Analyst Valuation and EPS Growth for The Hanover Insurance Group (NYSE:THG)

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Earnings results for The Hanover Insurance Group (NYSE:THG)

The Hanover Insurance Group, Inc. is expected* to report earnings on 10/27/2020 after market close. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 1 analysts’ forecasts, the consensus EPS forecast for the quarter is $2.24. The reported EPS for the same quarter last year was $2.31.

The Hanover Insurance Group last posted its quarterly earnings results on July 28th, 2020. The insurance provider reported $1.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.50 by $0.13. The company had revenue of $1.08 billion for the quarter, compared to analysts’ expectations of $1.13 billion. Its quarterly revenue was down 5.0% compared to the same quarter last year. The Hanover Insurance Group has generated $8.16 earnings per share over the last year and currently has a price-to-earnings ratio of 12.9. The Hanover Insurance Group has confirmed that its next quarterly earnings report will be published on Tuesday, October 27th, 2020.

Analyst Opinion on The Hanover Insurance Group (NYSE:THG)

4 Wall Street analysts have issued ratings and price targets for The Hanover Insurance Group in the last 12 months. Their average twelve-month price target is $129.00, predicting that the stock has a possible upside of 29.77%. The high price target for THG is $145.00 and the low price target for THG is $114.00. There are currently 1 hold rating and 3 buy ratings for the stock, resulting in a consensus rating of “Buy.”

The Hanover Insurance Group has received a consensus rating of Buy. The company’s average rating score is 2.75, and is based on 3 buy ratings, 1 hold rating, and no sell ratings. According to analysts’ consensus price target of $129.00, The Hanover Insurance Group has a forecasted upside of 29.8% from its current price of $99.41. The Hanover Insurance Group has only been the subject of 1 research reports in the past 90 days.

Dividend Strength: The Hanover Insurance Group (NYSE:THG)

The Hanover Insurance Group pays a meaningful dividend of 2.56%, higher than the bottom 25% of all stocks that pay dividends. The Hanover Insurance Group does not have a long track record of dividend growth. The dividend payout ratio of The Hanover Insurance Group is 31.86%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, The Hanover Insurance Group will have a dividend payout ratio of 32.10% next year. This indicates that The Hanover Insurance Group will be able to sustain or increase its dividend.

Insiders buying/selling: The Hanover Insurance Group (NYSE:THG)

In the past three months, The Hanover Insurance Group insiders have not sold or bought any company stock. Only 2.23% of the stock of The Hanover Insurance Group is held by insiders. 85.29% of the stock of The Hanover Insurance Group is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of The Hanover Insurance Group (NYSE:THG

Earnings for The Hanover Insurance Group are expected to decrease by -0.25% in the coming year, from $8.12 to $8.10 per share. The P/E ratio of The Hanover Insurance Group is 12.93, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 19.34. The P/E ratio of The Hanover Insurance Group is 12.93, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 18.21. The Hanover Insurance Group has a P/B Ratio of 1.34. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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