The Hanover Insurance Group (NYSE:THG) Posts Quarterly Earnings Results, Beats Expectations By $1.43 EPS

The Hanover Insurance Group (NYSE:THG) posted its quarterly earnings data on Tuesday. The insurance provider reported $5.31 EPS for the quarter, topping analysts’ consensus estimates of $3.88 by $1.43, Zacks reports. The Hanover Insurance Group had a return on equity of 21.95% and a net margin of 11.17%.The business had revenue of $1.73 billion for the quarter, compared to analyst estimates of $1.65 billion. During the same period in the previous year, the company posted $4.35 earnings per share. The firm’s revenue for the quarter was up 4.6% on a year-over-year basis.

The Hanover Insurance Group Stock Performance

THG stock traded down $4.05 during midday trading on Thursday, hitting $228.29. The stock had a trading volume of 71,053 shares, compared to its average volume of 328,119. The Hanover Insurance Group has a 52 week low of $165.17 and a 52 week high of $235.15. 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 stock has a 50-day simple moving average of $205.43 and a 200 day simple moving average of $186.97. The firm has a market capitalization of $7.99 billion, a price-to-earnings ratio of 10.89 and a beta of 0.28.

The Hanover Insurance Group Announces Dividend

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 dividend on an annualized basis and a dividend yield of 1.7%. The Hanover Insurance Group’s payout ratio is currently 19.12%.

Wall Street Analyst Weigh In

A number of analysts have issued reports on THG shares. Morgan Stanley raised their target price on 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. Keefe, Bruyette & Woods reissued a “market perform” rating and issued a $220.00 price objective (up from $211.00) on shares of The Hanover Insurance Group in a research report on Wednesday, July 8th. Royal Bank Of Canada set a $235.00 price objective on shares of The Hanover Insurance Group in a research note on Thursday. Weiss Ratings raised shares of The Hanover Insurance Group from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Friday, May 22nd. Finally, Zacks Research cut shares of The Hanover Insurance Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 7th. One research 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 stock. According to data from MarketBeat, The Hanover Insurance Group has a consensus rating of “Moderate Buy” and an average target price of $223.29.

Insider Buying and Selling

In other news, Director Cynthia Egan sold 3,400 shares of the stock in a transaction on Friday, May 1st. The shares were sold at an average price of $188.50, for a total value of $640,900.00. Following the completion of the transaction, the director owned 9,359 shares in the company, valued at approximately $1,764,171.50. This represents a 26.65% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO John C. Roche sold 8,358 shares of The Hanover Insurance Group 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 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 29,508 shares of company stock worth $5,704,651. Insiders own 2.80% of the company’s stock.

Institutional Investors Weigh In On The Hanover Insurance Group

Large investors have recently modified their holdings of the stock. Millennium Management LLC boosted its stake in The Hanover Insurance Group by 61.0% in the 1st quarter. Millennium Management LLC now owns 88,367 shares of the insurance provider’s stock valued at $15,371,000 after buying an additional 33,495 shares in the last quarter. NewEdge Advisors LLC boosted its position in The Hanover Insurance Group by 1,568.9% in the first quarter. NewEdge Advisors LLC now owns 751 shares of the insurance provider’s stock valued at $131,000 after buying an additional 706 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in shares of The Hanover Insurance Group by 21.6% in the first quarter. Goldman Sachs Group Inc. now owns 218,753 shares of the insurance provider’s stock valued at $38,052,000 after acquiring an additional 38,905 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in The Hanover Insurance Group by 6.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 129,031 shares of the insurance provider’s stock worth $22,445,000 after acquiring an additional 7,712 shares during the last quarter. Finally, Invesco Ltd. raised its position in The Hanover Insurance Group by 7.7% in the 2nd quarter. Invesco Ltd. now owns 283,484 shares of the insurance provider’s stock valued at $48,155,000 after purchasing an additional 20,294 shares during the last quarter. 86.61% of the stock is currently owned by institutional investors.

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

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.