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

The Hanover Insurance Group, Inc. (NYSE:THG)’s share price gapped up before the market opened 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 earnings per share 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 given a dividend of $0.90 per share. This represents a $3.60 dividend on an annualized basis and a yield of 2.17%. This is an increase from The Hanover Insurance Group’s previous quarterly dividend of $0.85. The ex-dividend date of this dividend was Friday, December 13th. The Hanover Insurance Group’s payout ratio is presently 35.71%.

Analyst Ratings Changes

A number of analysts have commented on the company. 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 research report on Thursday, November 21st. Barclays upgraded The Hanover Insurance Group to a “hold” rating in a research report on Friday, January 24th. Piper Sandler boosted their target price on The Hanover Insurance Group from $162.00 to $175.00 and gave the stock an “overweight” rating in a research report on Friday, November 1st. Bank of America upped their price objective on The Hanover Insurance Group from $158.00 to $170.00 and gave the company a “neutral” rating in a research report on Thursday, October 10th. Finally, Oppenheimer upped their price objective on The Hanover Insurance Group from $165.00 to $177.00 and gave the company an “outperform” rating in a research report on Friday, November 1st. Five analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $174.88.

Insider Activity at The Hanover Insurance Group

In other The Hanover Insurance Group news, EVP Jeffrey M. Farber sold 6,114 shares of the company’s stock in a transaction dated Monday, November 11th. The stock was sold at an average price of $162.36, for a total transaction of $992,669.04. Following the completion of the sale, the executive vice president now directly owns 54,091 shares in the company, valued at $8,782,214.76. This represents a 10.16 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 2.50% of the company’s stock.

Institutional Investors Weigh In On The Hanover Insurance Group

Several institutional investors and hedge funds have recently modified their holdings of THG. True Wealth Design LLC purchased a new stake in shares of The Hanover Insurance Group in the third quarter worth about $25,000. V Square Quantitative Management LLC purchased a new stake in shares of The Hanover Insurance Group in the third quarter worth about $26,000. Wilmington Savings Fund Society FSB purchased a new stake in shares of The Hanover Insurance Group in the third quarter worth about $30,000. Venturi Wealth Management LLC boosted its position in shares of The Hanover Insurance Group by 49.5% in the fourth quarter. Venturi Wealth Management LLC now owns 272 shares of the insurance provider’s stock worth $42,000 after buying an additional 90 shares during the period. Finally, Eagle Bay Advisors LLC boosted its position in shares of The Hanover Insurance Group by 502.1% in the fourth quarter. Eagle Bay Advisors LLC now owns 283 shares of the insurance provider’s stock worth $44,000 after buying an additional 236 shares during the period. Hedge funds and other institutional investors own 86.61% of the company’s stock.

The Hanover Insurance Group Price Performance

The company has a 50-day moving average price of $155.75 and a two-hundred day moving average price of $149.81. The company has a debt-to-equity ratio of 0.27, a current ratio of 0.40 and a quick ratio of 0.40. The company has a market cap of $5.99 billion, a PE ratio of 16.48 and a beta of 0.72.

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.