The Hanover Insurance Group (NYSE:THG) Hits New 1-Year High – Should You Buy?

Shares of The Hanover Insurance Group, Inc. (NYSE:THG) hit a new 52-week high during trading on Monday . The company traded as high as $222.07 and last traded at $220.90, with a volume of 17566 shares trading hands. The stock had previously closed at $221.61.

Analyst Ratings Changes

Several analysts have recently weighed in on THG shares. Keefe, Bruyette & Woods boosted their price target 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. Citigroup reiterated an “outperform” rating on shares of The Hanover Insurance Group in a report on Thursday, April 30th. Oppenheimer lifted their target price on shares of The Hanover Insurance Group from $205.00 to $220.00 and gave the stock an “outperform” rating in a research report on Thursday, May 21st. Piper Sandler boosted their target price on shares of The Hanover Insurance Group from $212.00 to $220.00 and gave the stock an “overweight” rating in a report on Tuesday, May 26th. Finally, Morgan Stanley boosted their target price on shares of The Hanover Insurance Group to $220.00 and gave the stock an “equal weight” rating in a report on Monday. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $210.57.

The Hanover Insurance Group Stock Performance

The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.37 and a current ratio of 0.37. The stock’s 50 day moving average price is $195.15 and its 200 day moving average price is $182.77. The company has a market capitalization of $7.69 billion, a P/E ratio of 11.07 and a beta of 0.28.

The Hanover Insurance Group (NYSE:THG) last announced its earnings results on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share for the quarter, topping analysts’ consensus estimates of $4.14 by $1.11. The business had revenue of $1.70 billion during 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 Hanover Insurance Group’s quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter last year, the firm earned $3.87 earnings per share. As a group, equities analysts expect that The Hanover Insurance Group, Inc. will post 18.36 EPS 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. Shareholders of record on Friday, June 12th were issued a dividend of $0.95 per share. This represents a $3.80 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date was Friday, June 12th. The Hanover Insurance Group’s dividend payout ratio (DPR) is presently 19.12%.

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

Insider Buying and Selling

In other news, EVP Dennis Francis Kerrigan sold 6,262 shares of the business’s stock in a transaction dated 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 document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Denise Lowsley sold 4,175 shares of the company’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $191.73, for a total value of $800,472.75. Following the sale, the executive vice president owned 3,883 shares in the company, valued at approximately $744,487.59. The trade was a 51.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 29,508 shares of company stock worth $5,704,651 over the last three months. Insiders own 2.80% of the company’s stock.

Institutional Trading of The Hanover Insurance Group

Several large investors have recently modified their holdings of the stock. Alliancebernstein L.P. increased its stake 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 acquiring an additional 339,896 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in The Hanover Insurance Group by 16.4% during the first quarter. Dimensional Fund Advisors LP now owns 970,177 shares of the insurance provider’s stock worth $168,179,000 after acquiring an additional 136,998 shares in the last quarter. AQR Capital Management LLC boosted its stake in The Hanover Insurance Group by 24.9% during the fourth quarter. AQR Capital Management LLC now owns 953,781 shares of the insurance provider’s stock worth $174,322,000 after acquiring an additional 190,350 shares in the last quarter. First Trust Advisors LP grew its holdings in The Hanover Insurance Group by 3.2% in the first quarter. First Trust Advisors LP now owns 827,320 shares of the insurance provider’s stock worth $143,416,000 after purchasing an additional 25,945 shares during the period. Finally, Geode Capital Management LLC grew its holdings in The Hanover Insurance Group by 4.3% in the fourth quarter. Geode Capital Management LLC now owns 727,958 shares of the insurance provider’s stock worth $133,073,000 after purchasing an additional 29,870 shares during the period. Institutional investors and hedge funds 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.