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Valued at a market cap of $34.51 billion, The Hartford Financial Services Group, Inc. (HIG) is a leading insurance and financial services provider. Headquartered in Hartford, Connecticut, it offers a wide range of property and casualty insurance, group benefits, and mutual funds.
Companies valued at $10 billion or more are classified as "large-cap" stocks, and Hartford Financial Services is a prime example of this, highlighting its significant scale, stability, and influence within the financial services sector. HIG leverages its diversified portfolio of property and casualty insurance, group benefits, and mutual funds to maintain a strong competitive position. Its extensive experience, risk management expertise, and focus on customer-centric solutions enable the company to serve a wide range of clients effectively.
Despite the notable strengths, HIG shares are currently 11.3% below their 52-week high of $124.90, which they hit on Nov. 27. The stock has plunged 5.1% over the past three months compared to the S&P 500 Index’s ($SPX) 7.8% returns over the same time frame.
HIG’s long-term prospects remain strong, with the stock delivering a robust 37.8% gain on a YTD basis and climbing 38.7% over the past 52 weeks. In comparison, SPX has risen 27.3% in 2024 and 28.7% over the same period.
Notably, HIG has consistently traded above its 200-day moving average throughout the past year; however, since mid-December, the stock has slipped below its 50-day moving average.
Shares of HIG tumbled 6.8% following its Q3 earnings release on Oct. 24. The company’s net income rose 18% year-over-year to $761 million, while revenues grew 9.5% to $6.8 billion, driven by solid growth in commercial and personal lines premiums, lower net realized losses, and higher net investment income.
Highlighting the contrast in performance, rival American International Group, Inc. (AIG) has underperformed HIG, with a 6.4% gain on a YTD basis and a 9.1% return over the past year.
Given HIG's recent outperformance compared to the market, analysts are moderately bullish about its prospects. The stock has a consensus rating of "Moderate Buy" from 22 analysts in coverage. The mean price target of $127.20 suggests a 14.9% premium to its current levels.
