The Hanover Insurance Group (NYSE:THG) Reaches New 1-Year High – Time to Buy?

The Hanover Insurance Group, Inc. (NYSE:THG) reached a new 52-week high on Tuesday . The stock 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.

Wall Street Analyst Weigh In

A number of research firms recently commented on THG. Citigroup reiterated an “outperform” rating on shares of The Hanover Insurance Group in a research report on Friday, July 10th. Royal Bank Of Canada raised their price objective on shares of The Hanover Insurance Group from $215.00 to $235.00 and gave the stock a “sector perform” rating in a report on Thursday. Zacks Research cut shares of The Hanover Insurance Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 7th. Piper Sandler cut shares of The Hanover Insurance Group from an “overweight” rating to a “neutral” rating and set a $220.00 price target on the stock. in a research note on Wednesday, July 15th. Finally, Citizens Jmp upped their price objective on The Hanover Insurance Group from $225.00 to $240.00 and gave the stock a “market outperform” rating in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $223.29.

The Hanover Insurance Group Stock Performance

The firm’s 50-day simple moving average is $207.60 and its two-hundred day simple moving average is $188.24. 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 company has a market cap of $8.08 billion, a PE ratio of 11.08 and a beta of 0.28.

The Hanover Insurance Group (NYSE:THG) last released its quarterly earnings data on Tuesday, July 28th. The insurance provider reported $5.31 earnings per share for the quarter, beating analysts’ consensus estimates of $3.84 by $1.47. The company had revenue of $1.73 billion during the quarter, compared to analysts’ expectations of $1.65 billion. The Hanover Insurance Group had a net margin of 11.17% and a return on equity of 21.72%. The firm’s revenue for the quarter was up 4.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $4.35 earnings per share. As a group, research analysts anticipate that The Hanover Insurance Group, Inc. will post 19.15 earnings per share for the current fiscal year.

The Hanover Insurance Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, June 12th were given a dividend of $0.95 per share. The ex-dividend date was Friday, June 12th. This represents a $3.80 dividend on an annualized basis and a yield of 1.6%. The Hanover Insurance Group’s dividend payout ratio is currently 18.14%.

The Hanover Insurance Group declared that its board has authorized a share 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 purchase up to 10.6% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its stock is undervalued.

Insider Activity at The Hanover Insurance Group

In related news, CEO John C. Roche sold 8,358 shares of the company’s stock in a transaction dated 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 owned 141,011 shares in the company, valued at $27,319,471.14. This represents a 5.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Dennis Francis Kerrigan sold 6,262 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $192.99, for a total transaction of $1,208,503.38. Following the completion of the transaction, the executive vice president directly owned 11,988 shares in the company, valued at $2,313,564.12. This represents a 34.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 26,108 shares of company stock valued at $5,063,751. 2.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On The Hanover Insurance Group

Hedge funds have recently made changes to their positions in the company. JPL Wealth Management LLC acquired a new stake in shares of The Hanover Insurance Group in the third quarter worth approximately $26,000. McMillan Office Inc. acquired a new stake in The Hanover Insurance Group during the 4th quarter worth $31,000. Entrust Financial LLC acquired a new stake in shares of The Hanover Insurance Group in the fourth quarter valued at about $33,000. Root Financial Partners LLC raised its position 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 buying an additional 97 shares during the last quarter. Finally, IFP Advisors Inc lifted its stake in shares of The Hanover Insurance Group by 146.2% in the fourth quarter. IFP Advisors Inc now owns 256 shares of the insurance provider’s stock worth $47,000 after buying an additional 152 shares in the last quarter. 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.