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Valued at $32.9 billion by market cap, The Hartford Financial Services Group, Inc. (HIG) is a leading financial services company that operates across multiple sectors, including insurance and investments. Based in Hartford, Connecticut, the company provides a wide array of products, such as property and casualty insurance, group benefits, and mutual funds.
Shares of the insurance and financial services firm have significantly outpaced the broader market over the past 52 weeks. HIG has notably gained 55.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 27.8%. In 2024, shares of HIG are up 38.2%, compared to SPX's 17.8% gain on a YTD basis.
Zooming in further, HIG is also outperforming the US Insurance iShares ETF's (IAK) 36.7% gain over the past 52 weeks and a 22.56% increase on a YTD basis.
Hartford Financial has outperformed due to a significant rise in earned premiums from its property & casualty and group benefits segments, coupled with a reduction in total expenses as a percentage of revenues, which boosted its adjusted net income significantly.
Moreover, the stock surged 7.1% following its Q2 earnings release on Jul. 25 due to a strong 35% increase in net income, driven by robust performance in Commercial Lines and Group Benefits and the announcement of a new $3.3 billion share repurchase program. The company's improved core earnings, better-than-expected results, and solid return on equity (ROE) further boosted investor confidence.
For the current fiscal year, ending in December, analysts expect HIG's EPS to grow 13.6% year over year to $10.09. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on one another occasion.
Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, two “Moderate Buys,” 10 “Holds,” and one “Strong Sell.”
This configuration is slightly more bullish than three months ago, with seven analysts suggesting a “Strong Buy.”
On Aug. 19, Morgan Stanley (MS) analyst Bob Huang maintained a “Hold” rating on Hartford Financial Services and set a price target of $110.
The mean price target of $117.44 represents a premium of just 5.7% to HIG's current levels. The street-high price target of $144 implies a modest potential upside of 29.6% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
