Hartford Insurance Group (NYSE:HIG) stock performs better than its underlying earnings growth over last five years

In This Article:

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, you can make far more than 100% on a really good stock. Long term The Hartford Insurance Group, Inc. (NYSE:HIG) shareholders would be well aware of this, since the stock is up 246% in five years. On top of that, the share price is up 13% in about a quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.

Since the stock has added US$2.0b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During five years of share price growth, Hartford Insurance Group achieved compound earnings per share (EPS) growth of 17% per year. This EPS growth is slower than the share price growth of 28% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. That's not necessarily surprising considering the five-year track record of earnings growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
NYSE:HIG Earnings Per Share Growth May 3rd 2025

We know that Hartford Insurance Group has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Hartford Insurance Group the TSR over the last 5 years was 288%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

It's good to see that Hartford Insurance Group has rewarded shareholders with a total shareholder return of 31% in the last twelve months. That's including the dividend. Having said that, the five-year TSR of 31% a year, is even better. If you would like to research Hartford Insurance Group in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.