Stock Repurchase Plan Announced by The Hanover Insurance Group (NYSE:THG) Board of Directors

The Hanover Insurance Group (NYSE:THG) announced that its board has initiated a stock buyback program on Wednesday, May 13th, RTT News reports. The company plans to repurchase $700.00 million in outstanding shares. This repurchase authorization permits the insurance provider to repurchase up to 10.6% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

The Hanover Insurance Group Price Performance

THG stock traded down $0.61 during midday trading on Wednesday, reaching $188.99. The company had a trading volume of 281,619 shares, compared to its average volume of 279,488. The firm has a 50-day moving average price of $177.80 and a 200-day moving average price of $177.73. The company has a market capitalization of $6.61 billion, a P/E ratio of 9.51 and a beta of 0.31. The Hanover Insurance Group has a 1 year low of $160.70 and a 1 year high of $191.66. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.37 and a quick ratio of 0.37.

The Hanover Insurance Group (NYSE:THG) last posted its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $5.25 earnings per share for the quarter, beating the consensus estimate of $4.14 by $1.11. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%. The firm had revenue of $1.70 billion for the quarter, compared to analysts’ expectations of $1.58 billion. During the same quarter last year, the company posted $3.87 EPS. The business’s quarterly revenue was up 6.1% on a year-over-year basis. On average, research analysts anticipate that The Hanover Insurance Group will post 18.45 earnings per share for the current fiscal year.

The Hanover Insurance Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Friday, March 13th were given a dividend of $0.95 per share. The ex-dividend date was Friday, March 13th. This represents a $3.80 dividend on an annualized basis and a yield of 2.0%. The Hanover Insurance Group’s dividend payout ratio (DPR) is presently 19.12%.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on THG shares. Citigroup restated an “outperform” rating on shares of The Hanover Insurance Group in a research report on Thursday, April 30th. Piper Sandler increased their price objective on The Hanover Insurance Group from $204.00 to $212.00 and gave the stock an “overweight” rating in a research report on Friday, May 1st. Zacks Research raised The Hanover Insurance Group from a “hold” rating to a “strong-buy” rating in a research note on Monday, May 4th. Keefe, Bruyette & Woods boosted their target price on The Hanover Insurance Group from $208.00 to $211.00 and gave the stock an “outperform” rating in a research report on Thursday, May 7th. Finally, Wall Street Zen lowered The Hanover Insurance Group from a “buy” rating to a “hold” rating in a research note on Saturday, February 28th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, The Hanover Insurance Group presently has an average rating of “Moderate Buy” and a consensus target price of $203.60.

Insider Buying and Selling at The Hanover Insurance Group

In other news, EVP Denise Lowsley sold 1,062 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $188.43, for a total transaction of $200,112.66. Following the transaction, the executive vice president directly owned 3,883 shares in the company, valued at approximately $731,673.69. This represents a 21.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jane D. Carlin sold 1,200 shares of the firm’s stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $180.91, for a total value of $217,092.00. Following the transaction, the director directly owned 2,423 shares in the company, valued at approximately $438,344.93. This represents a 33.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 5,662 shares of company stock worth $1,058,105 over the last 90 days. Corporate insiders own 2.80% of the company’s stock.

The Hanover Insurance Group Company Profile

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.