The Hanover Insurance Group (NYSE:THG) Releases Earnings Results, Beats Estimates By $1.47 EPS

The Hanover Insurance Group (NYSE:THG) issued its quarterly earnings data on Tuesday. The insurance provider reported $5.31 earnings per share for the quarter, topping analysts’ consensus estimates of $3.84 by $1.47, Zacks reports. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%. The business had revenue of $1.73 billion during the quarter, compared to analysts’ expectations of $1.65 billion.

The Hanover Insurance Group Stock Performance

Shares of NYSE:THG traded up $4.66 on Tuesday, hitting $224.18. 318,714 shares of the company were exchanged, compared to its average volume of 328,705. The Hanover Insurance Group has a one year low of $164.85 and a one year high of $225.29. The firm has a market capitalization of $7.84 billion, a price-to-earnings ratio of 11.28 and a beta of 0.28. The company’s 50 day moving average price is $204.06 and its two-hundred day moving average price is $186.25. 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 Hanover Insurance Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, June 12th were given a $0.95 dividend. This represents a $3.80 annualized dividend and a yield of 1.7%. The ex-dividend date was Friday, June 12th. The Hanover Insurance Group’s dividend payout ratio (DPR) is currently 19.12%.

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

Insider Buying and Selling

In other The Hanover Insurance Group news, CEO John C. Roche sold 8,358 shares of the firm’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 value of $1,619,278.92. Following the completion of the sale, the chief executive officer owned 141,011 shares in the company, valued at approximately $27,319,471.14. This trade represents a 5.60% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Cynthia Egan sold 3,400 shares of The Hanover Insurance Group stock in a transaction on Friday, May 1st. The stock was sold at an average price of $188.50, for a total transaction of $640,900.00. Following the sale, the director owned 9,359 shares in the company, valued at $1,764,171.50. This represents a 26.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 29,508 shares of company stock worth $5,704,651. 2.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On The Hanover Insurance Group

Several large investors have recently modified their holdings of THG. Invesco Ltd. grew 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 period. Corient Private Wealth LLC grew its holdings in shares of The Hanover Insurance Group by 126.6% during the fourth quarter. Corient Private Wealth LLC now owns 7,613 shares of the insurance provider’s stock worth $1,391,000 after purchasing an additional 4,254 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its stake in shares of The Hanover Insurance Group by 29.8% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 10,231 shares of the insurance provider’s stock valued at $1,870,000 after buying an additional 2,348 shares in the last quarter. EP Wealth Advisors LLC acquired a new stake in shares of The Hanover Insurance Group in the fourth quarter valued at $321,000. Finally, Mackenzie Financial Corp raised its holdings in shares of The Hanover Insurance Group by 7.4% in the fourth quarter. Mackenzie Financial Corp now owns 7,272 shares of the insurance provider’s stock valued at $1,337,000 after buying an additional 498 shares during the last quarter. 86.61% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on THG shares. Keefe, Bruyette & Woods reiterated a “market perform” rating and issued a $220.00 target price (up from $211.00) on shares of The Hanover Insurance Group in a research note on Wednesday, July 8th. Citizens Jmp boosted their target price on shares of The Hanover Insurance Group from $205.00 to $225.00 and gave the stock a “market outperform” rating in a research report on Friday, July 10th. Morgan Stanley upped their price target on shares of The Hanover Insurance Group from $220.00 to $225.00 and gave the company an “equal weight” rating in a report on Wednesday, July 8th. Weiss Ratings raised The Hanover Insurance Group from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Friday, May 22nd. Finally, Oppenheimer lifted their price objective on The Hanover Insurance Group from $205.00 to $220.00 and gave the stock an “outperform” rating in a research note on Thursday, May 21st. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $218.29.

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.