On May 7, 2023, the Securities and Exchange Commission received a filing from Affinity Investment Advisors LLC indicating their new purchase of 3,360 shares of The Hartford Financial Services Group, Inc. (NYSE:HIG). These shares are valued at approximately $255,000 and reflect an increasingly optimistic perspective for the future. This news comes alongside the recent quarter dividend paid on April 4th, which saw investors receiving a $0.425 dividend per share on record as of March 6th.
Analysts have weighed in on this development with a “Moderate Buy” consensus rating according to Bloomberg. Of note is Roth Capital’s “neutral” rating restated on February 3rd and Credit Suisse Group’s reaffirmed “outperform” rating and target price set at $104.00 reported on April 17th. Additionally, The Goldman Sachs Group recently raised its previous neutral rating to a buy rating and set a $84.00 target price on the stock.
The Hartford Financial Services Group prides itself as being one of America’s largest investment and insurance companies which sets its sights on helping customers protect what they value most. Their business model emphasizes recognizing the needs of their customers within each stage of life’s journey and subsequently tailoring their services to optimize potential outcomes corresponding with changing circumstances.
In light of current economic trends pointing towards an ever-increasing need for solid financial planning in uncertain times, it is no surprise that smart investors are esteeming The Hartford as an excellent opportunity well-positioned for success in today’s marketplace.
Insiders Sell Shares as Institutional Investors Increase Stake in The Hartford Financial Services Group Amidst Pandemic Economic Turbulence
As of the fourth quarter of last year, several hedge funds and institutional investors have increased their stake in shares of The Hartford Financial Services Group, Inc. by a significant percentage. HM Payson & Co. has raised its stake by 4.8%, while Toroso Investments LLC, Spire Wealth Management, Transatlantique Private Wealth LLC, and Industrial Alliance Investment Management Inc. have all grown their positions by varying degrees as well. Institutional investors now own nearly 90% of the company’s stock.
However, recent insider trading has shareholders on edge. EVP Robert W. Paiano sold over 14,500 shares of the business’s stock in February for a total value of $1,125,259.96. CEO Christopher Swift also sold over 34,600 shares a week later for $2,711,751.68. Insiders have sold a total of over 96,500 shares valued at $7,524,178 in the last three months alone.
Despite these concerns and other economic turbulence caused by the pandemic that affected businesses worldwide, The Hartford Financial Services Group has maintained its dividend to investors and paid out a quarterly dividend on April 4th to those who were invested as of March 6th.
Looking at recent earnings data from April 27th shows that the insurance provider reported earnings per share (EPS) of $1.68 for the quarter—equal to analysts’ consensus estimates—and revenue totaling $5.91 billion compared to the estimated $5.70 billion.
Despite fluctuations in market trends surrounding stocks like The Hartford Financial Services Group—a company with sharp increases in shared stake ownership percentages but also insider selling and pandemic-induced economic uncertainty—analysts continue to predict an EPS of 7.94 for this year.
In summary: Though investors have reason for concern but not alarm due to insider trading activity regarding shares in The Hartford Financial Services Group coupled with global economic volatility due to the pandemic, it appears that the hedge funds and institutional investors who have continued to increase their stake in the stock are content with their investment decision.
