The Hanover Insurance Group (NYSE:THG) Sets New 52-Week High – Still a Buy?

Shares of The Hanover Insurance Group, Inc. (NYSE:THG) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $213.13 and last traded at $211.7750, with a volume of 434953 shares changing hands. The stock had previously closed at $212.61.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on THG shares. Morgan Stanley set a $195.00 price target on The Hanover Insurance Group in a report on Friday, May 1st. Weiss Ratings raised The Hanover Insurance Group from a “buy (b+)” rating to a “buy (a-)” rating in a report on Friday, May 22nd. Citizens Jmp raised their target price on The Hanover Insurance Group from $200.00 to $205.00 and gave the stock a “market outperform” rating in a research note on Thursday, April 30th. Oppenheimer lifted their target price on The Hanover Insurance Group from $205.00 to $220.00 and gave the company an “outperform” rating in a report on Thursday, May 21st. Finally, BMO Capital Markets downgraded shares of The Hanover Insurance Group from an “outperform” rating to a “market perform” rating and increased their price target for the stock from $194.00 to $203.00 in a report on Tuesday, May 19th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, The Hanover Insurance Group presently has a consensus rating of “Moderate Buy” and an average price target of $207.00.

The Hanover Insurance Group Price Performance

The business’s fifty day moving average price is $192.76 and its 200-day moving average price is $182.04. The company has a market capitalization of $7.49 billion, a P/E ratio of 10.78 and a beta of 0.30. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 0.22.

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

The Hanover Insurance Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders 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 annualized dividend and a dividend yield of 1.8%. The Hanover Insurance Group’s dividend payout ratio is 19.12%.

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

Insider Buying and Selling

In other The Hanover Insurance Group news, Director Cynthia Egan sold 3,400 shares of The Hanover Insurance Group stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $188.50, for a total transaction of $640,900.00. Following the transaction, the director directly owned 9,359 shares of the company’s stock, valued at approximately $1,764,171.50. This trade represents a 26.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO John C. Roche sold 8,358 shares of the business’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 transaction of $1,619,278.92. Following the completion of the sale, the chief executive officer owned 141,011 shares of the company’s stock, 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 a total of 29,508 shares of company stock worth $5,704,651 over the last ninety days. Corporate insiders own 2.80% of the company’s stock.

Hedge Funds Weigh In On The Hanover Insurance Group

A number of large investors have recently added to or reduced their stakes in the business. JPL Wealth Management LLC bought a new stake in The Hanover Insurance Group in the third quarter worth $26,000. Community Bank N.A. bought a new position in shares of The Hanover Insurance Group during the third quarter valued at about $27,000. McMillan Office Inc. purchased a new position in shares of The Hanover Insurance Group in the fourth quarter worth about $31,000. Entrust Financial LLC purchased a new position in shares of The Hanover Insurance Group in the fourth quarter worth about $33,000. Finally, Clearstead Advisors LLC lifted its stake in shares of The Hanover Insurance Group by 300.0% in the 3rd quarter. Clearstead Advisors LLC now owns 200 shares of the insurance provider’s stock valued at $36,000 after acquiring an additional 150 shares during the last quarter. Hedge funds and other 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.