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Hartford Financial (HIG) Hits 52 Week High: More Room to Run?
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On Mar 19, shares of The Hartford Financial Services Group, Inc. (HIG - Free Report) touched a 52-week high of $67.90 before closing the session a tad lower at $67.68.
Over the past year, this insurance company’s stock has rallied 120.4% compared with its industry’s growth of 110.1%. The performance also looks healthier than the stock movements of other companies like Old Republic International Corporation (ORI - Free Report) and SelectQuote, Inc. (SLQT - Free Report) , which have 77.1% and 9.2%, respectively, in the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This upside followed the announcement of the insurance giant Chubb Limited’s (CB - Free Report) proposal to buy Hartford Financial for $23.2 billion in a cash-and-stock transaction. This could possibly be one of the biggest deal wins in the space. Hartford Financial has confirmed receiving the proposal on Thursday but didn’t give a response as of now.
The deal makes sense as Hartford Financial has been selling various units to streamline its operations for a while now. It is consistently vending non-core businesses to concentrate on its U.S. operations and enhance its operating leverage. Apart from lowering expenses, boosting profitability and improving returns to shareholders, these divestitures are driving the company’s financial flexibility by freeing up more capital. Hartford Financial has a market cap of around $24 billion.
Hartford Financial’s solvency level also impresses. Its capital appreciations, repayment of government funds and measures to de-risk its balance sheet increased its financial strength. It also has an intelligent capital management strategy, featuring share buybacks and dividend hikes. It recently raised its quarterly dividend by 8%. Management also announced a share buyback authorization of $1.5 billion, effective Jan 1, 2021 through Dec 31, 2022. This should instill investors’ confidence in the stock.
Its return-on-equity (ROE) reflects growth potential. The company’s trailing 12-month ROE of 12.5% compares favorably with the industry average of 7.6%, mirroring its efficiency in using its shareholders’ funds.
Further Upside Left?
The company’s enhanced portfolio and solvency position are likely to position it well for long-term growth. It has an impressive Value Score of A, reflecting its attractive stock value.
Other factors, such as its strategic measures and capital position poise the company well for growth.
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Hartford Financial (HIG) Hits 52 Week High: More Room to Run?
On Mar 19, shares of The Hartford Financial Services Group, Inc. (HIG - Free Report) touched a 52-week high of $67.90 before closing the session a tad lower at $67.68.
Over the past year, this insurance company’s stock has rallied 120.4% compared with its industry’s growth of 110.1%. The performance also looks healthier than the stock movements of other companies like Old Republic International Corporation (ORI - Free Report) and SelectQuote, Inc. (SLQT - Free Report) , which have 77.1% and 9.2%, respectively, in the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This upside followed the announcement of the insurance giant Chubb Limited’s (CB - Free Report) proposal to buy Hartford Financial for $23.2 billion in a cash-and-stock transaction. This could possibly be one of the biggest deal wins in the space. Hartford Financial has confirmed receiving the proposal on Thursday but didn’t give a response as of now.
The deal makes sense as Hartford Financial has been selling various units to streamline its operations for a while now. It is consistently vending non-core businesses to concentrate on its U.S. operations and enhance its operating leverage. Apart from lowering expenses, boosting profitability and improving returns to shareholders, these divestitures are driving the company’s financial flexibility by freeing up more capital. Hartford Financial has a market cap of around $24 billion.
Hartford Financial’s solvency level also impresses. Its capital appreciations, repayment of government funds and measures to de-risk its balance sheet increased its financial strength. It also has an intelligent capital management strategy, featuring share buybacks and dividend hikes. It recently raised its quarterly dividend by 8%. Management also announced a share buyback authorization of $1.5 billion, effective Jan 1, 2021 through Dec 31, 2022. This should instill investors’ confidence in the stock.
Its return-on-equity (ROE) reflects growth potential. The company’s trailing 12-month ROE of 12.5% compares favorably with the industry average of 7.6%, mirroring its efficiency in using its shareholders’ funds.
Further Upside Left?
The company’s enhanced portfolio and solvency position are likely to position it well for long-term growth. It has an impressive Value Score of A, reflecting its attractive stock value.
Other factors, such as its strategic measures and capital position poise the company well for growth.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>