Citizens Jmp Forecasts Strong Price Appreciation for The Hanover Insurance Group (NYSE:THG) Stock

The Hanover Insurance Group (NYSE:THG) had its price objective raised by analysts at Citizens Jmp from $240.00 to $250.00 in a research note issued on Thursday, Benzinga reports. The firm currently has a “market outperform” rating on the insurance provider’s stock. Citizens Jmp‘s price objective suggests a potential upside of 6.85% from the stock’s current price.

Other equities analysts have also issued reports about the stock. Weiss Ratings upgraded shares of The Hanover Insurance Group from a “buy (a)” rating to a “buy (a+)” rating in a research note on Thursday, October 8th. Zacks Research upgraded shares of The Hanover Insurance Group from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 5th. Citigroup restated a “market outperform” rating on shares of The Hanover Insurance Group in a report on Thursday. Royal Bank Of Canada increased their target price on shares of The Hanover Insurance Group from $215.00 to $235.00 and gave the company a “sector perform” rating in a research report on Thursday, July 30th. Finally, Oppenheimer reiterated an “outperform” rating and set a $260.00 price target on shares of The Hanover Insurance Group in a research note on Tuesday, October 13th. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $232.86.

The Hanover Insurance Group Stock Up 0.3%

Shares of NYSE:THG traded up $0.72 on Thursday, hitting $233.98. 106,574 shares of the company’s stock were exchanged, compared to its average volume of 315,819. The firm’s 50-day moving average is $225.75 and its 200 day moving average is $199.40. The company has a market capitalization of $8.15 billion, a PE ratio of 11.16 and a beta of 0.23. The Hanover Insurance Group has a 1-year low of $166.54 and a 1-year high of $240.97. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.38 and a current ratio of 0.38.

The Hanover Insurance Group (NYSE:THG) last issued its earnings results on Wednesday, October 28th. The insurance provider reported $5.15 earnings per share for the quarter, topping the consensus estimate of $4.62 by $0.53. The business had revenue of $1.74 billion for the quarter, compared to analyst estimates of $1.81 billion. The Hanover Insurance Group had a return on equity of 21.72% and a net margin of 11.17%. During the same quarter last year, the company earned $5.09 EPS. Sell-side analysts predict that The Hanover Insurance Group will post 20.35 EPS for the current year.

Insider Transactions at The Hanover Insurance Group

In other The Hanover Insurance Group news, EVP Dennis Kerrigan sold 6,551 shares of the company’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $220.79, for a total transaction of $1,446,395.29. Following the completion of the sale, the executive vice president directly owned 12,003 shares of the company’s stock, valued at $2,650,142.37. This represents a 35.31% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jane Carlin sold 1,000 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $231.50, for a total value of $231,500.00. Following the sale, the director directly owned 2,270 shares of the company’s stock, valued at $525,505. The trade was a 30.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 9,655 shares of company stock worth $2,145,846. Corporate insiders own 2.80% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Mather Group LLC. purchased a new stake in shares of The Hanover Insurance Group in the third quarter valued at about $29,000. Clearstead Trust LLC acquired a new position in shares of The Hanover Insurance Group during the second quarter worth about $36,000. Elevation Wealth Partners LLC raised its holdings in The Hanover Insurance Group by 106.4% during the third quarter. Elevation Wealth Partners LLC now owns 194 shares of the insurance provider’s stock worth $42,000 after purchasing an additional 100 shares in the last quarter. Root Financial Partners LLC raised its holdings in The Hanover Insurance Group by 69.3% during the first quarter. Root Financial Partners LLC now owns 237 shares of the insurance provider’s stock worth $41,000 after purchasing an additional 97 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in The Hanover Insurance Group in the second quarter valued at about $51,000. 86.61% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting The Hanover Insurance Group

Here are the key news stories impacting The Hanover Insurance Group this week:

• Positive Sentiment: Hanover reported third-quarter operating earnings of $5.15 per diluted share, above the roughly $4.59–$4.62 analyst consensus and slightly ahead of $5.09 a year earlier. The earnings beat is the primary catalyst supporting the stock. Hanover Insurance Group Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Underlying insurance performance was solid: the combined ratio was 92.3%, improving to 85.5% excluding catastrophe losses, while the current accident-year loss and LAE ratio excluding catastrophes improved 1.9 points year over year. Net premiums written rose 3.1%, supported by renewal price increases across Personal Lines, Core Commercial and Specialty. The Hanover Reports Third Quarter Results
• Positive Sentiment: Net investment income increased 12.7% year over year to $131.9 million, helping support profitability. Strong recent share-price momentum and the earnings surprise history are also attracting style-focused investors. Why Hanover Insurance Group Is a Strong Momentum Stock
• Neutral Sentiment: Management reported net income of $172.6 million, or $4.86 per share, compared with $178.7 million, or $4.90 per share, in the prior-year quarter. Return on equity remained healthy at 19.4% on a net basis and 18.7% operationally.
• Negative Sentiment: Revenue of approximately $1.74 billion fell short of the roughly $1.81 billion analyst estimate, limiting the upside from the earnings beat. Hanover Reports Sales Below Estimates
• Negative Sentiment: Catastrophe losses totaled $109.7 million, or 6.8 points of the combined ratio, and book value per share declined 5.4% from June 30. Analysts have also questioned whether THG’s roughly 115% recent rally leaves the shares stretched.

The Hanover Insurance Group Company Profile

The Hanover Insurance Group, Inc is a holding company that provides property and casualty insurance products and services through a network of independent agents. Its principal operating subsidiary is The Hanover Insurance Company, which traces its roots to 1852 and is headquartered in Worcester, Massachusetts.

The company offers personal insurance products such as automobile, homeowners, condominium, renters and umbrella coverage. Its commercial insurance business serves small and midsize businesses with products that include commercial property, general liability, commercial automobile, workers’ compensation and other specialized coverages.

The Hanover also provides specialty insurance solutions for select industries and risks, including professional liability, management liability, marine and other niche commercial exposures.