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The Hartford Financial Services Group, Inc. (HIG), headquartered in Hartford, Connecticut, offers insurance and financial services worldwide, leveraging over 200 years of expertise to serve individual and business customers. Its market cap currently stands at $30 billion. The insurance and financial services firm is expected to announce its fiscal Q2 earnings for 2024 after the market closes on Thursday, July 25.
Ahead of the event, analysts anticipate Hartford Financial Services to report a profit of $2.29 per share, up 21.8% from $1.88 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS estimate in three of the last four quarters while missing on one other occasion. Its adjusted EPS for the last reported quarter, although increasing by 39.3% year over year to $2.34, it missed the Wall Street forecasts by 3.7%.
Looking ahead to fiscal 2024, analysts expect Hartford Financial Services to report an EPS of $9.86, up 11% from $8.88 in fiscal 2023. Its fiscal 2025 EPS is projected to grow 15.2% annually to $11.36.
HIG stock has surged 26.6% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 17.7% returns and S&P 500 Financials Sector SPDR’s (XLF) 12.7% gains over the same time frame.
The Hartford Financial Services Group is riding several tailwinds. Q1 commercial lines saw an 8% top-line growth and strong underwriting results, while small commercial hit record premiums, with new business growth of 11%. Middle & large commercial saw an 18% boost in new business. Global Specialty’s written premium surged 20% in wholesale, especially in construction. Additionally, Personal Lines made progress in restoring auto profitability with significant renewal rate increases. Group Benefits enjoyed a core earnings margin of 6.1%, backed by strong long-term disability claim recoveries and improved life mortality trends. These elements, combined with robust investment income, drove Hartford Financial's impressive performance and set a positive outlook.
The recent surge in HIG stock can be attributed to several positive developments. Last week, the stock gained momentum following Michael Fish’s appointment as head of Group Benefits, succeeding Jonathan Bennett. This may have boosted investor confidence in the company's prospects.
Additionally, Hartford Financial has a strong track record of rewarding shareholders, with 26 consecutive years of dividend payments. On July 2, the company paid a dividend of $0.47 per share, resulting in an annualized payout of $1.84 per share and a yield of 1.81%, surpassing XLF's 1.55% yield. This likely boosted investor interest and drove the stock’s outperformance.
The consensus opinion on Hartford Financial Services stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 19 analysts covering the stock, seven recommend a “Strong Buy,” two suggest a “Moderate Buy,” and the remaining 10 advise a “Hold” rating.
The average target price for Hartford Financial Services is $110.12, indicating a potential upside of 8.2% from the current price levels.
On the date of publication, Sristi Jayaswal 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.
