The Hanover Insurance Group (NYSE:THG) Shares Gap Up on Earnings Beat

The Hanover Insurance Group, Inc. (NYSE:THG) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $152.95, but opened at $159.11. The Hanover Insurance Group shares last traded at $159.57, with a volume of 19,552 shares traded.

The insurance provider reported $5.32 EPS for the quarter, beating analysts’ consensus estimates of $3.45 by $1.87. The Hanover Insurance Group had a return on equity of 15.53% and a net margin of 5.92%.

The Hanover Insurance Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, December 27th. Shareholders of record on Friday, December 13th were issued a dividend of $0.90 per share. This represents a $3.60 dividend on an annualized basis and a yield of 2.17%. The ex-dividend date of this dividend was Friday, December 13th. This is an increase from The Hanover Insurance Group’s previous quarterly dividend of $0.85. The Hanover Insurance Group’s dividend payout ratio (DPR) is currently 35.71%.

Analysts Set New Price Targets

A number of research firms have commented on THG. Janney Montgomery Scott downgraded The Hanover Insurance Group from a “buy” rating to a “neutral” rating and set a $176.00 target price on the stock. in a report on Thursday, November 21st. Morgan Stanley increased their target price on The Hanover Insurance Group from $165.00 to $170.00 and gave the stock an “equal weight” rating in a report on Thursday. Oppenheimer increased their target price on The Hanover Insurance Group from $165.00 to $177.00 and gave the stock an “outperform” rating in a report on Friday, November 1st. Piper Sandler increased their target price on The Hanover Insurance Group from $162.00 to $175.00 and gave the stock an “overweight” rating in a report on Friday, November 1st. Finally, Barclays upgraded The Hanover Insurance Group to a “hold” rating in a research report on Friday, January 24th. Five equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $174.88.

Insider Activity at The Hanover Insurance Group

In related news, EVP Jeffrey M. Farber sold 6,114 shares of the firm’s stock in a transaction that occurred on Monday, November 11th. The stock was sold at an average price of $162.36, for a total value of $992,669.04. Following the sale, the executive vice president now directly owns 54,091 shares in the company, valued at $8,782,214.76. This trade represents a 10.16 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 2.50% of the stock is owned by insiders.

Institutional Trading of The Hanover Insurance Group

Large investors have recently added to or reduced their stakes in the business. True Wealth Design LLC acquired a new stake in The Hanover Insurance Group in the 3rd quarter valued at approximately $25,000. V Square Quantitative Management LLC acquired a new stake in The Hanover Insurance Group in the 3rd quarter valued at approximately $26,000. Wilmington Savings Fund Society FSB acquired a new position in shares of The Hanover Insurance Group during the 3rd quarter valued at $30,000. Venturi Wealth Management LLC increased its position in shares of The Hanover Insurance Group by 49.5% during the 4th quarter. Venturi Wealth Management LLC now owns 272 shares of the insurance provider’s stock valued at $42,000 after purchasing an additional 90 shares during the period. Finally, Eagle Bay Advisors LLC increased its position in shares of The Hanover Insurance Group by 502.1% during the 4th quarter. Eagle Bay Advisors LLC now owns 283 shares of the insurance provider’s stock valued at $44,000 after purchasing an additional 236 shares during the period. 86.61% of the stock is currently owned by institutional investors and hedge funds.

The Hanover Insurance Group Trading Up 3.7 %

The company has a market capitalization of $5.99 billion, a price-to-earnings ratio of 16.48 and a beta of 0.72. The firm has a 50-day moving average price of $155.75 and a 200-day moving average price of $149.81. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 0.27.

The Hanover Insurance Group Company Profile

The Hanover Insurance Group, Inc, through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates through four segments: Core Commercial, Specialty, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, and other commercial lines coverage.