Is Hanover Insurance Stock a Good Investment?
Hanover Insurance Investment Advice | THG |
- Examine Hanover Insurance's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Hanover Insurance's leadership team and their track record. Good management can help Hanover Insurance navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Property & Casualty Insurance space and any emerging trends that could impact Hanover Insurance's business and its evolving consumer preferences.
- Compare Hanover Insurance's performance and market position to its competitors. Analyze how Hanover Insurance is positioned in terms of product offerings, innovation, and market share.
- Check if Hanover Insurance pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Hanover Insurance's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in The Hanover Insurance stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if The Hanover Insurance is a good investment.
Sell | Buy |
Strong Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Hanover Insurance Stock
Researching Hanover Insurance's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 90.0% of the company shares are owned by institutional investors. The book value of Hanover Insurance was at this time reported as 79.16. The company recorded earning per share (EPS) of 11.68. Hanover Insurance last dividend was issued on the 14th of March 2025. The entity had 5:4 split on the November 8, 2013.
To determine if Hanover Insurance is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Hanover Insurance's research are outlined below:
| The Hanover Insurance has 784.1 M in debt with debt to equity (D/E) ratio of 0.34, which is OK given its current industry classification. Hanover Insurance has a current ratio of 0.35, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Hanover to invest in growth at high rates of return. | |
| Over 90.0% of Hanover Insurance shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Allstate Reports 73M After-Tax Catastrophe Losses in February 2025 |
Hanover Insurance Quarterly Cost Of Revenue |
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Hanover Insurance uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in The Hanover Insurance. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Hanover Insurance's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 31st of January 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 31st of January 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Hanover Insurance's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Hanover Insurance's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2012-08-01 | 2012-06-30 | 0.19 | 0.22 | 0.03 | 15 | ||
2009-05-07 | 2009-03-31 | 0.44 | 0.51 | 0.07 | 15 | ||
2003-10-27 | 2003-09-30 | 0.43 | 0.5 | 0.07 | 16 | ||
2003-04-28 | 2003-03-31 | 0.38 | 0.45 | 0.07 | 18 | ||
2002-04-29 | 2002-03-31 | 0.77 | 0.85 | 0.08 | 10 | ||
2005-04-28 | 2005-03-31 | 0.77 | 0.86 | 0.09 | 11 | ||
2014-10-29 | 2014-09-30 | 0.96 | 1.06 | 0.1 | 10 | ||
2009-11-02 | 2009-09-30 | 0.99 | 0.89 | -0.1 | 10 |
Hanover Insurance Target Price Consensus
Hanover target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Hanover Insurance's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 7 | Buy |
Most Hanover analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Hanover stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Hanover Insurance, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationHanover Insurance Target Price Projection
Hanover Insurance's current and average target prices are 172.64 and 176.29, respectively. The current price of Hanover Insurance is the price at which The Hanover Insurance is currently trading. On the other hand, Hanover Insurance's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Hanover Insurance Market Quote on 25th of March 2025
Target Price
Analyst Consensus On Hanover Insurance Target Price
Hanover Insurance Analyst Ratings
Hanover Insurance's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Hanover Insurance stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Hanover Insurance's financials, market performance, and future outlook by experienced professionals. Hanover Insurance's historical ratings below, therefore, can serve as a valuable tool for investors.Know Hanover Insurance's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Hanover Insurance is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading The Hanover Insurance backward and forwards among themselves. Hanover Insurance's institutional investor refers to the entity that pools money to purchase Hanover Insurance's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Victory Capital Management Inc. | 2024-12-31 | 780.6 K | Ameriprise Financial Inc | 2024-12-31 | 662.8 K | Geode Capital Management, Llc | 2024-12-31 | 651.4 K | Fuller & Thaler Asset Management Inc | 2024-12-31 | 625.5 K | International Assets Investment Management, Llc | 2024-09-30 | 552.5 K | Macquarie Group Ltd | 2024-12-31 | 488.4 K | London Company Of Virginia | 2024-12-31 | 469.6 K | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 452.9 K | Norges Bank | 2024-12-31 | 439.2 K | Vanguard Group Inc | 2024-12-31 | 3.6 M | Blackrock Inc | 2024-12-31 | 3.4 M |
Hanover Insurance's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 6.2 B.Market Cap |
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Hanover Insurance's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.03 | 0.03 | |
| Return On Capital Employed | 0.03 | 0.04 | |
| Return On Assets | 0.03 | 0.03 | |
| Return On Equity | 0.15 | 0.16 |
Determining Hanover Insurance's profitability involves analyzing its financial statements and using various financial metrics to determine if Hanover Insurance is a good buy. For example, gross profit margin measures Hanover Insurance's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Hanover Insurance's profitability and make more informed investment decisions.
Evaluate Hanover Insurance's management efficiency
Hanover Insurance has Return on Asset of 0.0239 % which means that on every $100 spent on assets, it made $0.0239 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1603 %, implying that it generated $0.1603 on every 100 dollars invested. Hanover Insurance's management efficiency ratios could be used to measure how well Hanover Insurance manages its routine affairs as well as how well it operates its assets and liabilities. The Hanover Insurance's current Return On Tangible Assets is estimated to increase to 0.03. The Hanover Insurance's current Return On Capital Employed is estimated to increase to 0.04. At this time, Hanover Insurance's Other Current Assets are most likely to decrease significantly in the upcoming years. The Hanover Insurance's current Net Tangible Assets is estimated to increase to about 2.9 B, while Non Current Assets Total are projected to decrease to roughly 335.4 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 79.16 | 45.32 | |
| Tangible Book Value Per Share | 74.18 | 42.96 | |
| Enterprise Value Over EBITDA | 13.87 | 13.09 | |
| Price Book Value Ratio | 1.95 | 2.05 | |
| Enterprise Value Multiple | 13.87 | 13.09 | |
| Price Fair Value | 1.95 | 2.05 | |
| Enterprise Value | 5.3 B | 5.6 B |
Examining the leadership quality of The Hanover Insurance offers valuable insights into its operational efficiency and financial health. This analysis assists investors in making informed decisions regarding the stock.
Basic technical analysis of Hanover Stock
As of the 25th of March, Hanover Insurance retains the Risk Adjusted Performance of 0.1018, downside deviation of 1.24, and Market Risk Adjusted Performance of 10.97. Concerning fundamental indicators, the technical analysis model lets you check existing technical drivers of The Hanover Insurance, as well as the relationship between them. Please check out Hanover Insurance variance, as well as the relationship between the maximum drawdown and semi variance to decide if Hanover Insurance is priced fairly, providing market reflects its last-minute price of 172.64 per share. Given that The Hanover Insurance has jensen alpha of 0.1594, we strongly advise you to confirm Hanover Insurance's regular market performance to make sure the company can sustain itself at a future point.Hanover Insurance's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Hanover Insurance insiders, such as employees or executives, is commonly permitted as long as it does not rely on Hanover Insurance's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Hanover Insurance insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Hanover Insurance's Outstanding Corporate Bonds
Hanover Insurance issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Hanover Insurance uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Hanover bonds can be classified according to their maturity, which is the date when The Hanover Insurance has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| HANOVER INS GROUP Corp BondUS410867AF22 | View | |
| US410867AG05 Corp BondUS410867AG05 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| HANOVER INS GROUP Corp BondUS410867AA35 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Hanover Insurance's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Hanover Insurance's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1018 | |||
| Market Risk Adjusted Performance | 10.97 | |||
| Mean Deviation | 1.24 | |||
| Semi Deviation | 1.13 | |||
| Downside Deviation | 1.24 | |||
| Coefficient Of Variation | 924.92 | |||
| Standard Deviation | 1.56 | |||
| Variance | 2.44 | |||
| Information Ratio | 0.1251 | |||
| Jensen Alpha | 0.1594 | |||
| Total Risk Alpha | 0.222 | |||
| Sortino Ratio | 0.1574 | |||
| Treynor Ratio | 10.96 | |||
| Maximum Drawdown | 6.7 | |||
| Value At Risk | (1.75) | |||
| Potential Upside | 2.73 | |||
| Downside Variance | 1.54 | |||
| Semi Variance | 1.28 | |||
| Expected Short fall | (1.53) | |||
| Skewness | 0.5665 | |||
| Kurtosis | 0.2676 |
| Risk Adjusted Performance | 0.1018 | |||
| Market Risk Adjusted Performance | 10.97 | |||
| Mean Deviation | 1.24 | |||
| Semi Deviation | 1.13 | |||
| Downside Deviation | 1.24 | |||
| Coefficient Of Variation | 924.92 | |||
| Standard Deviation | 1.56 | |||
| Variance | 2.44 | |||
| Information Ratio | 0.1251 | |||
| Jensen Alpha | 0.1594 | |||
| Total Risk Alpha | 0.222 | |||
| Sortino Ratio | 0.1574 | |||
| Treynor Ratio | 10.96 | |||
| Maximum Drawdown | 6.7 | |||
| Value At Risk | (1.75) | |||
| Potential Upside | 2.73 | |||
| Downside Variance | 1.54 | |||
| Semi Variance | 1.28 | |||
| Expected Short fall | (1.53) | |||
| Skewness | 0.5665 | |||
| Kurtosis | 0.2676 |
Consider Hanover Insurance's intraday indicators
Hanover Insurance intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Hanover Insurance stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 2852.72 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 172.31 | |||
| Day Typical Price | 172.42 | |||
| Price Action Indicator | 0.33 |
Hanover Insurance Corporate Filings
F4 | 4th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 25th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10K | 24th of February 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
| 11th of February 2025 Other Reports | ViewVerify |
Hanover Stock media impact
Far too much social signal, news, headlines, and media speculation about Hanover Insurance that are available to investors today. That information is available publicly through Hanover media outlets and privately through word of mouth or via Hanover internal channels. However, regardless of the origin, that massive amount of Hanover data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Hanover Insurance news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Hanover Insurance relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Hanover Insurance's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Hanover Insurance alpha.
Hanover Insurance Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Hanover Insurance can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Hanover Insurance Historical Investor Sentiment
Investor biases related to Hanover Insurance's public news can be used to forecast risks associated with an investment in Hanover. The trend in average sentiment can be used to explain how an investor holding Hanover can time the market purely based on public headlines and social activities around The Hanover Insurance. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Hanover Insurance's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Hanover Insurance and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Hanover Insurance news discussions. The higher the estimate score, the more favorable the investor's outlook on Hanover Insurance.
Hanover Insurance Maximum Pain Price Across May 16th 2025 Option Contracts
Hanover Insurance's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Hanover Insurance close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Hanover Insurance's options.
Hanover Insurance Corporate Directors
| Martin Hughes | Independent Director | Profile | |
| Harriett Taggart | Independent Director | Profile | |
| Theodore Bunting | Independent Director | Profile | |
| Wendell Knox | Independent Director | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in The Hanover Insurance. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hanover Insurance. If investors know Hanover will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hanover Insurance listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.535 | Dividend Share 3.45 | Earnings Share 11.68 | Revenue Per Share | Quarterly Revenue Growth 0.036 |
The market value of Hanover Insurance is measured differently than its book value, which is the value of Hanover that is recorded on the company's balance sheet. Investors also form their own opinion of Hanover Insurance's value that differs from its market value or its book value, called intrinsic value, which is Hanover Insurance's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hanover Insurance's market value can be influenced by many factors that don't directly affect Hanover Insurance's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Hanover Insurance's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Hanover Insurance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hanover Insurance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.