The Hanover Insurance Group (NYSE:THG) Sets New 12-Month High – Still a Buy?

The Hanover Insurance Group, Inc. (NYSE:THG) hit a new 52-week high during trading on Tuesday . The company traded as high as $236.07 and last traded at $232.1830, with a volume of 264525 shares trading hands. The stock had previously closed at $232.63.

The Hanover Insurance Group News Summary

Here are the key news stories impacting The Hanover Insurance Group this week:

• Positive Sentiment: Analysts raised earnings estimates. DOWLING & PARTN increased its FY2026 EPS forecast to $19.50 from $18.00 and its FY2027 forecast to $19.00 from $17.50. The FY2026 estimate is above the current consensus of $19.15, signaling improved expectations for profitability. MarketBeat THG analyst estimates
• Positive Sentiment: Momentum and valuation screens remain supportive. Recent Zacks analysis highlights THG as a potential momentum stock and examines whether its shares remain undervalued, supporting investor interest after the stock’s substantial advance above both its 50-day and 200-day moving averages. Zacks momentum analysis Zacks valuation analysis
• Positive Sentiment: Recent operating results were well ahead of expectations. THG reported quarterly EPS of $5.31 versus the $3.84 consensus, while revenue reached $1.73 billion, above estimates of $1.65 billion and up 4.6% year over year. The company also reported a 21.72% return on equity and an 11.17% net margin. MarketBeat THG earnings report
• Neutral Sentiment: Analyst opinion is mixed but leans positive. THG carries a “Moderate Buy” consensus rating, with a consensus price target of $223.29. Citizens JMP raised its target to $240, while Morgan Stanley and BMO Capital Markets maintain more cautious, market-perform or equal-weight views.
• Negative Sentiment: An insider reduced exposure. Director Jane Carlin sold 1,000 shares at an average price of $231.50, reducing her holdings by approximately 30.6%. While the transaction is relatively small, insider selling can weigh on sentiment, particularly with the stock near its 52-week high. THG insider selling report

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on THG shares. Morgan Stanley lifted their price target 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. Royal Bank Of Canada increased their price objective on The Hanover Insurance Group from $215.00 to $235.00 and gave the stock a “sector perform” rating in a report on Thursday, July 30th. Weiss Ratings raised shares of The Hanover Insurance Group from a “buy (a-)” rating to a “buy (a)” rating in a research report on Thursday, July 30th. Citigroup reiterated an “outperform” rating on shares of The Hanover Insurance Group in a research note on Friday, July 10th. Finally, Citizens Jmp boosted their target price on shares of The Hanover Insurance Group from $225.00 to $240.00 and gave the stock a “market outperform” rating in a research report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, The Hanover Insurance Group presently has an average rating of “Moderate Buy” and a consensus price target of $223.29.

The Hanover Insurance Group Stock Performance

The company has a current ratio of 0.38, a quick ratio of 0.38 and a debt-to-equity ratio of 0.22. The firm has a market cap of $7.98 billion, a price-to-earnings ratio of 10.93 and a beta of 0.27. The stock has a fifty day moving average price of $208.99 and a 200 day moving average price of $189.06.

The Hanover Insurance Group (NYSE:THG) last posted its earnings results on Tuesday, July 28th. The insurance provider reported $5.31 earnings per share for the quarter, topping the consensus estimate of $3.84 by $1.47. The Hanover Insurance Group had a return on equity of 21.72% and a net margin of 11.17%.The firm had revenue of $1.73 billion during the quarter, compared to analyst estimates of $1.65 billion. During the same period in the previous year, the company earned $4.35 EPS. The company’s revenue for the quarter was up 4.6% on a year-over-year basis. As a group, analysts predict that The Hanover Insurance Group, Inc. will post 19.45 earnings per share for the current year.

The Hanover Insurance Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were given a $0.95 dividend. This represents a $3.80 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Friday, June 12th. The Hanover Insurance Group’s dividend payout ratio (DPR) is currently 18.14%.

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

Insider Buying and Selling at The Hanover Insurance Group

In other The Hanover Insurance Group news, EVP Dennis Francis Kerrigan sold 6,262 shares of The Hanover Insurance Group stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $192.99, for a total value of $1,208,503.38. Following the transaction, the executive vice president directly owned 11,988 shares of the company’s stock, valued at $2,313,564.12. The trade was a 34.31% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO John C. Roche sold 8,358 shares of the company’s stock in a transaction that occurred 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 owned 141,011 shares of the company’s stock, valued at approximately $27,319,471.14. This trade represents a 5.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 27,108 shares of company stock worth $5,295,251 in the last ninety days. 2.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. JPL Wealth Management LLC acquired a new stake in The Hanover Insurance Group during the third quarter worth about $26,000. McMillan Office Inc. bought a new position in The Hanover Insurance Group during the fourth quarter valued at about $31,000. Entrust Financial LLC acquired a new position in The Hanover Insurance Group in the 4th quarter valued at approximately $33,000. Root Financial Partners LLC lifted its position in shares of The Hanover Insurance Group by 69.3% in the 1st quarter. Root Financial Partners LLC now owns 237 shares of the insurance provider’s stock worth $41,000 after acquiring an additional 97 shares during the period. Finally, IFP Advisors Inc lifted its position 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 worth $47,000 after acquiring an additional 152 shares during the period. Institutional investors own 86.61% of the company’s stock.

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.