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

The Hanover Insurance Group, Inc. (NYSE:THG)’s stock price hit a new 52-week high on Monday . The company traded as high as $203.07 and last traded at $202.7250, with a volume of 31683 shares changing hands. The stock had previously closed at $197.93.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on THG. Zacks Research upgraded shares of The Hanover Insurance Group from a “hold” rating to a “strong-buy” rating in a research report on Monday, May 4th. Weiss Ratings upgraded shares of The Hanover Insurance Group from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Friday, May 22nd. BMO Capital Markets downgraded shares of The Hanover Insurance Group from an “outperform” rating to a “market perform” rating and boosted their target price for the stock from $194.00 to $203.00 in a research note on Tuesday, May 19th. Wall Street Zen lowered shares of The Hanover Insurance Group from a “buy” rating to a “hold” rating in a research report on Saturday, February 28th. Finally, Keefe, Bruyette & Woods increased their price target on shares of The Hanover Insurance Group from $208.00 to $211.00 and gave the company an “outperform” rating in a research note on Thursday, May 7th. Two investment 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. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $207.00.

The Hanover Insurance Group Stock Up 3.1%

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 firm has a market cap of $7.26 billion, a price-to-earnings ratio of 10.44 and a beta of 0.30. The firm has a 50 day moving average price of $189.48 and a 200-day moving average price of $180.87.

The Hanover Insurance Group (NYSE:THG) last posted its quarterly earnings results on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.14 by $1.11. The business had revenue of $1.70 billion for the quarter, compared to analysts’ expectations of $1.58 billion. The Hanover Insurance Group had a return on equity of 21.55% and a net margin of 10.77%.The firm’s quarterly revenue was up 6.1% compared to the same quarter last year. During the same quarter last year, the business earned $3.87 earnings per share. As a group, equities analysts predict that The Hanover Insurance Group, Inc. will post 18.36 EPS for the current fiscal year.

The Hanover Insurance Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, June 12th will be paid a $0.95 dividend. This represents a $3.80 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend is Friday, June 12th. The Hanover Insurance Group’s dividend payout ratio (DPR) is 19.12%.

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

Insider Activity at The Hanover Insurance Group

In related news, Director Francisco Aristeguieta sold 1,000 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $195.37, for a total transaction of $195,370.00. Following the completion of the sale, the director directly owned 4,053 shares of the company’s stock, valued at $791,834.61. The trade was a 19.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO John C. Roche sold 8,358 shares of the firm’s 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 completion of the transaction, the chief executive officer directly owned 141,011 shares in the company, valued at approximately $27,319,471.14. The trade was a 5.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 29,508 shares of company stock worth $5,704,651 over the last 90 days. Insiders own 2.80% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Norges Bank acquired a new position in shares of The Hanover Insurance Group during the 4th quarter worth about $83,817,000. 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 during the last quarter. AQR Capital Management LLC raised its position in shares of The Hanover Insurance Group by 37.8% in the 3rd quarter. AQR Capital Management LLC now owns 763,431 shares of the insurance provider’s stock valued at $137,967,000 after acquiring an additional 209,616 shares during the period. Invesco Ltd. raised its position in shares of The Hanover Insurance Group by 44.1% in the 4th 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 period. Finally, Balyasny Asset Management L.P. boosted its stake in The Hanover Insurance Group by 206.0% during the 3rd quarter. Balyasny Asset Management L.P. now owns 292,121 shares of the insurance provider’s stock worth $53,058,000 after acquiring an additional 196,655 shares during the last quarter. Institutional investors and hedge funds 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.