The Hanover Insurance Stock Buy Hold or Sell Recommendation
| THG Stock | USD 163.60 0.86 0.53% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding The Hanover Insurance is 'Buy'. Macroaxis provides Hanover Insurance buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding THG positions.
Check out Hanover Insurance Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Hanover and provide practical buy, sell, or hold advice based on investors' constraints. 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.
Hanover |
Execute Hanover Insurance Buy or Sell Advice
The Hanover recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on The Hanover Insurance. Macroaxis does not own or have any residual interests in The Hanover Insurance or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Hanover Insurance's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Hanover Insurance Trading Alerts and Improvement Suggestions
| The Hanover Insurance has 783.2 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. | |
| Hanover Insurance has a poor financial position based on the latest SEC disclosures | |
| Over 88.0% of Hanover Insurance shares are owned by institutional investors | |
| Latest headline from benzinga.com: This Ulta Beauty Analyst Is No Longer Bullish Here Are Top 5 Downgrades For Thursday |
Hanover Insurance Returns Distribution Density
The distribution of Hanover Insurance's historical returns is an attempt to chart the uncertainty of Hanover Insurance's future price movements. The chart of the probability distribution of Hanover Insurance daily returns describes the distribution of returns around its average expected value. We use The Hanover Insurance price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Hanover Insurance returns is essential to provide solid investment advice for Hanover Insurance.
| Mean Return | 0.30 | Value At Risk | -1.52 | Potential Upside | 2.28 | Standard Deviation | 1.30 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Hanover Insurance historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Hanover Stock Institutional Investors
| Shares | Dimensional Fund Advisors, Inc. | 2024-09-30 | 793.9 K | Ameriprise Financial Inc | 2024-06-30 | 681.7 K | Alliancebernstein L.p. | 2024-06-30 | 663 K | Geode Capital Management, Llc | 2024-09-30 | 660.3 K | Fuller & Thaler Asset Management Inc | 2024-09-30 | 621.4 K | International Assets Investment Management, Llc | 2024-09-30 | 552.5 K | Macquarie Group Ltd | 2024-06-30 | 539.6 K | London Company Of Virginia | 2024-06-30 | 444.9 K | Norges Bank | 2024-06-30 | 432.5 K | Vanguard Group Inc | 2024-09-30 | 3.6 M | Blackrock Inc | 2024-06-30 | 3.3 M |
Hanover Insurance Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (805M) | (95.1M) | 110.3M | 74.1M | 11.1M | 11.7M | |
| Free Cash Flow | 589.6M | 692.7M | 815.7M | 704.5M | 349.8M | 250.8M | |
| Other Non Cash Items | (111.1M) | (17.6M) | (283.9M) | 49.6M | 10.8M | 10.3M | |
| Dividends Paid | 386.2M | 99.5M | 102.2M | 108.9M | 117.2M | 68.6M | |
| Capital Expenditures | 13.3M | 14.9M | 8M | 17.8M | 11.9M | 11.3M | |
| Net Income | 425.1M | 358.7M | 418.7M | 116M | 33.5M | 31.8M | |
| End Period Cash Flow | 215.7M | 120.6M | 230.9M | 305M | 316.1M | 431.9M | |
| Depreciation | 21.6M | 18.2M | 16.9M | 12.9M | 14.2M | 20.5M | |
| Investments | (251.4M) | (511.6M) | (548.3M) | (853.9M) | (228.5M) | (239.9M) | |
| Change Receivables | (257.8M) | (144M) | (156.3M) | (173.9M) | (156.5M) | (164.3M) | |
| Change To Netincome | 31.1M | (1.7M) | (76.2M) | 89M | 80.1M | 84.1M |
Hanover Insurance Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Hanover Insurance or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Hanover Insurance's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Hanover stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.18 | |
β | Beta against Dow Jones | 0.95 | |
σ | Overall volatility | 1.31 | |
Ir | Information ratio | 0.13 |
Hanover Insurance Volatility Alert
The Hanover Insurance has relatively low volatility with skewness of 0.47 and kurtosis of 1.01. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hanover Insurance's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hanover Insurance's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Hanover Insurance Fundamentals Vs Peers
Comparing Hanover Insurance's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Hanover Insurance's direct or indirect competition across all of the common fundamentals between Hanover Insurance and the related equities. This way, we can detect undervalued stocks with similar characteristics as Hanover Insurance or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Hanover Insurance's fundamental indicators could also be used in its relative valuation, which is a method of valuing Hanover Insurance by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Hanover Insurance to competition |
| Fundamentals | Hanover Insurance | Peer Average |
| Return On Equity | 0.15 | -0.31 |
| Return On Asset | 0.0215 | -0.14 |
| Profit Margin | 0.06 % | (1.27) % |
| Operating Margin | 0.09 % | (5.51) % |
| Current Valuation | 6.25 B | 16.62 B |
| Shares Outstanding | 36.03 M | 571.82 M |
| Shares Owned By Insiders | 0.76 % | 10.09 % |
| Shares Owned By Institutions | 88.38 % | 39.21 % |
| Number Of Shares Shorted | 248.28 K | 4.71 M |
| Price To Earning | 18.15 X | 28.72 X |
| Price To Book | 2.05 X | 9.51 X |
| Price To Sales | 0.95 X | 11.42 X |
| Revenue | 5.99 B | 9.43 B |
| Gross Profit | 752 M | 27.38 B |
| EBITDA | 75.2 M | 3.9 B |
| Net Income | 33.5 M | 570.98 M |
| Cash And Equivalents | 305 M | 2.7 B |
| Cash Per Share | 4.63 X | 5.01 X |
| Total Debt | 783.2 M | 5.32 B |
| Debt To Equity | 0.34 % | 48.70 % |
| Current Ratio | 0.36 X | 2.16 X |
| Book Value Per Share | 79.94 X | 1.93 K |
| Cash Flow From Operations | 361.7 M | 971.22 M |
| Short Ratio | 1.44 X | 4.00 X |
| Earnings Per Share | 10.09 X | 3.12 X |
| Price To Earnings To Growth | (23.25) X | 4.89 X |
| Target Price | 172.33 | |
| Number Of Employees | 4.8 K | 18.84 K |
| Beta | 0.71 | -0.15 |
| Market Capitalization | 5.9 B | 19.03 B |
| Total Asset | 14.61 B | 29.47 B |
| Retained Earnings | 2.91 B | 9.33 B |
| Annual Yield | 0.02 % |
Note: Disposition of 1823 shares by Denise Lowsley of Hanover Insurance at 162.32 subject to Rule 16b-3 [view details]
Hanover Insurance Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Hanover . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Hanover Insurance Buy or Sell Advice
When is the right time to buy or sell The Hanover Insurance? Buying financial instruments such as Hanover Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Hanover Insurance Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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 10.656 | Dividend Share 3.4 | Earnings Share 10.09 | Revenue Per Share 172.438 | Quarterly Revenue Growth 0.032 |
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.
Please note, there is a significant difference between Hanover Insurance's value and its price as these two are different measures arrived at by different 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.