NYSE:HIG
$28.58
(3/17 4:00PM)
+4.8%
| Open | $28.26 |
Mkt Cap | $10.5 Billion |
| High | $29.12 |
52Wk High | $29.59 |
| Low | $27 |
52Wk Low | $7.16 |
| Volume | 24.5 Million |
Avg Vol 10D | 6.8 Million |
Ockham's Rating/Recommendation Summary
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HIG Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, HIG the high and low end of the Price to Sales per share ratios are 1.45x and 0.61x respectively.
Notice that HIG's current Price to Sales per share ratio is 0.42x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $26.75, HIG is 60% below where we would expect to see it. This will beneficially factor into our final analysis of HIG as it is not often that this stock sinks to these levels.
HIG Cash Earnings
When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of HIG, it appears that either the current estimate for Cash Earnings is negative or HIG is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters.
Remember that Cash Earnings is not the only way to value a company's potential, but in our analysis it is the most important. Thus, for our analysis HIG receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.
HIG Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from HIG against the historic high and low levels over an available data range. Because HIG has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In HIG’s case, the estimated annual dividend is $0.20 producing a current dividend yield of 0.75%. The highest dividend yield from HIG in recent history was 50.96% while the lowest dividend yield was 0.68%. With that range in mind, HIG’s current dividend yield is a full 97.10% below its median dividend yield historically. This is a negative from our perspective.
HIG Having an Active Day in News, Now on Bloomberg News
We are observing a lot of attention being paid to HIG in the news, so if you hold the stock you may want to take a look at what is going on.
We have recently (Saturday, March 06, 2010) downgraded this stock due to deteriorating fundamentals. As of this week's report, we have an Overvalued valuation on HIG because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, The Hartford Financial Services Group, Incorporated has actually sunk a bit in comparison to the others. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards HIG and think that it will generally perform in-line with the S&P 500. Take notice of the news on this stock because it is up $1.92 since the close of trading yesterday.
“… HARTFORD FINANCIAL is also a winner. Jpmorgan chase is also edging up despite charges of alleged fraud in milan. The one like it is health-care stocks. …”
Fox Business: HIG is Among Most Active Stocks in the News Today
We are observing a lot of attention being paid to HIG in the news, so if you hold the stock you may want to take a look at what is going on.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Fox Business said about THE HARTFORD FINANCIAL SERVICES GROUP, INC.
Learn About RazorWire?Discussion of Debt at HIG on In the Loop
In the aftermath of the credit crisis, debt is a key area investors should understand. A recent news story on In the Loop talks about HIG's debt load.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what In the Loop said about THE HARTFORD FINANCIAL SERVICES GROUP, INC.
Learn About RazorWire?HIG's Debt Load is the Topic on The Opening Bell on Fox Business
Leverage is not necessarily a bad thing for HIG or any other company, but staying informed on their debt is important. A recent story from The Opening Bell on Fox Business discusses HIG's debt.
We have recently (Saturday, March 06, 2010) downgraded this stock due to deteriorating fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, The Hartford Financial Services Group, Incorporated has actually sunk a bit in comparison to the others. Take notice of the news on this stock because it is up $1.85 since the close of trading yesterday. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards HIG and think that it will generally perform in-line with the S&P 500. As of this week's report, we have an Overvalued valuation on HIG because the price has gotten too high to be justified by the fundamentals.
“… HARTFORD FINANCIAL gaining about 5%. This is the second-best performer in the s&p 500. S&p cut its outlook on the company's credit rating. > > thank you so much. …”
Notice a Discussion Covering HIG Appeared Recently in the Financial News
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on HIG from In the Loop.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what In the Loop said about THE HARTFORD FINANCIAL SERVICES GROUP, INC.
Learn About RazorWire?News Breaking on The Hartford Financial Services Group, Incorporated on The Opening Bell on Fox Business
As always, the latest news on HIG is available to Ockham clients through RazorWire, and it was mentioned recently on The Opening Bell on Fox Business.
Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards HIG and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, The Hartford Financial Services Group, Incorporated has actually sunk a bit in comparison to the others. We have recently (Saturday, March 06, 2010) downgraded this stock due to deteriorating fundamentals. As of this week's report, we have an Overvalued valuation on HIG because the price has gotten too high to be justified by the fundamentals. Take notice of the news on this stock because it is up $1.51 since the close of trading yesterday.
“… Let's start with HARTFORD FINANCIAL, this matured in the middle of the turnaround. Able to a stock and debt sale. They will repeat -- weak -- they will be paid over $3 billion ... …”
Notice a Discussion Covering HIG Appeared Recently in the Financial News
News has broken via the television and viral blogs regarding HIG, so investors should take an interest in learning what was said.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HIG has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe The Hartford Financial Services Group, Incorporated will perform just about the same as the index. Our valuation of HIG has become less favorable recently, and we have seen it necessary to downgrade the stock. At Ockham, we are not advising buying The Hartford Financial Services Group, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals. Check the news on this stock because there is a catalyst that has allowed this stock to advance 5.62% today.
“… Funds, including discover financial, big credit card company, of course, and HARTFORD FINANCIAL, both announcing they're going to repay their funds. …”
News on HIG From the Pundits on In the Loop
News has broken via the television and viral blogs regarding HIG, so investors should take an interest in learning what was said.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what In the Loop said about THE HARTFORD FINANCIAL SERVICES GROUP, INC.
Learn About RazorWire?News on HIG From the Pundits on The Opening Bell on Fox Business
As always, the latest news on HIG is available to Ockham clients through RazorWire, and it was mentioned recently on The Opening Bell on Fox Business.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Due to deterioration in our valuation, we downgraded HIG as of Saturday, March 06, 2010. The latest news on HIG has created quite a stir as the stock is trading $1.57 higher in today's session. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; HIG has received less coverage from the financial media in business television and blogs.
“… HARTFORD FINANCIAL is a positive sign for the capital markets. As adam mentioned, cit is a very interesting story to watch. The stock is moving higher. …”
HIG News Mentioned on In the Loop Recently
The latest news from In the Loop on HIG is available through Ockham's news analytics platform RazorWire.
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Learn About RazorWire?