The Hanover Insurance Group during the 4th quarter worth approximately $33,000. Root Financial Partners LLC raised its stake in shares of The Hanover Insurance Group by 69.3% in the first quarter. Root Financial Partners LLC now owns 237 shares of the insurance provider’s stock valued at $41,000 after acquiring an additional 97 shares in the last quarter. Finally, IFP Advisors Inc boosted its stake in shares of The Hanover Insurance Group by 146.2% in the 4th quarter. IFP Advisors Inc now owns 256 shares of the insurance provider’s stock valued at $47,000 after buying an additional 152 shares during the period. Hedge funds and other institutional investors own 86.61% of the company’s stock.

The Hanover Insurance Group Stock Up 2.8%

The company has a debt-to-equity ratio of 0.22, a current ratio of 0.37 and a quick ratio of 0.37. The business’s 50 day moving average is $204.67 and its 200-day moving average is $186.57. The company has a market cap of $8.06 billion, a PE ratio of 11.60 and a beta of 0.28.

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.