The Hanover Insurance Group, Inc. (NYSE: THG) shares fell in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
Analysts at Keefe, Bruyette & Woods reiterated an Underperform rating on shares of The Hanover Insurance Group, Inc. (NYSE: THG) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Underperform on the shares, The Hanover Insurance Group, Inc. has a 52-week high of $91.99. As a means of comparison, a number of other analysts have spoken on the company recently, and The Hanover Insurance Group, Inc. has earned a consensus one-year price target of $96.50, above the opening price of $87.95. Typically, after analysts publish a “reiterated rating” report on a stock, they will later issue periodic updates, usually followed by a price target change.
Shares of The Hanover Insurance Group, Inc. (NYSE: THG) opened at $87.95 yesterday and traded in a range between, $85.18 and $87.95, and last traded at $85.45, a decrease of $3.48 from the previous closing price.
The Hanover Insurance Group, Inc. (NYSE: THG) currently has a market cap of 3.64B.
The Hanover Insurance Group, Inc. (NYSE: THG) Average Daily Trading Volume
The stock’s average daily volume is 212,216 shares out of a total float 41,962,000 and some 81,994 shares traded hands yesterday, 76 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
The Hanover Insurance Group, Inc. (NYSE: THG) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, The Hanover Insurance Group, Inc. (NYSE: THG) now has a 50-day MA of $89.58 and 200-day MA of $81.86. It has traded in a 52-week range between $74.06 – 91.990 and today’s last price is 7.12%% lower than the 52 week high of $91.99.
Earnings growth is a crucial factor to look at when buying stocks and investors seek companies that have increased their earnings at least 25% or more for the past 3 years.
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