Entropy Technologies LP Purchases Shares of 2,601 The Hanover Insurance Group, Inc. $THG

Entropy Technologies LP acquired a new position in shares of The Hanover Insurance Group, Inc. (NYSE:THG) during the first quarter, HoldingsChannel reports. The institutional investor acquired 2,601 shares of the insurance provider’s stock, valued at approximately $451,000.

Several other institutional investors have also modified their holdings of THG. Norges Bank acquired a new position in shares of The Hanover Insurance Group in the 4th quarter valued at $83,817,000. Alliancebernstein L.P. grew its position in shares of 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 valued at $217,505,000 after buying an additional 339,896 shares during the last quarter. AQR Capital Management LLC raised its stake 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 acquiring an additional 209,616 shares in the last quarter. Invesco Ltd. lifted its position in The Hanover Insurance Group by 44.1% in the fourth 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 last quarter. Finally, Balyasny Asset Management L.P. lifted its position in The Hanover Insurance Group by 206.0% in the third 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 last quarter. Hedge funds and other institutional investors own 86.61% of the company’s stock.

The Hanover Insurance Group Stock Up 3.9%

Shares of NYSE:THG opened at $232.83 on Thursday. The stock has a market cap of $8.15 billion, a P/E ratio of 11.11 and a beta of 0.28. The firm has a fifty day moving average price of $205.43 and a 200 day moving average price of $186.97. 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 Hanover Insurance Group, Inc. has a 1-year low of $164.85 and a 1-year high of $235.16.

The Hanover Insurance Group (NYSE:THG) last issued its quarterly earnings data on Tuesday, July 28th. The insurance provider reported $5.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.88 by $1.43. The company had revenue of $1.73 billion for the quarter, compared to the consensus estimate of $1.65 billion. The Hanover Insurance Group had a net margin of 11.17% and a return on equity of 21.95%. The Hanover Insurance Group’s revenue for the quarter was up 4.6% on a year-over-year basis. During the same period last year, the firm posted $4.35 EPS. Sell-side analysts predict that The Hanover Insurance Group, Inc. will post 18.38 EPS for the current year.

The Hanover Insurance Group announced that its Board of Directors has authorized a stock buyback program on Wednesday, May 13th that authorizes the company to buyback $700.00 million in 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 typically an indication that the company’s board of directors believes its shares are undervalued.

The Hanover Insurance Group Announces Dividend

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

The Hanover Insurance Group News Summary

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

• Positive Sentiment: Record earnings beat expectations: THG reported second-quarter operating earnings of $5.31 per diluted share, well above the consensus estimate of $3.84–$3.88 and up from $4.35 a year earlier. Net income reached $191.6 million, while revenue increased 4.6% year over year to $1.73 billion. The Hanover second-quarter results
• Positive Sentiment: Improved underwriting and lower catastrophe impact: The company’s combined ratio improved to 91.2%, or 85.5% excluding catastrophe losses. Catastrophe losses totaled $91.8 million, while the loss and loss-adjustment expense ratio improved 1.7 points from the prior-year quarter.
• Positive Sentiment: Personal Lines led profitability gains: Personal Lines operating profit nearly doubled, and its combined ratio fell to 88.9%. Renewal pricing also remained supportive, rising 8.7% in Personal Lines, 7.8% in Core Commercial and 3.6% in Specialty. Net investment income increased 13.4% to $119.6 million. The Hanover Insurance: Better Margins Justify A Premium Valuation
• Positive Sentiment: Analyst confidence strengthened: Citizens JMP raised its price target from $225 to $240 and maintained a “Market Outperform” rating, suggesting continued confidence in THG’s earnings momentum and margin improvement.
• Neutral Sentiment: Valuation reflects optimism: THG trades at approximately 2.2 times book value and 10.45 times earnings. The stronger margins may justify a premium, but the valuation leaves less room for error if catastrophe losses increase.

Insider Activity

In related news, Director Cynthia Egan sold 3,400 shares of the business’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $188.50, for a total value of $640,900.00. Following the transaction, the director owned 9,359 shares in the company, valued at $1,764,171.50. The trade was a 26.65% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Dennis Francis Kerrigan sold 6,262 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $192.99, for a total value of $1,208,503.38. Following the sale, the executive vice president directly owned 11,988 shares of the company’s stock, valued at approximately $2,313,564.12. This represents a 34.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 29,508 shares of company stock valued at $5,704,651. Insiders own 2.80% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Oppenheimer upped their price objective on shares of The Hanover Insurance Group from $205.00 to $220.00 and gave the company an “outperform” rating in a research note on Thursday, May 21st. Keefe, Bruyette & Woods reiterated a “market perform” rating and set a $220.00 target price (up from $211.00) on shares of The Hanover Insurance Group in a research report on Wednesday, July 8th. Zacks Research downgraded The Hanover Insurance Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 7th. Royal Bank Of Canada upped their target price on The Hanover Insurance Group from $195.00 to $215.00 and gave the company a “sector perform” rating in a research report on Monday, July 13th. Finally, BMO Capital Markets downgraded The Hanover Insurance Group from an “outperform” rating to a “market perform” rating and raised their price target for the stock from $194.00 to $203.00 in a research note on Tuesday, May 19th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $220.43.

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.